Social Security Issues Over 1 Million Retroactive Payments—What To Expect

The Social Security Administration (SSA) has confirmed that more than a million Americans have received backdated payments worth thousands of dollars.

Why It Matters

Earlier this year, lawmakers passed a bill—the Social Security Fairness Act—that would repeal two provisions that limited retirement benefits for certain workers, including teachers, firefighters, and police officers, some federal employees, and their spouses.

Signing the act into law, former President Joe Biden said it would permanently boost Social Security benefits for more than 2.8 million recipients, and that retroactive payments backdated to January 2024 would also be issued. But these groups were originally told that it could take up to a year for backdated payments and renewed benefits amounts to be administered—but now this has changed.

What To Know

The SSA confirmed in a press release issued on March 4 that 1,127,723 people impacted by the law change have received more than $7.5 billion in retroactive payments. The average retroactive payment so far is $6,710.

Updated benefit amounts for those who have had their benefits increased by the passing of the Social Security Fairness Act will begin in April.

Dollars — Stock image/file photo: A person holding several $100 bills.

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Who Is Getting Retroactive Payments?

The Social Security Fairness Act repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both had been in place since the Ronald Reagan administration.

All those impacted by the WEP and GPO who are retired should expect a payment. The SSA has estimated this is some 3.2 million Americans.

The WEP reduced Social Security benefits for individuals who receive pensions from public-sector jobs—such as those held by state and federal employees—that did not require Social Security payroll tax contributions. This reduction applied even if they contributed to Social Security through other employment and qualified for benefits.

The GPO reduced spousal or survivor benefits for retired federal, state, and local government workers who did not pay into Social Security funds through their payroll taxes.

What People Are Saying

Lee Dudek, acting commissioner of Social Security, said in the press release: “President Trump made it very clear he wanted the Social Security Fairness Act to be implemented as quickly as possible. We met that challenge head on and are proudly delivering for the American people.”

John Hatton, staff vice president of policy and programs at National Active and Retired Federal Employees Association, told Federal News Network: “SSA’s announcement that they will begin paying benefits to those impacted by WEP and GPO this week is music to our ears. This is much quicker than previously forecast, and will have an immediate, positive impact on those who have waiting decades for this relief.”