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They fought for Social Security Fairness Act. Now they wait for benefit increases

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President Joe Biden after he signed the Social Security Fairness Act at the White House on Jan. 5 in Washington, D.C. 

Kent Nishimura | Getty Images News | Getty Images

The biggest changes to Social Security in years were signed into law on Jan. 5.

For more than 3.2 million individuals, that will mean bigger benefit checks. And in some cases, the change will qualify them for Social Security benefits.

The new law, the Social Security Fairness Act, repeals two provisions that previously reduced Social Security benefits for individuals who receive pension income based on work where employers were not required to withhold Social Security payroll taxes.

They were the Windfall Elimination Provision, which was enacted in 1983, and the Government Pension Offset, which was signed into law in 1977. They were federal laws that reduced Social Security benefits for people who received pensions from noncovered employment. Both were repealed by the Social Security Fairness Act.

Among those affected include certain teachers, firefighters and police officers, federal employees, and workers covered by a foreign social security system.

Benefit increases may range from “very little” to more than $1,000 per month, according to the Social Security Administration.

Those increases apply to future monthly checks, as well as retroactive benefits payable since January 2024.

The Social Security Administration “expects that it could take more than one year to adjust benefits and pay all retroactive benefits,” the agency says on its website.

Nevertheless, advocates who fought for the change for years — some of whom will see their own benefits increase — say the signing of the bill was a victory, even as many beneficiaries face an indefinite wait for the extra money.

‘It’s going to take some time,’ a former teacher said of the changes

Roger Boudreau, a 75-year-old former English teacher and president of the Rhode Island American Federation of Teachers retirees chapter, had been to the White House before through his work in union activism over the past 50 years.

But witnessing the signing of the Social Security Fairness Act in January was the “highlight of my life,” he said.

When Boudreau dies, he hopes his role as a founding member of the National WEP/GPO Repeal Task Force is included in his obituary.

“It was such an incredibly important piece of legislation that affected so many people who’ve been so deeply wronged for so many years,” Boudreau said. (To be sure, many retirement policy experts oppose the new policy.)

Boudreau estimates he personally has been losing about $5,000 per year in retirement due to a penalty of about 40% on his earned benefits for the past decade.

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Boudreau taught for 30 years on a variety of subjects including world and British literature and earned a pension toward retirement.

To supplement his income, he took on a variety of extra jobs where he paid into Social Security, working as a taxi driver, selling swimming pools and helping at bakeries over the holidays.

“When I started teaching in 1971, my salary was $7,000 [a year],” Boudreau said. “I had an infant child. If I had two, I would have been eligible for food stamps.”

In addition to the extra work while teaching, he also paid into Social Security when he worked in high school and college. If Boudreau had two more years of earnings, he would have been able to escape the penalty to his benefits, he said.

Now, he’s waiting on the Social Security Administration to find out how large his benefit increases will be.

“We understand that it’s going to take some time,” said Boudreau, who also serves as a task force liaison to the American Federation of Teachers.

In the meantime, the group is advising its retirees to make appointments with their local Social Security office to make sure their information is up to date.

Firefighter hoped benefits would help in retirement

Carl Jordan, a retired Canton, Ohio, fire captain, first found out his Social Security benefits would be reduced when he looked into retiring.

The reductions were a surprise to Jordan, who over a 33-year career started as a firefighter and worked his way up to serve as a medic and finally a captain.

While he earned a pension from that work, he also paid into Social Security through other work. He started as a phlebotomist working in blood donation and then trained as a apheresis technician to collect blood products for the treatment of cancer and other diseases.

“The whole reason for me working the second job was it contributed to the community and it also aided me in taking care of my family at the time,” Jordan said.

“Firefighter wages weren’t that great, and I had hoped that Social Security would supplement my retirement income when I got there,” he said.

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Today, Jordan, 73, estimates the reductions have cost him about 2½ years on his mortgage, or around $27,000 excluding interest.

The extra Social Security benefit money will help him pay off that mortgage a little sooner than expected, as well as pay for home improvements, he said.

