Tim Harty, The Business Times 

Before former President Joe Biden exited the White House, he signed the Social Security Fairness Act, which repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) and benefits some people who previously did not qualify for, or had a reduction to, Social Security retirement benefits.

The disqualifying or benefit-reducing factor was they had a pension through an organization such as Colorado’s Public Employees Retirement Association (PERA) or the Civil Service Retirement System; they were covered by a foreign social security system; or they worked in a job that did not pay into Social Security. Sometimes their working career was split between jobs that paid into Social Security and jobs that did not pay into Social Security.

If such people have a spouse who receives Social Security benefits; survived a spouse who received Social Security benefits; or had their Social Security benefits significantly reduced because they also received a pension, they may now through the Social Security Fairness Act be eligible to receive benefits that previously were denied.

If you think you now may qualify but never submitted an application for Social Security retirement benefits, your next step needs to be filing an application online at SSA.GOV. That’s the extremely important first step, according to Barbara Traylor Smith, a senior independent wealth advisor who offers advisory services through Foundations Investment Advisors.

“A lot of people, I think, just didn’t apply, because they thought they don’t get any Social Security. … And I let them know, ‘Go apply, it’s important,’” she said.

Traylor Smith said she recently received an email from the Social Security Administration, and it said about 3.2 million people are affected by the Social Security Fairness Act. The email said the SSA has processed a little more than 1.1 million instances of affected people.

That, Traylor Smith said, means about 2.1 million people still have benefits they can claim, so she wants to spread the word to anyone in Grand Junction who stands to benefit.

To help identify people who now are qualified for benefits, Traylor Smith gave a few examples:

• For the person who worked 20 years in a job that paid into Social Security and worked 20 years in another job that didn’t pay into Social Security, they previously saw their Social Security retirement benefit cut substantially.

They’re the ones who were harmed the most by the Windfall Elimination Provision, Traylor Smith said, “because they had some in both plans. They would get basically the full reduction of their Social Security, even though they worked 20 years in Social Security.”

With the repeal of that provision, that reduction is no longer taken out of the retirement benefits.

• For married couples in which one worked a job that paid into Social Security, and the other worked a job that never paid into Social Security, the Windfall Elimination Provision reduced the payment to the person who never paid into Social Security substantially. With the repeal of the provision, that spouse whose benefit was reduced now can receive the full spousal benefit equal to half of the spouse’s full retirement-age benefit.

“It really makes a difference if they have a spouse,” Traylor Smith said. “Because the way Social Security works is even if they didn’t work in Social Security at all – let’s say they never had a Social Security job – they’re entitled to a spousal benefit under their spouse.

“So, let’s say their spouse’s Social Security is $2,000 a month. They are entitled to half of that. They’re entitled to $1,000 a month. So, if they thought they never got anything because it wasn’t on their record, and they never applied because they didn’t claim the spousal benefit, that could be $1,000 a month to them.”

• Another example, this one benefitting from the repealing of the Government Offset Provision, is surviving spouses.

If a person never paid into Social Security, but their spouse who died had received Social Security retirement benefits, the surviving spouse is entitled to 100 percent of the survival benefit.

“If the husband had been getting $2,000 a month, and the wife never claimed it, now because of the Government Pension Offset (being repealed), they now could add $2,000 a month to their monthly income,” Traylor Smith said. “And you think about these people that never spent money on anything. And here they are, they’re going to get this kind of additional payment, it’s huge.”

There’s one major difference in applying for the survivor benefit, though. Instead of applying online, the application process for this benefit needs to be done via phone, calling 1-800-772-1213, Monday through Friday, 7 a.m. to 4 p.m. MST. Tell them you are calling regarding the Social Security Fairness Act, and they will direct you to a group that understands what to do.

The challenge in such an instance, Traylor Smith said, “is most of these people could be pretty old. And so this is going to be very confusing for them, and, of course, Social Security help may be limited. So, their children or friends or someone is probably going to have to help them.”

WANT TO LEARN MORE?

Go online to www.ssa.gov to:

• Get more information about the Social Security Fairness Act and its repeal of the Windfall Elimination Provision and Government Pension Offset.
• File an application with the Social Security Administration.