Millions of retirees and their spouses will begin receiving long-awaited back payments this week following the passage of the Social Security Fairness Act, the Social Security Administration (SSA) has announced. This includes approximately 2.1 million retirees and 770,000 spouses and surviving spouses who were previously affected by reductions due to the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP).
Additionally, monthly Social Security benefits will see an increase starting in April, reflecting adjustments made for March payments.
What the Social Security Fairness Act Changes
Signed into law in January 2025, the Social Security Fairness Act eliminates the GPO and WEP, which for decades had reduced or completely cut Social Security benefits for individuals receiving certain pensions. As a result of these repeals, beneficiaries will not only see higher monthly payments but will also receive retroactive payments for 2024.
The SSA has advised beneficiaries that they may receive their retroactive payment before receiving an official mailed notice regarding their updated benefits. In some cases, individuals may receive two notices: one confirming the removal of WEP or GPO from their record and another outlining their revised monthly benefit amount.
Processing Payments: Automation vs. Manual Review
Initially, the SSA estimated that processing retroactive payments and benefit increases for 2025 could take up to a year. However, thanks to automation, many cases have been expedited, with back payments now starting the week of February 24.
That said, complex cases requiring manual review will take longer. The SSA has urged those affected to be patient and to refrain from contacting SSA until April, as the agency continues processing adjustments throughout March.
When Will Payments Arrive?
- Retroactive Payments: If you were affected by WEP or GPO and received reduced benefits in 2024, you can expect a one-time back payment in late February or March. This will be deposited into the bank account on file with SSA.
- Increased Monthly Benefits: If your 2025 Social Security benefits were reduced due to WEP or GPO, you will see an increase starting with your March benefits, payable in April 2025.
Beneficiaries are advised to wait until after they receive their April payment before contacting SSA regarding their new benefit amount
Frequently Asked Questions (FAQs)
1. How do I know if I qualify for back benefits?
If you received Social Security benefits in 2024 but had your payments reduced due to the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO), you qualify for a retroactive payment.
2. How much will my back payment be?
The amount varies based on how much your benefits were reduced in 2024. The retroactive payment will cover the difference between what you were paid and what you should have received.
3. When will I receive my back payment?
The SSA has begun issuing payments the week of February 24, 2025, and most beneficiaries should receive their funds by the end of March.
4. Will my monthly Social Security benefits increase?
Yes. If your benefits were previously reduced due to WEP or GPO, your new higher monthly benefit amount will take effect in April 2025 for March benefits.
5. What if I haven’t received my payment by April?
The SSA has asked beneficiaries not to contact them until April if they have not yet received their adjusted payment. Complex cases requiring manual processing may take longer.
6. Will I receive a mailed notice from the SSA?
Yes. Some beneficiaries may receive up to two notices: one confirming the removal of WEP or GPO and another detailing their new monthly benefit amount.
7. How will I receive my back payment?
Your retroactive benefits will be deposited directly into the same bank account where you receive your monthly Social Security payments.
8. Do I need to take any action to receive my back benefits?
No action is required. The SSA will automatically process payments for all eligible beneficiaries.
This major change provides significant relief to millions of retirees and surviving spouses who were previously affected by WEP and GPO deductions. As payments roll out, beneficiaries should stay informed and check their accounts for deposits while allowing the SSA time to complete the process .