New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

How L3Harris Employees Can Benefit from the New Social Security Fairness Act

'With the passage of the Social Security Fairness Act, L3Harris employees may experience an increase in financial resources as provisions like the Windfall Elimination Provision and the Government Pension Offset are eliminated, providing greater access to Social Security benefits—an important update for those navigating retirement planning.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'L3Harris employees should take note of the Social Security Fairness Act’s impact, as the elimination of the Windfall Elimination Provision and Government Pension Offset can provide significant financial relief, particularly for those with non-covered pensions, highlighting the importance of adjusting retirement strategies in light of these changes.' – Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The key changes introduced by the Social Security Fairness Act, including the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The impact on public employees and L3Harris workers, highlighting how these changes affect pension and Social Security benefits.
Potential financial and policy implications, including concerns about Social Security fund sustainability and effects on Medicare premiums.

Major legislative changes recently may alter the outlook for many Americans, including those at L3Harris companies. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) were repealed with the signing of the Social Security Fairness Act on January 5 by former President Joe Biden. These regulations were originally intended to adjust benefits for people receiving public pensions with Social Security entitlements.

The Windfall Elimination Provision particularly affected Social Security retirement benefits for those who also received pension benefits from jobs not subject to Social Security taxes. Meanwhile, the Government Pension Offset restricted spousal Social Security benefits for people with public pensions from non-Social Security tax-paying jobs.

The elimination of these provisions, reported by the Social Security Administration, will affect about 3.2 million people.

For L3Harris companies and other eligible Americans, it could mean increased payments each month — up to USD 1,190, estimates the Congressional Budget Office.

Former Social Security Administration employee and retirement planning consultant Kurt Czarnowski said the rules were designed to create a balance between Social Security recipients and public sector workers without pensions. While reductions under WEP occurred, at least some benefit was provided to those affected. Some could lose all spousal benefit entitlements under GPO.

The impacts will be greatest for public educators and could similarly affect employees of L3Harris companies. Many educators, for example, may have contributed to Social Security through part-time jobs or summer jobs but saw their benefits cut because their primary income was from teacher pensions. Czarnowski said previous regulations disadvantaged people who helped create both systems.

But some worry that doubling benefits for millions will accelerate Social Security's dwindling pot. Current projections show the Social Security Administration can pay full benefits through 2035, minus any potential financial impact of the Social Security Fairness Act.

Public employees like teachers, firefighters, and police officers are also eligible for increased payments if they receive a pension for work not covered by Social Security. Once eligible, those beneficiaries might get a retroactive lump sum from January 2024 plus increased Social Security income.

Public workers with pensions not covered by Social Security whose spouses contributed to Social Security now can get spousal benefits. This includes possibly getting 100% of a deceased spouse's benefits or 50% at qualifying age, which may be a financial help to some.

As many beneficiaries will receive their lump sum payments by the end of March and increased monthly benefits beginning in April, the SSA said it would expedite the changes in cases that do not require manual processing.

SSA also has measures in place for people who opted out because of the impact of WEP or GPO, or who become eligible for retirement benefits, to ensure they receive accurate payment upon application. It also has information and updates on the Social Security Fairness Act.

Conclusion: while Windfall Elimination Provision and Government Pension Offset repeal provide some financial relief for many, questions remain about the long-term viability of the Social Security fund. Beneficiaries should follow up on those changes and consider them in retirement planning, including employees of L3Harris companies.

In addition, the new Social Security Fairness Act affects Medicare premiums. As Social Security benefits increase under the Act, some retirees may see changes in Medicare Part B premiums — deducted from Social Security payments — that are income-related. Considering this possible financial impact when planning for retirement healthcare is important, according to a March 2024 report by the Centers for Medicare and Medicaid Services.

This legislation, like changing a dam that diverted water from a river, lets resources flow more fairly, allowing Social Security benefits to public employees like teachers and firefighters. This adjustment corrects historical inequalities so people contributing from different job sources receive benefits corresponding to their contributions.

The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) repeals under the Social Security Fairness Act affect many retirees, particularly those with non-covered pensions. Five sources explain these changes.

Articles you may find interesting:

Sources:

1. Social Security Administration (SSA). 'Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).' Social Security Administration , 27 Feb. 2025, www.ssa.gov . Accessed 15 Apr. 2025.

