The recent passage of the Social Security Fairness Act by the outgoing Congress has ushered in significant changes for millions of Americans. This legislation repealed two laws— the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)— that previously slashed Social Security benefits for public sector workers, including firefighters, police officers, and teachers. In total, these provisions unfairly reduced or eliminated Social Security benefits for over 3.2 million individuals, including their spouses and survivors who relied on pensions from non-covered employment.

In a promising development, the Social Security Administration (SSA) has expedited the process for distributing increased monthly benefits and retroactive payments. As of last month, the SSA reported that more than a third of those impacted have already started receiving their retroactive lump-sum payments, which provide compensation that would have been allocated in 2024.

As of March 5, the SSA has dispensed over $7.5 billion in retroactive payments to approximately 1,127,723 beneficiaries, with an average payment amount of $6,710. This impressive sum aims to alleviate the financial strain caused by the previous laws. Beneficiaries can expect their monthly adjustments to reflect in payments distributed in April.

If you haven't received your retroactive payment yet, the SSA advises patience; they recommend waiting until April 2024 to inquire further. For those curious about how much their monthly payments might increase, the SSA has indicated that beneficiaries should wait until they receive their April payment for clarity.

Are You Eligible for Increased Benefits?

In the coming weeks, the SSA will send out notices to individuals who qualify for a benefit increase as a result of the new law. It's estimated that around 3.2 million people could be affected. However, only a fraction of this group may need to notify the SSA about their potential eligibility. Those who should reach out include:

Individuals unsure if they have ever applied for retirement, spouse’s, or surviving spouse’s benefits. Individuals who did not apply for retirement due to the WEP or benefits affecting their spouse or surviving spouse because of the GPO.

For those who never applied for benefits due to WEP or GPO, the SSA recommends filing an application. You can conveniently submit your application online or, for the first time this year, apply via phone by calling 1-800-772-1213, Monday through Friday from 9 AM to 6 PM ET. When prompted by the system, simply say “Fairness Act” to connect with a trained representative who can assist you.

What Will the Social Security Fairness Act Mean for Your Payments?

According to a September 2024 estimate from the Congressional Budget Office, individuals previously affected by WEP could see an average increase in monthly benefits of around $360. For those impacted by the GPO, the increase varies between an impressive $700 and $1,190.

This monumental change heralds a new era of fairness for many public sector workers affected by previous injustices in the Social Security system. If you think you may be eligible, don’t delay—take the necessary steps to secure the benefits you rightfully deserve!