Still, he doesn’t know exactly how much more benefits he will receive.

Jordan, who attended the January bill signing in Washington, D.C., spoke with a Social Security administrator there who said they could not provide more information on timing or the amount of benefit increases. A month later, he is still waiting for more information from the agency.

Nevertheless, Jordan said he was proud to witness a change he never expected to see in his lifetime, even after advocating for it for almost 16 years.

“To be there representing the profession that I had spent my life serving was an experience everyone should have,” Jordan said.

18-year-old lobbied on behalf of his grandmother

Eliseo Jimenez, who walked from Lubbock, Texas to Washington, DC, to discuss Social Security issues with government officials, leaves after being introduced by President Joe Biden during a signing ceremony for the Social Security Fairness Act at the White House. 

Chris Kleponis | Afp | Getty Images

At 18 years old, Eliseo Jimenez of Lubbock, Texas, may be the youngest to have lobbied for the Social Security Fairness Act.

His grandmother, a former teacher, had to rely mostly on her own pension as her source of income before the new law. Other family members who work in law enforcement were also affected by the provisions.

To call attention to the need for change, Jimenez last summer spent 40 days walking from Texas to Washington, D.C. Because he was under 18 at the time, he was not able to check into hotels or motels on his own, which forced him to sleep outside for several nights.

His efforts helped bring attention to the issue, he said.

“I had a lot of people email me and call me, supporting me and supporting the bill itself,” Jimenez said.

Last month, Jimenez returned to Washington, D.C., again, this time to witness the signing of the Social Security Fairness Act. At the event, then President Joe Biden led a chorus of other lawmakers and attendees to sing “Happy Birthday” to Jimenez. It was “pretty cool,” he said.

Since the changes became law, he has heard from his grandmother, neighbors and residents from other states like Virginia and Tennessee who are affected.

“They said it’s like amazing,” Jimenez said. “It’s life-changing.”

The win has inspired Jimenez, a high school senior who plans to attend college next year, to keep pushing for Social Security reform. He plans to complete another walk in Texas next month to call attention to the issue.

“I want to keep on being involved,” Jimenez said. “I want to keep on advocating for it.”

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Disability advocates sue Social Security and DOGE to stop service cuts

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A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. 

Saul Loeb | Afp | Getty Images

A group of disability advocates filed a federal lawsuit against the Social Security Administration and the so-called Department of Government Efficiency on Wednesday aimed at stopping cuts to the agency’s services.

Recent changes at the Social Security Administration under DOGE — including staff reductions, the elimination of certain offices and new requirements to seek in-person services — have made it more difficult for individuals with disabilities and older adults to access benefits, the lawsuit argues.

The complaint was filed in the U.S. District Court for the District of Columbia.

The plaintiffs include the National Federation of the Blind, the American Association of People with Disabilities, Deaf Equality, the National Committee to Preserve Social Security and Medicare, the Massachusetts Senior Action Council and individual beneficiaries.

“The defendants’ actions are an unprecedented and unconstitutional assault on Social Security benefits, concealed beneath the hollow pretense of bureaucratic ‘reform,'” the complaint states.

In nine weeks, the new administration has “upended” the agency with “sweeping and destabilizing policy changes,” the plaintiffs claim, that have shifted agency functions to local offices while slashing telephone services.

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“The result is a systematic dismantling of SSA’s core functions, leaving millions of beneficiaries without the essential benefits they are legally entitled to,” the lawsuit complaint states.

The “mass restructuring” of the agency is unlawful and violates the Rehabilitation Act and the Administrative Procedure Act, the lawsuit argues. The changes also violate multiple constitutional provisions, including the First Amendment right to petition the government for redress of grievances, according to the plaintiffs.

With 1.1 million disability claims pending, the recent actions could also be life threatening to individuals who are dying or going bankrupt while waiting for decisions, they allege.

The Social Security Administration did not respond to CNBC’s request for comment.

