Latest news with #GovernmentPensionOffset
Economic Times
19-06-2025
- Health
- Economic Times
US healthcare almost broke, Medicare and Social Security's trust funds will have no money by this date
ETHealthWorld The Medicare hospital insurance trust fund is expected to deplete in 2033, three years earlier than last year's projection. Social Security's combined trust funds will run out by 2034, a year earlier than previously forecast. The financial health of America's two most critical safety-net programs, Medicare and Social Security, is deteriorating faster than expected. An annual report released Wednesday, June 18, by program trustees shows that rising health care costs, demographic pressures, and a new law expanding Social Security benefits have accelerated the timeline for when the programs become out of money and cannot pay full benefits. The Medicare hospital insurance trust fund is now expected to run out of money in 2033, three years earlier than projected just last year. Meanwhile, Social Security's combined trust funds, which support retirement and disability benefits, will be depleted by 2034, a year earlier than previously forecast. At that point, beneficiaries would see a significant reduction in monthly payments unless Congress updated projections concern the long-term solvency of these programs, which tens of millions of Americans depend on for health care and income security. The report highlights that Medicare's hospital insurance (Part A) trust fund faces a steeper decline due to higher-than-expected health care expenses in 2024. The fund posted a surplus of $29 billion last year, but deficits are expected to begin after 2027, leading to full depletion by exhausted, Medicare will only be able to cover 89% of inpatient care costs, such as hospital visits, hospice services, and post-hospital nursing care. Currently, about 68 million people are enrolled in Medicare, including Americans over age 65 and those with severe illnesses or Security's combined trust funds, which support retirees and disability recipients, are projected to be depleted by 2034, one year earlier than last year's forecast of 2035. After that date, the program would only be able to pay 81% of scheduled benefits, if no changes are made. This accelerated timeline results in part from the Social Security Fairness Act passed in January 2025. This law repealed the Windfall Elimination Provision and Government Pension Offset, increasing benefits for some workers. Trustees confirmed that this legislative change worsened the trust fund's depletion. Trustees of both programs urged lawmakers to act swiftly. 'Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation,' the report said. Frank Bisignano, the newly appointed Social Security Commissioner, said that stabilizing the trust funds is a top priority for the Trump administration, which has so far pledged not to cut benefits. Despite this, experts warn that without new revenue or cost controls, both programs risk serious disruption. Nancy Altman of Social Security Works argued that lawmakers must decide: raise revenue or cut benefits. 'There are two options for action,' she said. 'Any politician who doesn't support increasing Social Security's revenue is, by default, supporting benefit cuts.' AARP CEO Myechia Minter-Jordan added that with over 69 million Americans relying on Social Security, 'the stability of this vital program only becomes more important.'The Congressional Budget Office has repeatedly warned that an aging population is the main driver of rising debt related to Social Security and Medicare. The last major Social Security reform occurred about 40 years ago, when the eligibility age was raised from 65 to 67. Medicare eligibility remains at age legislative proposals are currently being considered to address the trust funds' financial outlook. However, none have yet been passed.
Yahoo
06-06-2025
- Business
- Yahoo
Kokua Line: Why is Medicare double-billing some premiums?
