The Brief

• Millions of retired teachers, firefighters, police officers, and other public workers will see a boost in their Social Security benefits.

• The SSA has also changed how it will recoup overpayments, and identity verification requirements for some.

WASHINGTON – There are a few changes in April that could impact certain Social Security beneficiaries.

This includes a boost for many retired public workers, stricter identity requirements, and changes to how the agency recoups accidental overpayments.

Social Security payment increase after new law

Big picture view

Millions of retired teachers, firefighters, police officers, and other public workers will see a boost in their Social Security benefits following the repeal of two provisions that previously reduced payments for those receiving state or local government pensions.

The Social Security Administration (SSA) announced that affected retirees would receive a one-time retroactive payment by the end of March, with higher monthly payments beginning in April.

Dig deeper

This change comes after the Social Security Fairness Act was signed into law by former President Joe Biden earlier this year. The law repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—two policies that limited benefits for those receiving other retirement payments.

Social Security changes how it recoups overpayments

What we know

The SSA has also changed how it will recoup overpayments. When a person has been overpaid, the law requires the SSA to seek repayment. People who are overpaid will now automatically be placed in full recovery at a rate of 100% of the Social Security payment – a change which kicked in at the end of March.

The backstory

In the past, under the Obama administration and the first Trump administration, common practice was to withhold the next benefit at 100% until accidentally overpaid funds were recouped. But a previous plan under the Biden administration had sought just 10% each month of funds that were overpaid to help reduce financial hardship on people with overpayments.

The agency recently reinstated the former plan that withholds 100% of people’s benefits if they are accidentally overpaid.

Social Security in-person requirement for some

What’s next

Beginning April 14, the SSA is implementing stricter identity verification procedures to prevent fraud, including in-person office visits for some. The agency said some new Social Security applicants and existing recipients who want to change their direct deposit information will no longer be able to verify their identity over the phone. And those who cannot properly do so through the agency’s “my Social Security” online service will be required to visit an agency field office.

However, this change does not apply to individuals applying for Social Security Disability Insurance (SSDI), Medicare, or Supplemental Security Income (SSI).

Social Security April payment schedule

Timeline

Social Security sends regular monthly payments (SSA benefits), but the date varies – generally depending on the day you were born. Social Security retirement, disability, and survivor (RSDI) beneficiaries who filed claims after May 1, 1997, are assigned either the second, third, or fourth Wednesday of the month. Those who receive Supplemental Security Income (SSI), which is monthly payments for people with disabilities and older adults who have little or no income or resources, get paid on the 1st of the month.

If the 1st falls on the weekend or holiday, then the payments are typically issued on the previous weekday. Those who received benefits before May 1997 also have a specific payment date.

KALAMAZOO, Mich. — The trade between the U.S. and other countries does not show many signs of slowing down. It’s resulted in a historic downfall in the stock market since last week.

It’s uncertainty has many Americans worrying about their finances which for a lot of people include long-term investments.

“Right now, we’re trying not to live paycheck to paycheck but it almost seems like that’s the case especially with our mortgage, insurance, everything,” Shelby Laidler, an Allegan County resident, said.

Per analysts, it’s too early to tell where things will go during such an unpredictable time.

“The biggest advice I have for people who have money in the market is do not panic. This is short-term and we’ve seen different market downturns in 2022, COVID, the market crashed in 2008, but the market has come back each time,” Jordan Marchewka, certified financial planner with HFG Financial Group, said.

According to Marchewka, it’s important to note that investing is a long-term goal. It should be done on a month-to-month basis regardless of what the market looks like.

If you only invest when the market is up then you could make less money overall, Marchewka told News Channel 3, adding that a high-yield savings account is a great way to allow your money to continuously grow while, at the same time, avoiding the risk that comes with the larger market.

“It can be stressful especially with not really being on my own lately. I’m think more about what I’m spending and where I’m going especially with gas because I drive a Jeep,” Nikita Smith, a Kalamazoo resident, said.

Nikita Smith is friends with Shelby Laidler. They’re both in the veterinary industry and are both homeowners. Though, they both did not obtain a home solely on their own income.

Laidler bought a foreclosure with her husband and Smith teamed up with her mom. They also both have 401k plans, which Marchewka stated is a great way to ensure a stable retirement.

“I tried building my credit as soon as I could and tried to be responsible with finances but ultimately life got in the way,” Laidler said.

Laidler admits that because of the economy and unstable stock market it has been hard to save. It’s why she and her husband bought a foreclosure as a first home.

Unfortunately, that came with some much-needed cosmetics, such as a 30-year-old furnace and water heater.

Laidler is hoping President Trump’s tariffs on certain material won’t impact any new renovations.

As for Smith, she has found new ways to save money.

“I have just started to put a portion away that automatically comes out of my paycheck, so I don’t even see it because if I don’t see it I know it’s getting saved away,” Smith said.

In the meantime, Marchewka shared a few tips, including what he says are the biggest mistakes he sees people make.

For younger people, it’s not taking the initiative to educate themselves on the importance of investing.

For older people it is assuming that reaching a certain age guarantees you a cushy retirement plan.

According to Marchewka, Michiganders should have plans because there are different dates and circumstances for securing social security, Medicare and Medicaid.

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.

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.