PALM BEACH COUNTY, Fla. — Thousands of Floridians will see a bump in their Social Security benefits. The increase is the result of the Social Security Fairness Act, recently signed into law by President Joe Biden.
The White House said the change will impact nearly 3 million current and former public employees, including police, firefighters and teachers. The Biden Administration said 2.5 million Americans will receive a lump sum payment of a $1,000 to make up for the shortfall in benefits they should’ve had received last year.
Ashley Terrell, a local financial planner with Burns Estate Planning and Wealth Advisors said the new law change will make financial planning easier for retirees, especially those on a fixed income.
“This is like giving them a 10% raise,” she said. “This is going to help them accomplish those little things that they want to do in retirement.”
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Under the elimination of two provisions enacted close to 40 years ago, Floridians will see a monthly increase in their social security benefits.
Terrell said 110,000 Floridians will see a bump with the rollback of the Windfall Elimination Provision (WEP). The provision shrunk benefits to workers who received pensions that were not covered by Social Security payroll taxes. The Congressional Budget Office said the estimated average of the increase will be about $360 a month.
The sunset of the second provision called the Government Pension Offset (GPO) will benefit the spouses and widows of public sector workers. Terrell said close to 30,000 Floridians will see the payout. The Congressional Budget Office said it could range from $700 to $1,190 a month.
As for how soon recipients will see the change, the timing of the implementation is still being worked out.
Terrell said social security recipients should talk to a financial advisor. Experts also advise people to check with the Social Security Administration to make sure their personal information on file is accurate.