If a surprise payment in the $6,000 range shows up in your bank account from the Social Security Administration, its legit! NBC 5 Responds has been hearing from retirees who say they've received the extra cash, but they don't know why.
It's because of the Social Security Fairness Act, which went into effect earlier this year. The Act eliminated two prior rules that reduced social security benefits for certain retirees who also receive pension income.
About 3 million people can expect to receive the money. The average payment is $6,710.
According to the Social Security Administration, "…only people who receive a pension based on work not covered by Social Security may see benefit increases. Most state and local public employees – about 72 percent – work in Social Security-covered employment where they pay Social Security taxes and are not affected by WEP or GPO. Those individuals will not receive a benefit increase due to the new law."
The Social Security Administration is also warning about possible scams that may arise as a result of the payments.
The SSA says it will "…never ask or require a person to pay either for assistance or to have their benefits started, increased, or paid retroactively. Hang up and do not click or respond to anyone offering to increase or expedite benefits."
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