Biden signed a big Social Security change into law — are you affected? Here's what you can do if it impacts you

Millions of retired public service workers could profit from the bill. Getting a bigger check every month sounds exciting. But do you qualify? And if so, how will the change affect you?

The big changes

The act repeals two regulations — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

The WEP, enacted in 1983, reduced previously earned benefits for retired workers who received pensions from employers that didn't withhold Social Security taxes, including public service workers. The GPO, adopted in 1977, reduced spousal benefits for those who received retirement or disability income from government-based work that didn't require the payment of Social Security taxes. The purpose of these two regulations was to reduce any unintended advantage workers might have received raking in a pension on top of benefits.

Now, these workers won’t receive the same reduction benefits. If you’re a former public service employee or the spouse or widow of one, your monthly Social Security check could be larger.

What to do next

Right now, if you’re one of the lucky beneficiaries, just sit tight and wait for the changes to take effect. In fact, you may have already received a lump-sum payment for benefits retroactive to last year. Those eligible for retroactive payments began receiving them Feb. 25, with the remainder expected to be sent out by the end of March.

Most who are set to get a higher monthly benefit will begin to receive boosted payments by April. The Social Security Administration (SSA) is also mailing out notices to anyone whose benefit is adjusted or received retroactive payments explaining the situation.

If you’re not sure you qualify for these added benefits, you can contact the agency. But if you didn't receive a retroactive payment you were expecting, the SSA had urged people wait until April to make inquiries. Similarly for those who aren't getting a boosted check, the SSA suggested waiting until after receiving April’s payment to contact them.

In the meantime, you may want to consider what to do with the added benefits, which were estimated to be an average $360 increase for retired workers (more for surviving spouses). If you’ve been operating without an emergency fund, now may be the time to build one. This can help protect you from an unexpected expense in the future. You can also look at paying down any high-interest debt.

Whatever you want to do with the money, think carefully about how you can put it to use best. That, and whether you may need to alter the amount you need to withdraw from your other accounts.