2 Social Security Changes Happened This Past Month That You Need To Know About

It’s not unusual for Social Security to undergo changes on a yearly basis. Sometimes, those changes are positive ones. Other times, less so.

It’s most common for Social Security to undergo changes at the start of the year. In January, for example, Social Security benefits received a cost-of-living adjustment that resulted in a 2.5% boost.

Social Security’s earnings-test limits also rose at the start of the year. This has given seniors who opt to work while collecting benefits more leeway to earn income without risking having a portion of those monthly checks withheld.

But a couple of changes to Social Security actually occurred more recently. Here are two updates you may have missed over the past four weeks.

1. Benefits rose for some recipients

Social Security was once designed to make sure that certain pension workers didn’t double dip on benefits. To that end, it enacted two provisions that reduced benefits for certain recipients — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Earlier this year, the Social Security Fairness Act was signed into law, which repealed the WEP and GPO. As a result, an estimated 3.2 million Americans were eligible to have their monthly benefits increase.

Social Security recipients impacted by the new laws were also told they’d be eligible for a retroactive payment to make up for benefits that were previously withheld. The Social Security Administration (SSA) didn’t make all of those lump sum payments right away. But in the past four weeks, more people who were owed that money may have finally received it.

2. The overpayment recovery rate was adjusted

Social Security has been known to overpay benefits. And at a time when the program is facing potential cuts due to a revenue shortfall, the program is invested in recouping all of the money it can.

For a period of time, Social Security could only go after beneficiaries for 10% of the overpayments it made. But in March, President Trump increased the program’s recovery rate to 100%.

In late April, though, the SSA had a change of heart. It updated its guidelines to a 50% recovery rate instead.

While this is better news than a 100% recovery rate, it means that seniors who received more Social Security than they should have could see up to 50% of their future benefits withheld until the SSA is able to collect all of the money it’s owed.

However, people in that boat do have some recourse. They can contact the SSA and request a lower recovery rate if losing half of their monthly benefits will render them unable to pay their bills.

Even though Social Security tends to experience the most change at the start of the year, the past four weeks or so have been interesting, to say the least. It pays to keep tabs on Social Security to see what changes, if any, come down the pike in the coming four weeks as well. You never know when an update to the program might have a direct impact on you.

The post 2 Social Security Changes Happened This Past Month That You Need To Know About appeared first on 24/7 Wall St..