The first wave of Social Security claims resulting from the Social Security Fairness Act signed into law on January 5 has been processed, and checks are being sent out, the Social Security Administration (SSA) confirmed.
This new law has eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), provisions that reduced Social Security benefits for certain retirees who also receive pension income.
WEP and GPO impacted nearly 3 million Americans, including police officers, firefighters, postal workers, and public school teachers.
The SSA has already processed about 30,000 new claims under the law, and depending on the claimant’s age and entitlement factors, some of these individuals are receiving retroactive payments. The SSA spokesperson stated, “We continue to work on the process.”
Why are Payments Taking Time?
One key reason for the delay is the law’s retroactive effective date of January 2024. This means that the SSA has had to adjust both past and future benefits for those affected by the new law. Unfortunately, SSA didn’t receive a budget for these changes, which has made the task more difficult.
The spokesperson added, “Our ability to implement the law promptly and without negatively affecting customer service relies on funding.
The law did not provide the necessary resources for this.” In addition, the SSA has been dealing with staff shortages and a hiring freeze since November 2024, which will continue.
Initially, the SSA estimated that affected beneficiaries could face a wait of a year or more to receive their retroactive payments. However, they now expect those payments to be made by the end of March.
Starting in April, affected beneficiaries will see their new monthly benefit amounts reflected in their payments.
The SSA also clarified that beneficiaries will receive mailed notices explaining these adjustments, which may come in two parts: one for the removal of WEP or GPO, and another for the new monthly payment amount.
Reactions to the Delay
The news of the delay triggered a strong response from lawmakers, with both Republican and Democratic senators calling for immediate implementation of the law.
They urged the SSA to provide prompt relief to the millions of people impacted by WEP and GPO.
In response, the SSA stated that it has used automation to speed up payments. However, more time will be needed for cases that cannot be processed automatically. For these complex cases, the SSA will manually update records and issue both retroactive and new benefits.
Mike Barker, a 67-year-old retired police officer from Brimfield, Ohio, expressed his disappointment about the delay. “Bureaucracy at its finest,” he said, but added that he planned to use the retroactive payment for travel once it arrived.
What Can Beneficiaries Do to Speed Up Payments?
For most beneficiaries, the easiest way to speed up payments is to ensure their information is up to date. Those filing new claims can check the status of their claims via their Social Security account.
If your direct deposit details or mailing address need updating, you can do so online without visiting an office or calling SSA.
For current beneficiaries affected by WEP or GPO, the SSA recommends checking if the correct information is on file. Generally, no other actions are needed.
SSA also encourages individuals to subscribe to updates on its Social Security Fairness Act webpage to get real-time notifications about payment status.
How Much Will Affected Beneficiaries Receive?
The amount each affected worker can expect to receive will vary. Some may see small increases, while others could receive over $1,000 more per month.
The SSA stated that these changes will depend on various factors, including the type of Social Security benefit received and the amount of pension income a person receives.
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How Did WEP and GPO Affect Benefits?
The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) were introduced in 1983 to address concerns that people working in government jobs, where Social Security contributions were not made, might benefit too much from Social Security.
The WEP affected retirees who received non-covered pension income—often from public sector jobs like police officers or teachers. It could reduce their Social Security benefit by as much as half the pension amount.
The GPO impacted spousal or survivor benefits for those receiving non-covered pensions. In some cases, the offset could reduce the benefit to zero.
Repealing WEP and GPO: A Controversial Decision
The repeal of WEP and GPO remains controversial. Gary Brewer, a retired certified public accountant from Sacramento, California, argued that WEP was necessary to close a loophole.
He pointed out that government retirees were exempt from Social Security taxes for certain jobs, and Social Security should not have to cover them at a higher rate like low-income workers.
Brewer also shared an example of how repealing GPO could favor public workers. He illustrated that under the new law, a public worker like Chandler, a retired firefighter, might receive additional benefits, which would increase family income.
Despite these debates, many beneficiaries are now looking forward to the new changes and the expected retroactive payments as a result of the Social Security Fairness Act.
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