Question : Regarding the Social Security Fairness Act, I am getting my money but now there's a problem with my Medicare premiums. Is anyone else having these problems ? Are they related ? Answer : Yes, problems with Medicare premiums, including double-billing, may be related to how payments are processed now that you are no longer penalized by the Windfall Elimination Provision or Government Pension Offset, which the Social Security Fairness Act repealed. After the repeal, nearly 3 million people became eligible for Social Security benefits, or for higher monthly payments if they were previously eligible. Social Security and Medicare are separate programs that work together. For many retirees, the Social Security Administration automatically deducts Medicare premiums from monthly Social Security benefits. Prior to receiving Social Security, retirees affected by the SSFA would have paid their Medicare premiums a different way, and issues have emerged during the transition. The SSA describes problems and solutions on its website, but does not say how many people are affected. Here are details from ; you may need to take action to correct your problem. Q : 'What should I do if my Medicare premiums are being deducted from my Social Security benefit and my Office of Personnel Management annuity ?' A : 'The Centers for Medicare & Medicaid Serv ices is working on this issue. Anyone who had too many Medicare premiums withheld will receive a refund. You do not need to call, but if you have questions on this specific issue, contact 1-800-MEDICARE (1-800-633-4227 ).' Q : 'What happens if my Medicare premium is deducted from my Civil Serv ice Retirement System annuity ?' A : 'If a person has had their premiums deducted from their CSRS annuity, and then applies for Social Security benefits, SSA will tell the person that their premiums will now be deducted from their monthly Social Security benefits. SSA's notice will include this information. In most cases, the premium refund will be included in the back payment from SSA. If not, the refund will be issued at the end of the calendar quarter. If you do not receive a premium refund within six weeks of the close of the calendar quarter, please contact SSA. Please contact SSA if you have any questions about your premiums.' Q : 'What if a person pays their Medicare premium directly to the Centers for Medicare & Medicaid Serv ices due to the Windfall Elimination Provision or Government Pension Offset reduction ?' A : 'SSA recommends that, until they get a notice from SSA, the person should continue to follow the instructions on the Medicare premium bill and pay the bill to ensure their Medicare coverage does not stop. SSA will send a notice telling people when their Social Security record is updated. Once the person begins receiving a Social Security benefit, the Medicare premium will be deducted from their monthly payment. If the benefit is not enough to cover the Medicare premium, the person will be billed for the remainder. SSA's notice will include this information. 'If the person prepaid their premiums to the Centers for Medicare & Medicaid Services, and SSA tells them that their premiums will now be deducted from their monthly Social Security benefits, they will receive any applicable refund. SSA's notice will include this information. 'You may need to take action. For people who pay their Medicare premium using Automated Clearing House, also known as Medicare Easy Pay or Online Bill Payment : Once SSA notifies the person that they will receive a benefit increase, the Medicare premium will automatically be deducted from their monthly Social Security payment. 'For people using Medicare Easy Pay : They should arrange to stop the ACH payments by completing the Authorization Agreement for Preauthorized Payments form (SF-5510 ) and sending to the address on the form or online at. Both options are located at. 'For people using Online Bill Payment : If a person is paying their Medicare premiums through their bank's online bill payment service, they should contact their bank to stop their online bill payments.' 'Call 1-800-MEDICARE (1-800-633-4227 ) for assistance.' Q : What is going in where the movie theater used to be at Koko Marina ? There is construction work going on. A : Negotiations are underway with multiple potential tenants for that space and Koko Marina Center's management office hopes to announce details within the next three months, the leasing agent said Thursday. For now, there's nothing official to publicly report. Ongoing interior demolition work is taking the space to 'shell condition ' for new tenants once they are finalized, she said. The movie theater, formerly an anchor tenant of the Hawaii Kai shopping center, closed July 30, 2023.------------Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813 ; call 808-529-4773 ; or email.------------
Yahoo
04-06-2025
- Business
- Yahoo
Social Security says 2.5 million retroactive payments processed so far
The Social Security Administration (SSA) has processed 2.5 million retroactive payments for teachers, firefighters, police officers and others with public pensions who were previously locked out of retirement benefits, the agency said last week. Signed into law by President Biden in January 2025, the Social Security Fairness Act requires the agency to adjust benefits for 3.2 million people, including future and past benefits. So far, Social Security has completed 90% of its caseload, according to its May 27 update. Payments are going to public pension holders previously barred from collecting full benefits under the federal retirement program due to two federal policies: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act ended these provisions, opening the door for millions to receive retroactive payments dating back to January 2024. December 2023 was the last month the WEP and GPO applied, according to the SSA. The agency did not immediately respond to CBS MoneyWatch's request for comment. If you're eligible for these payments, read on for the latest from the SSA. When will I get my retroactive payment? The agency started issuing payments on Feb. 25. According to the SSA, beneficiaries should have received a one-time retroactive payment deposited into the bank account the agency