The Social Security Administration has officially initiated the distribution of retroactive payments to approximately 3.2 million Americans who are eligible for increased benefits following the enactment of a recent legislative change.
Passed by the Congress in December, the Social Security Fairness Act abolishes two controversial provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These regulations previously limited the Social Security benefits available to individuals receiving certain public pensions, including those from careers as teachers, police officers, firefighters, and other government roles.
In an era of considerable political division, this law managed to secure an impressive level of bipartisan support: The House of Representatives approved it with a vote of 327 to 75, and the Senate followed suit with a 76 to 20 vote. The legislation was ultimately signed into law by then-President Joe Biden on January 5.
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Understanding Congress’s Decision to Revise WEP and GPO
Most individuals in the workforce contribute to Social Security through mandatory payroll taxes. Generally, private-sector employees qualify for Social Security retirement benefits after a decade of contributions. This system is designed to provide financial security during retirement.
However, public-sector employees are governed by distinct pension systems and, as a result, are typically not required to contribute to Social Security. This means that many of them do not qualify for Social Security retirement benefits unless they have held a secondary job or are in retirement from a private sector role.
The original intent behind the implementation of the WEP and GPO was to prevent public-sector workers from receiving both Social Security benefits and public pension payments—an act often referred to as “double-dipping.” However, advocates for the Social Security Fairness Act contended that these retirees deserve their due benefits since they have contributed to the Social Security system.
The Individuals Impacted by the Social Security Fairness Act
The Social Security Administration clarified that the majority of local and state public-sector employees do contribute to Social Security and, as such, remain unaffected by this new legislation. Nevertheless, approximately 3.2 million retirees, along with their spouses and surviving spouses, stand to gain from the provisions outlined in the new law, as indicated on the SSA’s official website.
Projected Increases in Social Security Payments
According to estimates from the Congressional Budget Office (CBO), around 2.1 million beneficiaries impacted by the WEP will observe an average rise of $360 in their monthly benefit payments. This adjustment is based on projected benefit estimates for December 2025, reflecting the long-term financial planning involved in the program.
The repeal of the GPO, which specifically affects spouses and surviving spouses, is expected to lead to an average increase of $700 per month for approximately 380,000 spouses, while another 390,000 surviving spouses could see their average monthly payments rise by as much as $1,190.
What Actions Should Eligible Beneficiaries Take?
For most individuals, there may be no immediate action required on their part. Acting commissioner Lee Dudek announced that the agency is adhering to an “aggressive schedule” aimed at distributing retroactive payments beginning this month.
Under the stipulations of the Social Security Fairness Act, the WEP and GPO will be rendered obsolete starting January 2024. Consequently, eligible beneficiaries are entitled to receive backpay from that date. The SSA has communicated that these payments began to be distributed the week of February 24 and assures that all individuals owed retroactive payments will receive their funds by the end of March.
Additionally, the increased monthly payments will start to be reflected in the March Social Security payments, which are scheduled for disbursement in April. In both instances, the SSA will deposit these funds into the bank accounts they have on record for the beneficiaries.
If you qualify for the rollback of the WEP and/or GPO, expect to receive a notification via mail from the SSA outlining the specifics of your retroactive payments and any adjustments to your monthly benefits. The SSA also provides a comprehensive FAQ section addressing these and other pertinent inquiries. If you’re uncertain whether the agency has your correct mailing address or bank account information, you can easily verify this by accessing your Social Security account online or by calling their helpline at 800-772-1213.
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