But a piece of legislation called the Social Security Fairness Act recently changed that.
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What is the Social Security Fairness Act?
This act addresses several decades-old and somewhat controversial rules.
But pensions covered public workers who wouldnt have paid those taxes in public jobs.
However, some people worked public and private jobs during their careers and were getting retirement benefits from both.
TheWindfall Elimination Provision(WEP) reduced Social Security benefits for those who also had a pension.
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This is because the act eliminated the WEP and GPO.
And even better news the law applies to benefits received starting January 2024.
That means those who benefit from the law will receive back payments.
Who is Benefitting From This New Fairness Law?
But what if you only worked public sector jobs before you retired?
In that case, your benefits wont change.
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How Much Benefit Is Coming?
The Social Security Administration said it is evaluating how to carry out the new rules.
If this new rule applies to you, no action is needed on your part.
However, it is recommended you check that your information with the SSA is up to date.
Checkherefor how to speak with the SSA about whether or not the new law will impact you.
Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013.
He is a contributor to The Penny Hoarder.