2. Thrivent Financial. 'Social Security Fairness Act: How the WEP & GPO Repeal May Affect Your Benefits.' Thrivent , 27 Feb. 2025, www.thrivent.com . Accessed 15 Apr. 2025.

3. Li, Zhe. 'The Social Security Fairness Act of 2023.' Congressional Research Service , Feb. 2025, crsreports.congress.gov. Accessed 15 Apr. 2025.

4. International Association of Fire Fighters (IAFF). 'Q&A: How Will the Social Security Fairness Act Impact Me?' IAFF , 24 Jan. 2025, iaff.org. Accessed 15 Apr. 2025.

5. Horace Mann. 'Social Security Fairness Act FAQ.' Horace Mann , Feb. 2025, horacemann.com. Accessed 15 Apr. 2025.

What specific factors should L3Harris Technologies employees consider when determining the most suitable form of pension benefit at retirement? Employees of L3Harris Technologies may have various options, such as life annuities, contingent annuities, and lump-sum payouts. Understanding the implications of each option, including tax treatments and benefit guarantees, can be crucial in making a decision that aligns with long-term financial goals. It is also important to consider how the selected form may affect survivor benefits and overall retirement income planning.

Pension Options at Retirement: L3Harris Technologies employees have various pension benefit options to consider at retirement, such as life annuities, contingent annuities, and lump-sum payouts(L3Harris Technologies I…). Each option has different tax treatments, survivor benefits, and guarantees. For example, selecting a life annuity ensures a fixed monthly payment for life, while a lump-sum payout might offer more flexibility but comes with immediate tax implications. Employees should evaluate how each option aligns with their long-term financial goals and whether it provides adequate survivor protection for dependents(L3Harris Technologies I…).

How does L3Harris Technologies determine eligibility for early retirement, and what implications does this have for pension benefits? Employees should familiarize themselves with the criteria for qualifying for early retirement, including age and service requirements. Additionally, understanding the benefits that are available should retirement occur before the standard retirement age can affect financial planning, as these benefits can differ significantly from those available at normal retirement age due to reduction factors or penalties.

Early Retirement Eligibility: L3Harris Technologies determines eligibility for early retirement based on age and years of service. Employees may qualify for early retirement if they are at least 55 years old and have completed 10 years of service(L3Harris Technologies I…). Opting for early retirement can result in a reduced pension benefit due to the longer payment period. These reductions, known as early retirement penalties, affect financial planning since the payout is lower compared to waiting until the normal retirement age(L3Harris Technologies I…).

In what ways do the pension formulas at L3Harris Technologies differ, and how can employees assess which plan is most advantageous for their retirement? Employees participating in the L3Harris pension plan can choose between different formulas, such as the Traditional Pension Plan and the Pension Equity Plan. Assessing which formula may yield higher benefits involves understanding the benefits calculation processes, including how each formula accounts for years of service, salary history, and participation criteria, which can significantly impact total retirement income.

Pension Formulas: L3Harris employees can choose between different pension formulas, such as the Traditional Pension Plan and Pension Equity Plan(L3Harris Technologies I…). The Traditional Plan is based on years of service and final average pay, while the Pension Equity Plan uses a lump-sum formula that accrues value over time. Understanding how each formula calculates benefits is essential for employees to determine which plan will provide higher retirement income, depending on their service years and salary history(L3Harris Technologies I…).

How should L3Harris Technologies employees prepare for the selection of a beneficiary, and what are the potential impacts on their pension benefits? Selecting a beneficiary is an important component of retirement planning. Employees at L3Harris Technologies must understand the implications that come with adding a spouse or other individuals as beneficiaries, including the effect on benefit amounts and how beneficiary selection can influence survivor payouts. Moreover, they should familiarize themselves with the requirements for updating beneficiary information and the legal implications of such designations.

Beneficiary Selection: Choosing a beneficiary is a crucial step for L3Harris employees. Adding a spouse or another individual as a beneficiary may reduce the employee's pension benefit but ensures that a portion of the pension continues after the employee's death(L3Harris Technologies I…). Employees should be aware of the survivor benefit provisions, spousal consent requirements, and the need to regularly update their beneficiary information(L3Harris Technologies I…).

