Good news is coming soon for thousands of retirees and public service workers in Connecticut. Starting next month, many will notice a nice bump in their Social Security checks. This change comes after a new law fixed the way benefits were calculated, especially for certain government workers like teachers, police officers, firefighters, and other public employees.
Why Are Social Security Checks Increasing?
For years, two specific rules — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — reduced or even eliminated Social Security payments for many people. These rules mostly affected those who worked government jobs that didn’t pay Social Security taxes but still earned pensions.
Congress recently passed the Social Security Fairness Act, a bipartisan bill, to remove both the WEP and GPO. Former President Joe Biden signed it into law in early January. With these rules now repealed, more than 3 million people nationwide will get higher benefits, including thousands in Connecticut. Some people will even receive back pay dating back to January 2024.
How Much Will Connecticut Residents Receive?
Connecticut has about 708,000 Social Security beneficiaries, making up about 20% of the state’s population, according to 2022 data from the U.S. Social Security Administration (SSA).
Specifically, more than 26,000 people in Connecticut will get a lump sum payment averaging $7,500. In total, that’s nearly $196 million going back into the hands of Connecticut residents. Eligible beneficiaries should receive this one-time payment directly into their bank accounts by the end of March.
In addition, monthly checks will increase starting in April, which will reflect their March benefits (as benefits are always paid one month behind).
How Much Will Monthly Payments Increase?
The amount of increase will vary for each person. Some might see a small boost, while others could receive up to $1,000 more per month. The SSA has already processed about 75% of these adjustments as of late February. They are moving faster than expected, thanks to automation, though a few complex cases might take longer.
Acting SSA Commissioner Lee Dudek shared that the SSA is working quickly to deliver the payments and changes, saying, “The American people deserve to get their due benefits as quickly as possible.”
Who Was Affected Before?
Let’s break down the two repealed provisions:
- Windfall Elimination Provision (WEP):
- This rule reduced Social Security payments for people who worked in jobs that didn’t pay Social Security taxes but also qualified for Social Security.
- It mainly affected those with less than 30 years of substantial earnings covered by Social Security.
- In Connecticut, WEP impacted over 22,000 beneficiaries, especially retired workers like teachers.
- Government Pension Offset (GPO):
- This rule reduced spousal or survivor benefits by two-thirds of the pension amount for government workers.
- Many teachers, police officers, and firefighters saw their Social Security benefits cut significantly, sometimes down to zero, if their pension offset the spousal benefits.
Why Was This Change Needed?
For years, public service workers and unions argued that these rules unfairly punished people who dedicated their careers to public service. Groups like the Connecticut Education Association, Connecticut chapter of the American Federation of Teachers, and Connecticut Alliance for Retired Americans pushed hard to repeal WEP and GPO. Both Republican and Democrat lawmakers supported the move, as did Donald Trump, who endorsed the bill before returning to the White House.
However, not everyone was on board. Some critics raised concerns about the cost. The Congressional Budget Office (CBO) estimated that repealing both provisions would cost nearly $196 billion over 10 years. Others worry it could speed up the timeline of Social Security running low on funds, though experts agree that bigger reforms will be needed in the long run to keep Social Security strong.
U.S. Rep. John Larson of Connecticut was one critic. He felt that while the changes were good, the bill lacked a plan to cover the extra cost. Larson’s own Social Security reform bill suggested funding the repeal by raising the income cap on taxable earnings.
Will Social Security Run Out of Money?
Currently, estimates show that the Social Security Trust Fund can fully pay benefits until 2033. After that, if no changes are made, benefits may be reduced by around 20%. Repealing WEP and GPO will speed up the need for Congress to act on broader Social Security reforms to avoid future cuts.
Other Changes Coming to Social Security
While benefit increases are good news, there are also some new policies that might affect beneficiaries:
- Staff Reductions:
- The SSA announced plans to cut 12% of its workforce.
- It will also reduce its 10 regional offices down to 4.
- This could lead to longer processing times and fewer services.
- New Identity Verification Rules:
- Starting March 31, beneficiaries will no longer be able to verify their identity over the phone.
- Instead, they must verify either online or in person.
- Trump’s SSA says this will help prevent fraud, but critics argue it could make it harder for seniors and people with disabilities to access benefits.
Final Thoughts
The repeal of WEP and GPO is a huge relief for thousands of retirees and public workers in Connecticut and millions across the country. While it’s a positive step, the long-term health of Social Security still requires attention. For now, many Connecticut residents can look forward to larger checks and much-needed financial support starting next month.
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