“President Trump has made it clear he is committed to making the federal government more efficient,” White House spokesperson Liz Huston said in an email statement. “He has the authority to manage agency restructuring and workforce reductions, and the administration’s actions are fully compliant with the law.”

Lawsuit alleges reform is ‘administrative vandalism’

People hold signs during a protest against cuts made by U.S. President Donald Trump’s administration to the Social Security Administration, in White Plains, New York, U.S., March 22, 2025. 

Nathan Layne | Reuters

The Social Security Administration sends monthly checks to around 73 million Social Security and Supplemental Security Income beneficiaries.

DOGE, which is not an official government entity, has been tasked with cutting “waste, fraud and abuse” within the federal government. President Donald Trump issued an executive order creating DOGE on Jan. 20, the same day he was inaugurated.

Since then, the Social Security Administration has cut 7,000 employee positions and closed the Office of Civil Rights and Equal Opportunity and the Office of Transformation. The Office of Civil Rights and Equal Opportunity handled the agency’s equal employment opportunity and civil rights programs. The Office of Transformation was responsible for coordinating customer service-related initiatives like adding the ability to use digital signatures and electronic documents.

The Social Security Administration has also changed its identity proofing policies for claiming benefits and changing direct deposit information that is expected to require more individuals to visit the agency’s offices in person.

The agency has updated its policy, allowing individuals applying for Social Security Disability Insurance, Medicare, or Supplemental Security Income who cannot use a personal my Social Security account to complete their claim entirely over the telephone, starting April 14. 

The reforms amount to the dismantling of “core functions of SSA, abandoning millions of Americans to poverty and indignity,” according to the plaintiffs’ complaint.

“What the defendants frame as ‘reform’ is, in truth, administrative vandalism,” the lawsuit states.

Beneficiaries face long waits, overpayment issues

The plaintiffs include seven individuals whose experiences, including long customer service waits and, in some cases, demands to repay large sums to the Social Security Administration, are detailed in the complaint.

One plaintiff, Treva Olivero, who has been legally blind since birth, was informed in March 2024 that she had been overpaid Social Security disability insurance benefits for five or six years, prompting the agency to demand she repay more than $100,000, according to the complaint.

Olivero’s Medicaid coverage was also terminated soon after, which left her without income and health coverage. She has since been in an “ongoing struggle” to have her disability benefits reinstated, while also facing almost $80,000 in medical debt, according to the complaint.

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Another plaintiff, Merry Schoch, who received Social Security disability insurance for many years, returned to work to help pay for large medical bills after she was hit by a waste management truck in 2022. She reported her income to the Social Security Administration, and the agency made no changes to her benefit payments, according to the complaint.

Two years later, Schoch stopped working and reported her unemployment to the Social Security Administration. In August 2024, the agency then terminated her benefits and informed Schoch that she owed $30,000 for the disability benefit payments she received while working full time, according to the complaint.

Last September, Schoch was informed she could reapply for benefits. However, she has since struggled to get in touch with the agency over the phone, online and in person. 

Both Olivero and Schoch are members of the National Federation of the Blind, which is also a plaintiff.

The plaintiffs want the court to reverse the Social Security Administration’s recent reforms, including staff reductions, closures of certain offices and policies requiring in-person appointments.

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Amid trade turmoil, ‘you do not want to time the market’

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Pres. Trump unveils sweeping tariffs: Here's what to know

As President Donald Trump rolls out sweeping new tariffs on goods imported into the United States, Americans are growing increasingly pessimistic about their financial fate.

Consumers worry that the duties will cause inflation to flare up again, while investors fear that higher prices will mean lower profits and more pain for the battered stock market

As of Thursday morning, futures tied to the Dow Jones Industrial Average were down 1,200 points, or 2.8%. S&P 500 futures sank 3.4%, and Nasdaq-100 futures lost 4%.

But sharp drops — or sudden spikes — in the market are to be expected, according to Jean Chatzky, CEO of HerMoney.com and host of the podcast HerMoney with Jean Chatzky.

“With these volatile markets, you do not want to time the market,” she said of the old adage. “Timing the market doesn’t work — it’s time in the market.”

