2.4 million people to see higher Social Security payments starting in 2025

Just before Christmas, the US Senate passed the Social Security Fairness Act, which was approved by the House of Representatives in November. The bill, which passed with bipartisan support in both chambers, makes changes to the law that governs Social Security and will lead to larger checks for 2.4 million people.

How the law came to pass

Just before the Senate passed the bill, leaders from the Fraternal Order of Police met with the president-elect at Mar-a-Lago, where they received his endorsement of the legislation. The Windfall Elimination Provision and Government Pension Offset were enacted in the late 1970s and early 80s to decrease government spending on Social Security and have long been a target by unions representing public sector workers. These provisions reduced payments for workers and their qualifying spouses and survivors if they received a government pension. For example, teachers who received a pension would be unable, in many cases, to claim the Social Security benefits of their deceased spouse. Additionally, millions of retirees who had worked in the public sector and received a pension would see their Social Security checks reduced due to the Windfall Elimination Provision.

Democrats and some Republicans have long supported the repeal of these provisions. However, Trump’s campaign promise led enough GOP members of Congress to join Democrats in passing the legislation.

Do I need to apply for benefits if affected by the Social Security Fairness Act?

Now that Congress has stripped these provisions from the law, it is up to President Biden to sign the bill. Once the White House has given its stamp of approval, the Social Security Administration will be tasked with implementing the new rules. After the Senate approved the bill, the SSA informed beneficiaries that they do not need to take any action as long as the SSA has their current mailing address and direct deposit information on file. If you have already receive payments from the SSA each month, they have access to this information. Once the new rules have been finalized, they will be published on the SSA’s website.

For those who receive a public pension but will be eligible for Social Security thanks to the new law, the SSA advises waiting until President Biden signs the law and then applying for benefits online or scheduling an appointment with your local Social Security office.

When will the increased payments be sent?

Until the White House signs the bill, it is not law. The president could sign it before January, but the SSA has not confirmed whether the higher payments would be reflected in the check sent next month. Once the SSA has announced how they will implement the law, we will bring you the latest.

One aspect of the legislation to keep in mind is that it allows for larger payments to be made retroactively. In other words, the funds lost to these provisions in 2024 will be recovered by those eligible. The SSA still needs to announce whether these retroactive payments will be sent alongside one’s normal monthly payment or under a different distribution scheme.

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