has on file for them by the end of March 2025. In terms of the new monthly benefits, most eligible parties should have seen payment increases starting in April. There's a one-month lag for Social Security payments, so the April payments reflected March's benefit. What if I haven't gotten my payment yet? The SSA previously said that most Americans would have to wait up to a year or longer to receive their benefits. While the agency has been able to expedite payments using automation, more complicated cases need to be processed manually and will take longer as a result, according to its website. The SSA said it expects all beneficiary records to be updated by November 2025. Those eligible who have still not received their payment can check account or call 1-800-772-1213 to make sure the SSA has the right address and direct deposit information for them on file. "Ensuring that SSA has the correct information allows you to get any retroactive benefits and your new benefit amount quicker," the agency says in its update. There are still 900,000 Social Security Fairness Act cases which must be completed by hand, USA Today recently reported. SSA employees told the news outlet that they have been directed to prioritize these cases over their other work. How much will benefits increase? The amount of the added payments hinges on a few factors, such as the type of Social Security benefit and pension a person receives. Some people will see "very little" adjustments, while others could see over $1,000 each month, according to the SSA website. How will I know if my monthly benefit was adjusted? Any beneficiaries who receive a retroactive payment, or a monthly benefit adjustment, will receive a mailed notice from Social Security explaining the change. To learn more about your eligibility and how the Social Security payments work, visit the Social Security Fairness Act website. What if I never applied for retirement? If you never applied for retirement — or a spouse's benefits — due to the federal laws in place before the Social Security Fairness Act was passed, you may need to file an application. To do so, visit As of the week ending May 23, the agency has received over 200,000 new applications for benefits since the law passed, and has processed 87% of them, according to the SSA website. Sneak peek: Where is Jermain Charlo? Baldwin grills McMahon on unallocated funds for students, schools, approved by Congress Hegseth orders Navy to rename USNS Harvey Milk, Jeffries calls it "a complete and total disgrace"
CBS News
04-06-2025
- Business
- CBS News
Social Security says 2.5 million retroactive payments have been processed. Here's what to know.
The Social Security Administration (SSA) has processed 2.5 million retroactive payments for teachers, firefighters, police officers and others with public pensions who were previously locked out of retirement benefits, the agency said last week. Signed into law by President Biden in January 2025, the Social Security Fairness Act requires the agency to adjust benefits for 3.2 million people, including future and past benefits. So far, Social Security has completed 90% of its caseload, according to its May 27 update. Payments are going to public pension holders previously barred from collecting full benefits under the federal retirement program due to two federal policies: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act ended these provisions, opening the door for millions to receive retroactive payments dating back to January 2024. December 2023 was the last month the WEP and GPO applied, according to the SSA. The agency did not immediately respond to CBS MoneyWatch's request for comment. If you're eligible for these payments, read on for the latest from the SSA. When will I get my retroactive payment? The agency started issuing payments on Feb. 25. According to the SSA, beneficiaries should have received a one-time retroactive payment deposited into the bank account the agency has on file for them by the end of March 2025. In terms of the new monthly benefits, most eligible parties should have seen payment increases starting in April. There's a one-month lag for Social Security payments, so the April payments reflected March's benefit. What if I haven't gotten my payment yet? The SSA previously said that most Americans would have to wait up to a year or longer to receive their benefits. While the agency has been able to expedite payments using automation, more complicated cases need to be processed manually and will take longer as a result, according to its website. The SSA said it expects all beneficiary records to be updated by November 2025. Those eligible who have still not received their payment can check account or call 1-800-772-1213 to make sure the SSA has the right address and direct deposit information for them on file. "Ensuring that SSA has the correct information allows you to get any retroactive benefits and your new benefit amount quicker," the agency says in its update. There are still 900,000 Social Security Fairness Act cases which must be completed by hand, USA Today recently reported. SSA employees told the news outlet that they have been directed to prioritize these cases over their other work. How much will benefits increase? The amount of the added payments hinges on a few factors, such as the type of Social Security benefit and pension a person receives. Some people will see "very little" adjustments, while others could see over $1,000 each month, according to the SSA website. How will I know if my monthly benefit was adjusted? Any beneficiaries who receive a retroactive payment, or a monthly benefit adjustment, will receive a mailed notice from Social Security explaining the change. To learn more about your eligibility and how the Social Security payments work, visit the Social Security Fairness Act website. What if I never applied for retirement? If you never applied for retirement — or a spouse's benefits — due to the federal laws in place before the Social Security Fairness Act was passed, you may need to file an application. To do so, visit As of the week ending May 23, the agency has received over 200,000 new applications for benefits since the law passed, and has processed 87% of them, according to the SSA website.
