The Social Security Administration (SSA) this week announced an accelerated timeline on one-time benefit payments for over three million workers.
The agency on Tuesday said it would “immediately” start paying retroactive benefits and increase monthly benefit payments to those impacted by the removal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) programs. Those affected by the new law are set to receive a one-time retroactive lump sum payment dating back from January 2024.
The Social Security Fairness Act, signed by former President Joe Biden in January, repealed the WEP and the GPO, which covered Social Security benefits for 3.2 million people who had received a non-covered pension. Among those impacted by the law include teachers, nurses, and law enforcement officers, along with federal employees covered by the Civil Service Retirement System, and people whose work had been covered by a foreign social security system.
In an FAQ published in January, the SSA said implementation of the Act would likely face a delay of up to one year due to constrained budgets. However, the SSA now says that it will begin issuing retroactive payments this month for beneficiaries to receive in March, who will receive the payments in the form of a bank account deposit. Its original estimate of a year or more will only apply to “complex cases that cannot be processed by automation” the agency stated.
“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” said Lee Dudek, acting commissioner of Social Security. “The American people deserve to get their due benefits as quickly as possible.”
Those who are set to receive higher monthly benefits will see those payments in April. All who receive a retroactive payment or an adjusted monthly benefit will be mailed a notice from the SSA explaining the changes, with most expected to collect their retroactive payment two or three weeks before they receive their notice, the agency added.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
