New Head of SSA. What Does This Mean for Social Security?

The Social Security Administration has a new head: businessman Frank Bisignano. Bisignano has extensive experience in the private sector as CEO of a financial tech company, Finserv, which could certainly help with the modernization of the Social Security system. However, his lack of experience in public policy has some experts concerned about the types of risks that he may take when it comes to Social Security trust fund money.

Social Security is already in financial distress, with the trust fund projected to be depleted by 2035, leading to an automatic 17% reduction in benefits unless Congress intervenes. Bisignano will have to work in conjunction with lawmakers to come up with reforms to Social Security that address the concerns over the pending shortfall.

Social Security Boost May Not Come for More Than a Year for Many Americans

Millions of retired public-sector workers, including teachers, firefighters, and police officers, may face delays of up to a year or more in receiving the benefits promised under the recently passed Social Security Fairness Act. While the new law eliminates two policies that previously reduced or blocked Social Security benefits for workers with public pensions and their surviving family members, the Social Security Administration (SSA) has stated that implementing these changes will take significant time. The SSA, already underfunded and facing a hiring freeze since November 2024, must manually adjust benefits for over 3 million people, process retroactive payments dating back to December 2023, and recalibrate future benefits. With no additional funding or staff allocated to handle the increased workload, all Social Security recipients—whether affected by the law or not—are expected to experience longer wait times and delays in services.

Signed into law by former President Joe Biden in December 2024, the Social Security Fairness Act aims to correct previous reductions in benefits, with an average expected monthly increase of $360 for more than 2.5 million recipients. Some individuals could see increases exceeding $1,000 per month, depending on their prior benefit reductions. However, the SSA warns that processing these changes will be slow and urges affected individuals to ensure their contact details are up to date on the SSA website. The agency has set up a recorded message for callers to help manage inquiries, but thousands still opt to wait for live representatives, exacerbating existing service delays. While the law brings long-overdue relief, the lack of immediate implementation means many retirees will have to wait longer than anticipated to see the financial boost.

Trump's Latest Plans When It Comes to Social Security

The future of Social Security has been a concern for those in Washington and the Americans who pay into the system for decades. In 2035, the Social Security Trust Fund is expecting to have to reduce benefits to its tens of millions of recipients. With that deadline ten years away, President Trump is formulating his plan for the funds.

Many Social Security beneficiaries have expressed concerns over other issues they may face in addition to a potential reduction in benefits in 2035. Social Security benefits are taxed on as much as 85% of the benefit depending on your total income. Is there a potential that taxes on Social Security benefits could get cut? Another concern is the annual Social Security Cost of Living Adjustment (COLA), which adjusts benefits as often as yearly for inflation. Many Social Security recipients have seen higher COLA increases during the past few years as an adjustment for the higher inflation rates seen throughout the country.