Bad news for Social Security retirees: these are the Americans who would see their payouts jeopardized with checks of up to $5,108 on hold
The Social Security Fairness Act promises to adjust past and future benefits for almost 3 million Americans but that boost to income may take time.
Nearly 3 million American will be looking forward to seeing a boost, perhaps over $1,000, to their Social Security payments, in addition to a lump-sum payment, thanks to the Social Security Fairness Act. The legislation repealed two laws that reduced benefits for certain workers, their spouses and survivors who receive pensions for non-covered employment.
However, the Social Security Administration is still finalizing its plan to implement the Act and has no estimated timeframe for when that adjustment to a person’s past or future benefits will be.
What is the Social Security Fairness Act and who does it affect?
Passed by Congress in November, the Social Security Fairness Act was signed into law by the former U.S. president, Joe Biden, in early January.
A bipartisan piece of legislation, the Act repeals two federal policies - the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) - that had reduced, or eliminated entirely, some Americans’ Social Security benefits.
The WEP affected the retirement and disability payments paid by the SSA to state and federal employees - including some teachers, police officers and firefighters - who also collect public pensions for work not covered by Social Security. The GPO, meanwhile, served to cut the spousal or surviving spousal benefits picked up by workers who also receive pensions for non-covered employment.
The Social Security Fairness Act applies retroactively to the beginning of 2024, so Americans affected by the new legislation can expect not only to receive increased Social Security benefits in the future.
Speaking after signing the law, Biden said beneficiaries would also receive “a lump-sum payment of thousands of dollars to make up for the shortfall in the benefits they should have gotten in 2024.”
The Social Security Fairness Act affects about 4% of all Social Security beneficiaries, per a report by the Congressional Research Service. In total, over 3.2 million stand to benefit from the legislation, according to the SSA.
Looking for information about the Social Security Fairness Act? Check out our updated webpage https://t.co/ey9yAUzfMj.
— Social Security (@SocialSecurity) January 24, 2025
How much will the Social Security Fairness Act increase benefits by?
Per a September 2024 estimate by the Congressional Budget Office, the legislation will increase monthly benefits by an average of $360 for Social Security beneficiaries previously impacted by the WEP, and by an average of between $700 and $1,190 for Americans who were affected by the GPO.
Currently, in 2025, all beneficiaries who wait until they reach age 70 before claiming Social Security benefits can receive a maximum monthly payment of $5,108.
If you never applied for retirement, spouse’s, or surviving spouse’s benefits because of WEP or GPO, “you may need to file an application,” advises the SSA. New this year, the SSA is taking application by phone. You can call 1-800-772-1213 (M-F 9am to 6pm ET).
“When the system asks, ‘How can I help you today?’, say ‘Fairness Act.’ Then, you’ll be asked a few questions,” instructs the SSA. The answers you give will help the SSA connect you to a WEP-GPO trained representative who will take your claim.
When will increased benefits start? When will 2024’s lump sum be paid?
Having initially said it was “evaluating how to implement the Act,” the SSA is now warning: “It could take more than one year to adjust benefits and pay all retroactive benefits.”
In a statement on its website, the SSA says the terms of the Social Security Fairness Act did not include funding to help the agency process the millions of benefit increases brought about by the new law. Under its current budget, the SSA states, there will be delays to the Act’s implementation.
”SSA’s ability to implement the law in a timely manner and without negatively affecting day-to-day customer service relies on funding,” the agency says.
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