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Trade tensions, inflation and concerns about a possible recession have undermined consumer confidence across the board, several studies show.

Still, it’s normal for most Americans to feel unnerved during heightened volatility, Chatzky said.

“There’s very little doubt that consumers are feeling nervous, maybe more nervous than we’ve felt in quite some time,” she said.

Committing to setting money aside in a high-yield savings account, whether by scaling back on dining out or rideshare expenses, will help regain some financial control, Chatzky said.

Top-yielding online savings accounts currently pay 4.4%, on average, well beyond the savings account rates at some of the largest retail banks, which average just 0.41%.

“Taking action is the best way to feel more resilient,” she said.

It’s understandable why some may be hesitant to continue investing, however, when you are investing for the long term, a down market is an opportunity for dollar-cost averaging, which helps smooth out price fluctuations in the market, Chatzky said.

This is also a good time to check your investments to make sure you are still allocated properly and rebalance as needed, so you are not taking on more risk that you are comfortable with, she added.

Timing the market is a losing bet

Talk yourself down from making any sudden financial moves, Chatzky advised.

Trying to time the market is almost always a bad idea, other financial experts also say. That’s because it’s impossible to know when good and bad days will happen.

For example, the 10 best trading days by percentage gain for the S&P 500 over the past three decades all occurred during recessions, often in close proximity to the worst days, according to a Wells Fargo analysis published last year.

And, although stocks go up and down, the S&P 500 index has an average annualized return of around 10% over the past few decades.

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How to file for a free tax extension if you can’t make April 15 deadline

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Galina Zhigalova | Moment | Getty Images

If you can’t file your taxes by the April 15 deadline, there’s a free, easy way to submit a federal tax extension online, experts say.  

Nearly 1 in 3 American admit that they procrastinate when it comes filing their taxes, according to a January survey of more than 1,000 U.S. filers from IPX1031, an investment property exchange service. In addition, about 25% do not feel prepared to file their taxes, the survey found.

As of March 21, the IRS received roughly 80 million individual returns of the 140 million expected this filing season, the agency’s latest reporting shows.

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Many natural disaster victims have an automatic tax extension, which varies by jurisdiction. Military members serving in a combat zone also have more time to file. 

However, the federal tax deadline for the majority of taxpayers is April 15. It’s possible to push that due date to Oct. 15 by filing for an extension.

But “it’s an extension to file, not an extension to pay,” said Jo Anna Fellon, managing director at financial services firm CBIZ.

“It’s an extension to file, not an extension to pay.”

After the tax deadline, you will start incurring the failure-to-pay penalty of 0.5% of your unpaid taxes for each month or partial month that your taxes remain unpaid. The failure-to-pay penalty has a maximum charge of 25% of your unpaid taxes.

That’s cheaper than the failure-to-file penalty, which applies when you don’t submit your return by the deadline. The failure-to-file penalty is 5% of unpaid taxes monthly, also limited to 25%.

But you’ll also owe interest on your unpaid balance, which is currently 7% and accrues daily after April 15.

You can estimate your taxes owed by creating a “pro forma return” — or mock version of your filing — using as many tax forms as possible, Fellon said.

The ‘easiest way’ to file an extension

There are a few free options to file a tax extension.

For federal taxes, you can complete Form 4868 and mail it to the IRS. But it’s better to file digitally to avoid processing delays amid the agency’s shrinking workforce, experts say. Paper filing can also increase fraud risk, they say.

The “easiest way” is by choosing “extension” when making a payment for 2024, which automatically submits Form 4868, according to Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

“It takes all of five minutes,” and you can double-check the transaction via your IRS online account, he said.

IRS Direct Pay

Internal Revenue Service

Alternatively, you can file your extension for free online via IRS Free File, a public-private partnership between the IRS and several tax software companies.   

For the 2025 season, you can use IRS Free File for returns if your adjusted gross income, or AGI, was $84,000 or less in 2024. But there’s no income limit to file an extension, Lucas said.

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