Social Security quietly implemented a rule change that may put thousands of dollars into the pockets of many retired divorcees and widows.
The rule change mainly applies to widows and divorced spouses whose spouses worked in the public sector and did not always pay Social Security taxes.
This can leave a gap in how benefits are calculated because one spouse might have spent a career working in public service while the other paid into Social Security.
According to the Social Security Administration, these benefits were previously reduced if the spouse who worked in the public sector received a pension.
In some instances, those reductions in benefits lowered or completely eliminated spousal or survivor benefits.
Now, those reductions have been removed thanks to this rule change.
While not every surviving spouse or divorced person will see an increase in benefits due to their work history and pension, some will.
Here’s why payments are increasing and what you should do if you are a surviving spouse or divorcee eligible for increased Social Security benefits.
These Social Security payments are increasing for divorced spouses and widows because the reductions in Social Security benefits for people who receive public pensions no longer apply, the Social Security Administration said.
These groups may see their payments increase in two ways: higher monthly Social Security payments and lump-sum deposits.
Either way, the payments cover amounts that had previously been reduced.
Payments can range from a small sum to more than $1,000 each month, according to the Social Security Administration.
Some eligible spouses have already seen their benefits increase and therefore don’t need to take any action.
However, some cases may still be pending, delaying spouses’ receipt of funds.
Those who may be affected should contact their local Social Security office to confirm whether their benefits have been updated and whether they are receiving the proper payments.
Read the original article on NJ.com. Add NJ.com as a Preferred Source by clicking here.