What procedures must L3Harris Technologies employees follow to appeal a denied pension benefit claim, and what timelines should they be aware of? Employees should be well-informed about the steps involved in the appeals process for denied claims, including how and when to file an appeal and the importance of providing adequate documentation. Understanding the statutes of limitations related to claims and appeals can significantly influence the outcomes for employees seeking to reinstate or secure their benefits.

Appealing Denied Claims: L3Harris Technologies employees must follow a formal process to appeal denied pension benefit claims(L3Harris Technologies I…). The process includes submitting an appeal within a specific timeframe and providing supporting documentation. It is important to be familiar with the statute of limitations and administrative remedies to ensure the best chance of success when appealing a decision(L3Harris Technologies I…).

How does L3Harris Technologies handle survivor benefits, and what actions should employees take to ensure that their surviving spouses or partners have access to these benefits? Understanding the components of survivor benefits at L3Harris Technologies is crucial. Employees should learn about the eligibility of their spouses or partners following their death, the type of benefits due, and any actions required to secure these benefits. Familiarity with the planâ€™s rules surrounding survivor benefits and timelines for elections can also affect the financial security of beneficiaries.

Survivor Benefits: L3Harris offers survivor benefits to spouses or designated beneficiaries(L3Harris Technologies I…). Employees must ensure that their spouse or partner is properly designated to receive these benefits, which may involve selecting an annuity option that provides continued payments to the survivor. Understanding the timelines for making these elections and the rules governing survivor benefits is crucial for securing financial support for loved ones(L3Harris Technologies I…).

What resources are available for L3Harris Technologies employees for receiving personalized retirement counseling, and how can these resources aid in making informed financial decisions? Employees may benefit from accessing professional counseling services or informational resources provided by L3Harris Technologies. These resources can include individual retirement planning sessions that help employees align their pension benefits with their overall retirement strategy, ensuring that they utilize their benefits effectively and are informed about their options.

Retirement Counseling Resources: L3Harris provides personalized retirement counseling services to assist employees with their pension and retirement planning(L3Harris Technologies I…). These resources include individual sessions to discuss how pension benefits fit into overall retirement strategies. By leveraging these services, employees can make well-informed decisions about their financial future(L3Harris Technologies I…).

How can employees of L3Harris Technologies find out more about their eligibility for the Cash Balance Plan and the advantages of this plan over traditional pension formulas? Employees should research what defines an "active Cash Balance Plan Participant" as well as the benefit calculations associated with it. Investigating the elements that set this type of plan apartâ€”specifically regarding lump-sum distributions and the ability to track benefitsâ€”can better inform employees about the potential advantages for their future retirement income.

Cash Balance Plan: Employees interested in the Cash Balance Plan can research its advantages over traditional pension formulas. The Cash Balance Plan allows for lump-sum distributions and provides clear benefit tracking, which can be more appealing to employees looking for flexibility and control over their retirement funds(L3Harris Technologies I…).

What impact do potential changes to the L3Harris Technologies pension plan have on current employees, and what steps should they take to stay informed about such changes? Employees should remain vigilant regarding any amendments to the pension plan that could influence their retirement benefits. This includes understanding their rights under ERISA and staying engaged with communication from L3Harris regarding plan updates, ensuring that they are equipped to make timely decisions based on the latest information.

Plan Changes: L3Harris employees should stay updated on any changes to the pension plan, which could impact their benefits(L3Harris Technologies I…). Monitoring communications from the company and understanding their rights under ERISA is essential to making timely decisions based on new plan terms or amendments(L3Harris Technologies I…).

How can employees of L3Harris Technologies contact the Benefits Service Center to address specific questions regarding their pension plan or retirement strategy? It is essential for employees seeking clarity on their pension benefits or retirement planning to know how to reach out to the L3Harris Benefits Service Center. This center acts as a vital resource, and understanding its operationsâ€”including contact times, methods of contact, and the types of inquiries that can be addressedâ€”will enable employees to receive the guidance they need regarding their benefits.

Benefits Service Center: L3Harris employees can contact the Benefits Service Center for any questions regarding their pension or retirement strategy. The center provides assistance with understanding pension benefits, resolving issues, and addressing specific inquiries related to retirement planning(L3Harris Technologies I…)(L3Harris Technologies I…).