Social Security isn't always the easiest program to navigate because it's constantly going through changes. Some changes are expected, such as cost-of-living adjustments, wage base limit adjustments, and retirement earnings test threshold changes.
Other changes are unexpected and can happen seemingly at the drop of a dime based on legislative moves. And there has been no shortage of proposed Social Security changes since the Trump administration took over, and a few have been implemented, including some that begin this month.
If you're currently receiving Social Security or will be receiving it soon, make sure you're aware of the following changes so you're not caught off guard.
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1. Millions can expect to have their monthly benefit increased
The first change is one that millions of Social Security recipients will appreciate.
On Jan. 5, former President Biden signed the Social Security Fairness Act, repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Those provisions reduced Social Security benefits for people who received public pensions from jobs not covered under Social Security (think: teachers, law enforcement, firefighters, certain government workers, etc.)
Around 3.2 million Social Security recipients will see their monthly benefits increase because of President Biden's move, with an average increase of $360. People receiving Social Security spousal benefits will see an average boost of $700, and survivor benefit recipients will see checks rise $1,190 on average.
Some retroactive payments were sent out in March. Most people can expect their increases to begin this month, although there are some exceptions for more complicated situations that couldn't be automated.
2. Overpayment recovery rates will go back to 100%
Social Security isn't perfect, and sometimes mistakes are made (surprise, surprise). One of those mistakes is overpaying recipients, and when this happens, Social Security can collect the extra payment by taking it back from future payments.
Previously, when Social Security overpaid a recipient, it could recover 10% of monthly checks until the overpayment was recovered. For example, if your monthly benefit is typically $1,500, and you accidentally receive $2,000 for one month, Social Security would withhold $50 for 10 months until it received the $500 back.
The 10% repayment rule is no longer in effect. Now, if you're overpaid, Social Security will go back to its previous rule of withholding all of your Social Security payments until they receive the full amount back. If your monthly benefit is $1,500 and instead you received $500 too much ($2,000) by accident, your next monthly check would be $1,000.
Depending on how much you were overpaid, you could miss one or multiple Social Security checks altogether. Luckily, you can appeal the decision or request a waiver, as long as you can prove the overpayment wasn't your fault and paying it back would put your livelihood at risk.
To appeal an overpayment, fill out this Request for Waiver of Overpayment Recovery form and then fax or mail it to the nearest Social Security branch to your home.
3. Identity verification procedures will get stricter
Beginning April 14, the Social Security Administration (SSA) plans to enact stricter identity verification procedures.
Things like address changes and updates to direct deposit information (which will only take one business day instead of up to 30 days going forward) can still be done via your account on the SSA website with no problems.
However, if you don't typically use the online account -- which you should, if possible, because it's much more convenient -- you'll need to visit your local Social Security office and have a valid government-issued ID for changes to your benefits or to start benefits.
Numerous Social Security offices are expected to close this year, so it's worth double-checking which location you should visit just in case the one you've previously visited is part of the closures. The SSA has an online locator that can help you find the nearest Social Security office based on your zip code.
