Social Security Retirees Just Got Great News: Bigger Benefit Payments Are Coming to 3.2 Million Americans in April

Former President Joe Biden signed the Social Security Fairness Act into law on Jan. 5, 2025. The bill was originally introduced in 2023, and it repeals two preexisting provisions that either reduced or eliminated benefit payments for approximately 3.2 million public-sector employees. Consequently, some retirees, spouses, and survivors will receive additional income from Social Security in the near future.

Read on to learn more about the Social Security Fairness Act.

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What is the Social Security Fairness Act?

The Social Security Fairness Act repealed two preexisting rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both provisions were originally intended to prevent beneficiaries with public pensions from receiving full Social Security benefits in situations where they did not pay Social Security taxes on their full income.

The WEP reduced or eliminated retired-worker benefits for individuals that simultaneously held public-sector jobs not covered by Social Security taxes and other jobs covered by Social Security taxes. Similarly, the GPO reduced or eliminated spousal benefits and survivors benefits for individuals who held public-sector jobs not covered by Social Security taxes.

The WEP and GPO affected certain government workers at the local, state, and federal levels, including some police officers, teachers, and firefighters. Earlier this year, the Congressional Research Service published the following estimates concerning affected beneficiaries:

• The average affected retired worker will receive an additional $360 in monthly benefits.
• The average affected spouse will receive an additional $700 in monthly benefits.
• The average affected widow(er) will receive an additional $1,190 in monthly benefits.

Importantly, while the Social Security Fairness Act was only signed into law recently, it will be applied to benefit payments back to January 2024. That means some beneficiaries will receive retroactive payments in addition to larger payments going forward.

In all cases, the precise increase in monthly Social Security benefits depends on individual circumstances like lifetime income and public pension amounts. Anyone affected by the Social Security Fairness Act will receive a mailed notice detailing their retroactive payment and/or benefit change.

When can beneficiaries expect adjusted Social Security payments?

On Feb. 25, the Social Security Administration announced its timeline for implementing the Social Security Fairness Act.

Retroactive benefit payments backdated to January 2024 will be paid as a lump sum. Those funds will be disbursed immediately, such that most people affected by the law will see a one-time payment deposited to their bank account by the end of March. Importantly, the retroactive payments may arrive before the mailed notice explaining those payments.

Meanwhile, millions of Americans will also receive a permanent increase in monthly Social Security income. As mentioned, the precise amount will vary based on benefit type and other individual circumstances like public pension amounts, but updated benefits will take effect in April. That means all beneficiaries impacted by the WEP and GPO should see updated payments within two months.

Importantly, the Social Security Administration (SSA) recently noted, "We urge beneficiaries to wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March. Beneficiaries should also wait until after receiving their April payment before contacting SSA to ask about their monthly benefit amounts."

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