Two provision’s WEP and GPO have been repealed as a result of the Social Security Fairness Act’s implementation. This elimination also resulted in an average retroactive payment and higher social security payments. Retroactive Payments have begun from February and eligible beneficiaries will receive it by the end of March 2025.
These changes will be beneficial for public sector workers including teachers, firefighters, and police officers who have faced reduction and elimination in their social security benefits due to the provisions. The increased social security benefits will be issued to eligible recipients from April 2025 for March month.
Social Security Retroactive Payments
Social Security Retroactive Payments has gained attention due to the implementation of the Social Security Fairness Act, which was signed into law in January 2025. This act has repealed two long-standing provisions including the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have reduced social security benefits for millions of Americans.
The Social Security Administration has reported on 4 March 2025 that over $7.5 billion in retroactive payments has been paid to more than 1.1 million beneficiaries. The Social Security Retroactive Payments is an incentive which compensates eligible beneficiaries for the benefits they were entitled to but not received.
What can be the results of elimination of the GPO and WEP?
The WEP was introduced in 1983 which resulted in reduction or elimination of social security benefits for those who have received pension from jobs without paying social security taxes. While GPO was enacted in 1977 which reduced benefits for spouses and survivors who were on government pensions.
The GPO and WEP under the Social Security Fairness Act has brought about significant changes. One of the most immediate results is the increase in Social Security benefits for millions of Americans. Another significant outcome is the issuance of retroactive payments which are being distributed by SSA.
This financial boost is particularly impactful for retirees who have been waiting for years to receive their rightful benefits. By repealing WEP and GPO provisions, the Social Security Fairness Act ensures fair payments in future for beneficiaries of social security.
How much will be Social Security Retroactive Payments?
The average amount of Social Security Retroactive Payments is approximately $6,710, while the exact amount can be varied based on individuals specific circumstances. These retroactive payments are designed for those who were affected by the WEP and GPO.
The agency is continually distributing these payments and most beneficiaries can expect to receive their payments by the end of March 2025. Beneficiaries will receive a notification with the explanation of their retroactive payments delivery method details and increased social security amounts.
Certain public sector workers including teachers, firefighters, and police officers are the eligible beneficiaries for retroactive payments. Because these payments will be processed continually throughout March, Social Security advises recipients to wait until April to inquire about the status of their retroactive payment.
Which steps qualifying individuals have to follow in the meantime?
As the Social Security Fairness Act has been implemented, now eligible beneficiaries have to fulfill some requirements. The SSA is advising qualifying beneficiaries to add their current mailing address and direct deposit in their accounts.
This can be done in person at a local office, over the phone at 1-800-772-1213, or online using your my Social Security account. The SSA also said that on a case-by-case basis, they will continue to handle numerous complex cases that require manual processing while they are using automation to expedite payments.
It will take longer to update the beneficiary information and pay the appropriate compensation in certain complicated circumstances. Keep in touch with the official SSA portal to get timely updates.
How much and when will Social Security Benefits increase?
After the repealed provisions of WEP and GPO, eligible beneficiaries will receive increased social security benefits in April 2025 for March month. The exact increase will be based on individual specific circumstances, social security benefit type and individual pension amount.
While some beneficiaries will receive modest benefits, some can expect over $1,000. The former president Joe Biden who signed the social security fairness act in January has said that this act could increase an average monthly benefit of $360 for more than 2.5 million Social Security recipients.