Biden signs Social Security Fairness Act - impact on credit unions/ members

Rhian Horgan, Silvur Founder and CEO

Today, President Biden signed the Social Security Fairness Act. Millions of teachers, police officers, firefighters and public servants now have full access to Social Security Benefits. In your home state of CA this rule impacts 100% of teachers and 54% of public servants!

Why this matters for Credit Unions: Impacted members will be starting their Social Security benefits for the first time or seeing material increases (eg direct deposit opportunity). Additionally all impacted members will receive a lump sum payment for 2024 estimated at $12,000+ (eg cd opportunity). This primer explains how to guide members to direct direct deposit their Social Security at the credit union

Who This Impacts
Historically teachers, police officers, firefighters and public servants received pensions in lieu of Social Security. However the rules also made them ineligible for full spousal benefits and often reduced their post- public service Social Security benefits earned through private sector employment.

Location matters
The rules vary by state, municipality and school district, based on the retirement program.

• Teachers: Teachers who worked in most school districts in Alaska, California, Colorado, Connecticut, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, Rhode Island, and Texas are impacted.
• Public service: The rules vary based on the local retirement systems but mostly impacted municipal workers, police and firefighters. Check out this impact map

How Do Members Collect Their New Benefit
SSA has communicated that if members have applied previously for SSA, SSA will make the updates automatically. For members who have not filed for SSA they will need to apply via SSA.gov or through their local office. The timing of the new payments (including the 2024 lump sum) has not been announced yet. Direct deposit is required to receive payments.

Check out Silvur's white paper on 2025 Social Security Fairness Act.

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