Social Security Fairness Act: Some Beneficiaries Have To Wait Until November To Get Paid

CNET

2 days ago

The Social Security Fairness Act means more money for certain beneficiaries. Here's what to know.
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The Social Security Fairness Act went into effect in Feb 2025 and the SSA has been sending billions in retroactive payments and benefit adjustments to qualifying individuals. The act gets rid of two rules and will result in a boost in monthly payments for former and current public employees who previously had their benefits reduced due to having "noncovered pensions."
As of Apr 29, over $14.8 billion in retroactive payments have been sent out to 2.2 million beneficiaries. The SSA says the average retroactive payment so far is $6,710 and new benefit amounts could be over $1000 for some people.
Payments and benefit adjustments began rolling out in April, but if you qualify and haven't noticed any change in your payment yet, don't worry. Read on to find out exactly what rules were repealed, who benefits from the Social Security Fairness Act and why some people are still waiting for their payments.
For more, don't miss the Social Security payment schedule and how to apply for Supplemental Security Income.
What is the Social Security Fairness Act?
The Social Security Fairness Act was passed by the House in November, and signed by former President Joe Biden on Jan. 5. It eliminates earlier rules that limited payments to public service workers such as teachers, firefighters, postal service workers and police officers, meaning that those people will soon receive bigger payouts.
Specifically, it repeals these two rules:
The Windfall Elimination Provision (PDF), enacted in 1983, is a formula used to adjust Social Security worker benefits for people who receive "noncovered pensions" and who qualify for Social Security benefits on other earnings that are covered by Social Security. A noncovered pension is one paid by someone's employer that did not withhold Social Security taxes from their salary.
The Congressional Budget Office predicts (PDF) the elimination of the WEP would increase benefits by $360 on average for 2.1 million Social Security beneficiaries. This would further increase to $460 on average for 1.8 million recipients by December 2033.
The Government Pension Offset was enacted in 1977 and adjusted in 1983 and reduced the Social Security benefits of spouses, widows and widowers who also received government pensions of their own.
The elimination of the GPO, the CBO predicts, will increase monthly benefits payments by around $700 for spouses and $1,190 for surviving spouses in December 2025. By December 2033, payments would be up to $860 and $1,520, respectively.
Collectively, only about 4% of all Social Security beneficiaries (PDF) are affected by the WEP and GPO, but to the 2.8 million qualifying individuals (down from the 3.2 million the SSA reported in April), the impact on those households could be profound. The act applies to payable benefits after December of 2023, meaning back payments will be issued for qualifying individuals.
Due to the increase in Social Security payments, the CBO estimates a reduction in Supplemental Nutrition Assistance Program payments for those who participate in both programs.
How will qualifying individuals be notified?
The SSA says that if you are due a retroactive payment or an adjustment, you will receive a notice in the mail. However, some beneficiaries might receive two notices in the mail. One to inform when the WEP or GPO is being removed from their record and another with the benefit change or retroactive payment.
In some cases, a beneficiary may receive a retroactive payment before they receive their mailed notice.
Some might have to wait until November to get paid
While the SSA has made substantial strides in getting back payments and new benefit amounts to beneficiaries, this is largely in part due to automation. However, the SSA says that more complex cases that can't be handled through the automation process must be manually updated. This goes for both retroactive payments and benefit adjustments, and the payments are being sent out as they complete each case.
The SSA expects to complete the remaining adjustments by early November. As of May 23, 87% of the adjustments have been completed, totaling 2.4 of the 2.8 million beneficiaries.
What should qualifying individuals do in the meantime?
Now that the Social Security Fairness Act has gone into effect, there isn't much a qualifying individual needs to do.
The only thing the SSA suggests is to have your current mailing address and direct deposit information listed in your account. You can do this online via your my Social Security account or by visiting a local office.
For more, don't miss our Social Security and SSDI cheat sheet and four ways you could potentially lose your Social Security benefits.