Time of India
04-06-2025
- Business
- Time of India
Social Security Fairness Act big update given on expanded benefits. Here's how it will impact millions of Americans
The Social Security Administration (SSA) has issued an update for those who have not yet received expanded benefits following the passage of the Social Security Fairness Act earlier this year, reports NewsWeek. The SSA has now processed about 91% of cases related to a new law that is prompting higher benefits and lump-sum retroactive payments for nearly 3 million people, according to a new update from the agency. The Social Security Fairness Act removed two provisions- the Windfall Elimination Provision , or WEP, and the Government Pension Offset , or GPO- that previously reduced benefits for individuals who also receive income from public pensions that did not require the payment of Social Security payroll taxes, according to CNBC. Lawmakers have passed the bipartisan Social Security Fairness Act, repealing two provisions that had reduced retirement benefits for certain groups, including teachers, firefighters, police officers, some federal employees, and their spouses. As a result, approximately 2.8 million individuals are now eligible to receive their full Social Security benefits . Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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According to the Social Security Administration, 91% of those affected are already receiving full payments. However, a number of more "complex cases" are still being processed. As of April, the SSA reported issuing over $14.8 billion in retroactive payments to eligible recipients. Live Events Social Security Fairness Act benefits increase The Windfall Elimination Provision (WEP) has reduced Social Security benefits for individuals who receive pensions from public-sector jobs—such as state and federal positions—that did not require Social Security payroll tax contributions. This reduction applies even if the individual also worked in jobs covered by Social Security and qualified for benefits. Similarly, the Government Pension Offset (GPO) reduces spousal or survivor benefits for retired federal, state, and local government employees who did not pay into Social Security through payroll taxes. "For the many complex cases that cannot be processed automatically, additional time is required to manually update the records and pay both retroactive benefits and the new benefits amount," the SSA said in an update on its website. "We are expediting these cases now." ALSO READ: Heat alert in US: Summer 2025 forecast for America is out and is worrisome. Check which cities will bear the maximum brunt Updated benefit amounts, including retroactive payments dating back to December 2023, began rolling out in April. While the Social Security Administration (SSA) has completed over 90% of these adjustments, some complex cases are still being processed. If your payment is still pending, you will receive a notice from the SSA. Status of payment delays According to USA Today, newly appointed SSA Commissioner Frank Bisignano has instructed staff to resolve all remaining Social Security Fairness Act claims by July 1. These cases have been given top priority over other customer service requests. To meet the deadline, some SSA employees have been offered overtime to work weekends. ALSO READ: Elon Musk attacks Trump's 'big, beautiful bill': Tesla CEO's sudden outburst explained "SSA has made significant strides in implementing the Social Security Fairness Act, having paid over $14.8 billion in retroactive payments to more than 2.2 million individuals affected by the Windfall Elimination Provision and Government Pension Offset. Under President [Donald] Trump's leadership, the agency's original estimate of taking a year or more to issue payments now will apply to only complex cases that cannot be processed by automation," the agency said. The SSA said on its website that retroactive payments and newly adjusted benefit amounts are being released "as we process each case" with the expectation that "all beneficiary records will be updated by early November 2025."
