The Social Security Fairness Act was signed into law by then-President Joe Biden on Jan. 5. This act repeals two provisions–the Windfall Elimination Provision and Government Pension Offset–that have reduced Social Security benefits for millions of Americans for decades. Now, those public workers will be able to receive their full benefits.
However, the initial timeline for this left retirees in limbo, as it appeared that it could take a year or longer to receive the retroactive payments they were promised.
Now, it appears that timeline is being fast-tracked, according to the Social Security Administration.
Don't Miss:
- Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
- The average 401(k) balance soars to a record-breaking high – Here's how to know if your nest egg is keeping pace.
Who Will Benefit?
The WEP and GPO have long reduced or eliminated Social Security benefits for retirees who receive pensions from jobs where they did not pay Social Security taxes. This primarily affects public servants such as teachers, police officers, and firefighters, as well as some federal employees covered by the Civil Service Retirement System. With the repeal of these provisions, over 3.2 million individuals will see changes to their Social Security payments.
According to SSA Acting Commissioner Leland Dudek, the agency is moving quickly to ensure retirees receive their due benefits. "Social Security's aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump's priority to implement the Social Security Fairness Act as quickly as possible," Dudek stated.
Trending: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
Timeline for Retroactive Payments and Benefit Increases
For those affected, the SSA will issue one-time retroactive payments for benefits lost since January 2024. These payments are expected to be deposited into recipients’ bank accounts by the end of March. Monthly Social Security payments will also increase starting in April, though the specific amount will vary based on each individual's circumstances.
While the SSA is using automation to expedite most cases, some complex cases will require manual processing and may take additional time. Beneficiaries will receive official notices explaining any changes to their benefits or retroactive payments, though many will see deposits before receiving notification by mail.
Trending: If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
Congressional Support and Concerns
The Social Security Fairness Act received strong bipartisan support. Rep. Troy A. Carter Sr. (D-LA), a key advocate for the legislation, emphasized its importance in ensuring fair treatment for public servants. "Our teachers, firefighters, police officers, and countless other public servants in Louisiana and around the country must receive their hard-earned benefits," Carter said. "Public servants dedicate their lives to our communities, and it's only right that they receive the full retirement compensation they deserve as quickly as possible."
Despite the progress, Carter has expressed concerns about the SSA's ability to handle the surge in payments, citing reports of office closures and staff reductions under the current administration. He said he is concerned that the "Musk-Trump administration" shutting down offices and reducing SSA staff could delay payments for retirees and pledged to push back against any efforts that might slow down benefit distribution.
"We are doing everything in our power to protect hardworking American taxpayers," Carter said.
See Also: The average American couple has saved this much money for retirement — How do you compare?
What Retirees Need to Know
For those expecting retroactive payments or benefit increases, SSA advises patience. They have said that beneficiaries should wait until after receiving their April payment before inquiring about their new benefit amounts. Additionally, since payments will be processed incrementally through March, retirees are encouraged to hold off on contacting SSA until April if they have not yet received their retroactive payment.
To stay updated on these changes, retirees can visit the Social Security Fairness Act webpage and subscribe to notifications about new developments.
With these long-awaited adjustments, millions of retirees will finally receive the full Social Security benefits they earned throughout their careers, helping to improve financial security in retirement.
Read Next:
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
