The Social Security Administration (SSA) has made significant progress in implementing the Social Security Fairness Act. As of March 4, 2025, over $7.5 billion in retroactive payments have been disbursed to 1,127,723 beneficiaries. These payments are a result of the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
The average retroactive payment distributed so far is $6,710. Acting Commissioner of Social Security, Lee Dudek, stated, “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.”
The WEP and GPO provisions previously reduced or eliminated Social Security benefits for over 3.2 million individuals receiving pensions based on work not covered by Social Security taxes.
In addition to the retroactive payments, the SSA will start issuing higher monthly benefit payments in April, covering March benefits. The Social Security Fairness Act was passed in November and signed by former President Joe Biden on January 5. It eliminates two rules that limited payments to public service workers such as teachers, firefighters, postal service workers, and police officers.
The Congressional Budget Office (CBO) estimates that eliminating WEP will increase benefits by an average of $360 for 2.1 million Social Security beneficiaries, further increasing to $460 on average for 1.8 million recipients by December 2033.
Social Security retroactive payments update
The CBO also predicts that eliminating the GPO will increase monthly benefits by around $700 for spouses and $1,190 for surviving spouses in December 2025.
By December 2033, these payments could rise to $860 for spouses and $1,520 for surviving spouses. Qualifying individuals don’t need to take any specific actions. The SSA suggests ensuring that your current mailing address and direct deposit information are up to date.
This can be done online via your SSA account or by calling 1-800-772-1213. While the increase in Social Security benefits is significant, financial advisers warn that it may also lead to higher taxes. Beneficiaries have about a year before any additional tax liabilities come due.
The amount of Social Security benefits that get taxed depends on the total income, including half of their Social Security benefits for the taxable year. Beneficiaries can take certain steps to manage the tax implications of their Social Security increase, such as amending prior tax years, making qualified charitable distributions, adjusting withdrawals, and considering investment options. Experts also suggest using some of the money for personal enjoyment, like travel, while using the bulk to pay down high-interest debt and invest in future income opportunities.
For more information, beneficiaries are encouraged to seek advice tailored to their individual financial situations.
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