It's Official: 3.2 Million Americans Will Receive Bigger Social Security Checks -- but There's a Catch

Social Security's 2.5% cost-of-living adjustment (COLA) for 2025 was underwhelming, to say the least. It added just $49 to the average monthly check, though many seniors saw their expenses rise more than that over the past year.

Unfortunately, future COLAs are the only benefit increase most retirees can look forward to, and the next one won't arrive until January 2026. However, a recent change in federal law will boost the monthly checks of a select group of 3.2 million Americans.

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The Social Security Fairness Act will increase benefits for many government workers

In his last days in office, President Biden signed the Social Security Fairness Act, a law passed with bipartisan support that repealed two key Social Security provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP impacted retired workers while the GPO focused on spouses of those workers, but both essentially did the same thing: They reduced the benefits these individuals were eligible for because the workers had accrued non-covered pensions during their careers.

Non-covered pensions are pensions from employers that don't withhold money for Social Security taxes. The groups who were affected included many teachers, police officers, and firefighters, as well as some federal employees. Spouses or dependents claiming benefits on the work records of these employees were impacted as well.

The Social Security Fairness Act repealed the WEP and GPO, and are effective for all benefits after December 2023, so not only are the 3.2 million affected Americans eligible for larger checks going forward, but they're also owed some back benefits if they claimed Social Security before the new law went into effect.

The exact sizes of the benefit increases will vary by individual, depending on the type of benefit they qualify for, the worker's income history, and how much the WEP or GPO reduced their checks. For some, the change will be small, while others could get an additional $1,000 or more per month.

Don't expect to see those extra benefits anytime soon

Though the Social Security Fairness Act is now law, a lot of its details still need sorting out. It will be up to the Trump administration to figure out how to adjust the relevant benefits to ensure all affected beneficiaries get the correct amount going forward. This will take some time.

The Social Security Administration expects it could take more than a year to adjust all affected Americans' benefits and pay all retroactive benefits. So it could be 2026 before you'll see any of that extra money if you're one of the 3.2 million entitled to it. Once the change takes effect for you, your monthly checks will increase and you'll likely get a one-time payment for any applicable retroactive benefits.

In the meantime, those already on Social Security should verify that the Social Security Administration has their updated mailing address and direct deposit information. The easiest way to do this is through your my Social Security account. If you haven't already created one, you'll have to answer some identity verification questions to set it up, but afterward, you should be able to log in with a username and password.

As the Social Security Administration works out the logistics of implementing the Social Security Fairness Act, it will share the details on its website. Keep an eye out for further information. You can also contact the Social Security Administration via phone or email, or visit your local Social Security office for personalized advice.

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