Social Security checks are increasing for almost 3 million Americans. Here's how to find out if you'll benefit—and when.
Social Security Is Increasing Payments to 3 Million People This Year—Find Out If You’re One of Them
Published on Jan. 07, 2025
For many Americans, Social Security income is a key source of financial support in retirement. Yet for nearly 40 years, a certain group of beneficiaries—currently close to 3 million Americans—received limited benefits in what many, including lawmakers on both sides of the aisle, say was an unfair practice.
The Social Security Fairness Act is intended to change that. The bipartisan bill passed the House of Representatives in mid-November with tremendous support (a vote count of 327-75-1) and was approved by the Senate in late December with a 70-26 vote. President Joe Biden signed the bill into law on Jan. 5, 2025.
Below is a closer look at the details of the new law and how much future Social Security checks may increase for impacted retirees (hopefully helping them better afford retirement costs).
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What is the Social Security Fairness Act?
The law repeals two long-standing provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both provisions, in place for more than four decades, limit the Social Security benefits that certain recipients—namely, retired public employees, their spouses and survivors—receive.
The Congressional Budget Office (CBO) estimated in September 2024 that eliminating the WEP would increase monthly Social Security payments for affected beneficiaries by an average of $360 per month. Eliminating the GPO would result in an average monthly benefit increase of $700 per month for 380,000 spouses and $1,190 per month for for 390,000 surviving spouses.
The law also includes retroactive payments for 2024 for beneficiaries. That means affected beneficiaries are owed 12 months of back payments without WEP and GPO reductions.
Who benefits from the Social Security Fairness Act?
Close to 3 million Americans, including retired firefighters, police officers, public school teachers and postal workers, should benefit from the Social Security Fairness Act. The public sector workers who will see their benefits increase are those who are eligible for government pensions from jobs where they didn’t pay into Social Security but who previously paid into the program for at least 10 years when they held jobs in the private sector or whose spouses did so.
According to the Congressional Research Service, “the two largest groups of Social Security beneficiaries that may be (or are currently) affected by the GPO and WEP are (1) about 28% of state and local government employees covered by alternative staff retirement systems; and (2) most permanent civilian federal employees hired before Jan. 1, 1984.”
After the repealing of WEP, around 2.1 million people (or about 3% of Social Security beneficiaries) can expect to see an increase in their benefits, according to the Congressional Research Service. These folks, including certain retired or disabled workers who are also entitled to pensions based on employment earnings not covered by Social Security, should soon begin to see higher Social Security checks and back pay.
The Social Security Fairness Act also repeals the GPO. Per the CBO, “The GPO reduces the spousal or surviving spousal benefits of people who receive pensions on the basis of noncovered employment.” Around 1% of all Social Security beneficiaries—some 745,679 Americans as of December 2023, according to the Congressional Research Service—saw their spousal or widow(er)’s benefits reduced by the GPO. Most of these individuals also receive pensions for local, state or federal government employment earnings not covered by Social Security. Once the Social Security Administration (SSA) implements the new law, however, those people should see an increase in their Social Security checks, plus back pay through 2024.
When will people receive this extra money?
The Social Security Administration hasn’t released specific information about when affected recipients can expect payment increases or back payments. Implementing the new law will likely take some time—especially with a new Social Security Administrator taking office this year under the transition from President Biden to President Donald Trump. The SSA has stated it will evaluate how to implement the new law and provide more information to affected beneficiaries as soon as it’s available.
If you previously filed for Social Security benefits that were offset (partially or completely), you don’t need to take any action. But it’s important to verify that the SSA has your current address and direct deposit details (especially if any of your information has recently changed). Those who are receiving a public pension and are interested in filing for Social Security benefits may file online at SSA.gov or schedule an appointment at their local Social Security office.
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Sources:
- SSA: “Windfall Elimination Provision”
- Congressional Research Service: “Social Security: The Government Pension Offset (GPO)”
- SSA: “Benefits for Spouses”
- SSA: “Who can get Survivor benefits”
