Millions of Social Security beneficiaries in the United States will see an increase in their monthly payments starting in April. This adjustment follows the implementation of the Social Security Fairness Act, a law signed by former President Joe Biden before leaving office.
The change affects nearly three million retirees who had their benefits reduced due to two long-standing provisions. These rules primarily impacted those who worked in public sector jobs without contributing to Social Security. Many of them will also receive retroactive payments in March, according to the Social Security Administration (SSA).
What Changes Under the Social Security Fairness Act?
The new law eliminates two key provisions that previously lowered Social Security payments for many retirees:
- Windfall Elimination Provision (WEP) – This rule reduced Social Security benefits for around two million retirees who had both public sector jobs (without Social Security contributions) and private-sector jobs (where they did contribute). With its repeal, these retirees will now receive full benefits.
- Government Pension Offset (GPO) – This provision affected about 800,000 beneficiaries, particularly widows and widowers receiving public sector pensions. It significantly reduced or even eliminated their survivor benefits. Its removal ensures they now receive their full entitlement.
Who Will Receive Higher Payments?
The SSA has confirmed that retirees affected by these provisions will see an increase in their benefits starting in April. The exact amount will vary based on work history and benefit type.
Additionally, those who experienced deductions before 2024 will receive a one-time retroactive payment in March, covering the amounts they missed since the law took effect.
For example, under the previous rules, a retiree receiving a $3,000 public sector pension and $2,100 in survivor benefits from a deceased spouse would have had two-thirds of their pension deducted, leaving them with only $100 in Social Security payments. With the new law, this reduction is eliminated, allowing them to receive the full amount.
Most payments will be processed automatically. However, the SSA has warned that complex cases may take longer to resolve. Beneficiaries will receive a mailed notice detailing their updated payment amounts and any retroactive payments they are owed.
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