You may have heard about the recently signed Social Security Fairness Act. What is it and will it affect your retirement income?
Provision Changes
The Social Security Fairness Act, signed into law on January 5th 2025, eliminates two longstanding provisions for Social Security: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules previously reduced Social Security benefits for retirees who receive pension income from non-covered employment.
Payment Increases
This legislation is projected to result in an average monthly increase of $360 for eligible public sector workers, as well as their spouses and survivors. Additionally, it includes lump-sum payments for over 2.5 million individuals to compensate for benefits missed in prior years, which could amount to several thousand dollars per recipient.
Do you qualify?
Qualified workers include police, firefighters, postal workers, public school teachers, and other government employees. Those who qualify need not apply for these increases, which will happen automatically. The Social Security Administration is still reviewing how to implement the law, so there is no timeframe for these increases for the moment. Between this and the recent 2.5 percent cost of living adjustment, many households are poised to receive a financial boost.
As these factors influence Social Secuity income on a case-by-case-basis, don't hesitate to reach out to your financial advisor to further adjust your retirement strategy.
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OneAZ Wealth Management is a team of LPL Financial licensed professionals and support staff located in OneAZ Credit Union branches across Arizona. OneAZ Wealth Management provides investments, insurance, and retirement planning services intended to guide credit union members towards their financial goals. To learn more about OneAZ Wealth Management, visit OneAZWealth.com or call (877) 566-0517.
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USA Today, January 6, 2025
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