Hand holding several hundred-dollar bills over United States Social Security cards
ECONOMY

Radical shift in United States Social Security: they're going to have to pay you, hurry up

Social Security offers you their help so you can recover this money: Be careful with the details, it's vital

Social Security in the United States has issued a blunt message that has surprised millions of people. The announcement concerns two highly controversial rules: WEP (Windfall Elimination Provision) and GPO (Government Pension Offset).

For years, these rules have reduced retirement payments and benefits for spouses or widows to those who worked in the public sector. Now, the shift is radical and euphoria is starting to grow. It is estimated that 3 million public sector workers in the United States have been affected.

Social security warns thousands of citizens: they have the right to claim

Police officers, firefighters, teachers, and other employees saw their Social Security benefits suffer a significant reduction in benefits when they also had a state or local pension. With the announced change, those people could claim what has been taken from them for years. Many are already talking about compensation that could amount to thousands of dollars.

Hands holding hundred-dollar bills next to a United States flag
SSA knows this notice is important for many people | Getty Images Signature, Getty Images Pro

WEP and GPO have been heavily criticized because they created inequality. WEP reduced the direct retirement benefit, while GPO affected the payments a spouse or widow could receive.

This is how you can claim what is yours: social security warns

Now that these rules have been repealed, Social Security in the United States is leaving the door open for those who were harmed to be eligible to recover that money. People need to act quickly, because the process requires an official application.

Claiming is not complicated, but it requires care. SSA clarifies that each case will be reviewed, and not everyone will receive the same amount. Everything will depend on the years worked, the accumulated pension, and each person's specific conditions. The important thing is to submit the documentation on time and not let the deadline expire.

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SSA warns about the disadvantages of this claim | Freepik

However, the news also brings disadvantages that should not be overlooked. Social Security itself warns that compensation will have tax and financial implications. In practice, some retirees will have to pay taxes on up to 85% of their benefits in two specific cases: when individual income exceeds $25,000 or when the joint return with a spouse exceeds $32,000.

Recovering the money may not be free

That means the joy of recovering money may come with an added cost. Although WEP and GPO are eliminated, the extra payments received could increase the tax burden for thousands of beneficiaries. That's why SSA stresses the importance of consulting with a financial advisor before making a claim.

Millions of affected people have the opportunity to claim what they lost, but they must act quickly, know the conditions, and be aware of the tax consequences. A historic compensation is on the table, although with the clear warning that not everything will be so simple. SSA's message is clear: "hurry up, claim what is yours, but do it carefully."

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