The Social Security Administration has completed benefit adjustments for roughly 91% of the nearly 3 million retirees affected by January’s Social Security Fairness Act, delivering both increased monthly checks and retroactive lump-sum payments that could total thousands of dollars, reports CNBC.
If you’re among those still waiting, your windfall should arrive within months.
These payment adjustments eliminate decades-old rules — specifically the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) — that reduced Social Security benefits for public sector retirees who also received pensions from jobs that did not require Social Security taxes.
As outlined in the Social Security Fairness Act of 2024, the changes mean more money monthly, plus catch-up payments dating back to January 2024.
Who’s getting bigger checks?
You’re likely to receive higher payments if you worked in a public sector job where you didn’t pay Social Security taxes but also qualify for Social Security benefits through other work or through a spouse.
According to the Social Security Administration, this group typically includes teachers, firefighters, police officers, and federal workers with older pensions. CNBC reports that it can also include people with foreign earnings.
The key factor is whether your public pension came from work that did not require Social Security contributions. According to the same report, about 72% of state and local government employees paid into Social Security and were unaffected by the new law.
The eliminated provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—previously reduced benefits for more than 2.8 million people. According to the latest update from the SSA, as reported by CNBC, the agency has processed about 2.5 million cases to date.
Your potential windfall
Monthly benefit increases vary based on your specific situation. According to the Social Security Administration, some retirees may see minimal increases, while others could gain more than $1,000 monthly.
The Congressional Budget Office previously estimated that the changes will result in higher monthly payments ranging from $360 to $1,190, depending on individual circumstances, CNBC reports.
Affected beneficiaries will also receive lump-sum payments covering the months before their benefit adjustment took effect. For each recipient, the monthly increase and any owed back payments are processed together, a Social Security official said. Benefit payments are typically issued the month after they are earned, according to the Social Security Administration.
Railroad Retirement Board beneficiaries also stand to receive adjusted annuity payments. New monthly annuity amounts for most individuals will begin in July, and one-time retroactive payments are due to arrive by the end of July, according to a Railroad Retirement Board spokeswoman, CNBC notes.
If you haven’t noticed a change in your benefit amount or received a lump-sum payment, log into your my Social Security account or contact the SSA to confirm whether your case has been processed.
Still waiting? Here’s what to know
The Social Security Administration is now prioritizing the remaining complex cases that could not be automated and require additional time to update records manually.
David A. Weaver, a former Social Security Administration executive who currently teaches statistics at the University of South Carolina, notes to CNBC that about 300,000 individuals are still waiting, and they may have unique circumstances.
For example, some eligible beneficiaries who have recently died may qualify for lump-sum retroactive payments, which Weaver said the SSA would likely try to issue to survivors. According to CNBC, others may be affected by over-payments, where the agency will generally seek reimbursement for excess sums issued.
The Social Security Administration plans to update all beneficiary records affected by the law by early November. However, a Social Security Administration official says the agency is “working to exceed its estimate” under new commissioner Frank Bisignano.
The official added that Bisignano “committed to senators during his confirmation process that this would be finished ‘while the weather is warm’ and he will keep his promise,” CNBC reports.
Weaver said that in addition to cases requiring manual processing, some people are now newly eligible to apply for Social Security benefits as a result of the law. According to the Social Security Administration, these individuals may need to apply, and the date of that application may determine the benefit start date and amount.
If you think you may now qualify for Social Security benefits due to the law change, even if you were previously ineligible, contact the SSA to initiate a new application. Your filing date may affect the amount you receive and how far back your payments go.
What could happen next?
As the implementation of the Social Security Fairness Act wraps up, David A. Weaver, a former executive at the Social Security Administration, suggests that Congress consider having the Government Accountability Office conduct an audit.
He explains that the goal would be to assess the total administrative costs tied to the process, including the handling of manual cases, new claims, and the flood of public inquiries.
Weaver also suggested to CNBC that other SSA functions may have been delayed or deprioritized while the agency focused on updating benefits, an issue an independent review could help clarify.
When you do receive your increased benefits or lump sum payment, hang onto your award letters, payment statements, and any SSA correspondence. These may be useful if you’re contacted about overpayments or if there’s a future audit of the program’s rollout.
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