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In light of recent service and job cuts to the Social Security Administration, here is some good SSA news: The Social Security Fairness Act, a new law that was passed shortly before President Biden left office that will benefit 3 million public sector retirees, will no longer be delayed in making payments, as previously announced.
Most beneficiaries will begin receiving their new monthly benefit amount in April, according to the SSA.
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“President Trump made it very clear he wanted the Social Security Fairness Act to be implemented as quickly as possible,” said Lee Dudek, Acting Commissioner of Social Security. “We met that challenge head on and are proudly delivering for the American people.”
Lawmakers had also demanded quick implementation of the law. Senator Bill Cassidy, along with 26 colleagues, called for the “immediate implementation” of the new Social Security law, after SSA announced payments to public workers could take “more than 1 year.” Senators Jack Reed and Sheldon Whitehouse, who co-sponsored the new federal law, also called on the Trump administration to expedite its implementation.
The Social Security Fairness Act will boost Social Security retirement payments to nearly 3 million public sector retirees who draw public pensions - such as former police and firefighters - which critics warned will further weaken the program's finances.
The new law will repeal two decades-old provisions that limited benefits for people who also receive a pension. Currently, public service employees are unable to receive their full Social Security benefits if they also receive other forms of retirement benefits, such as a pension.
The new law will also eliminate the Windfall Elimination Provision, enacted in 1983, which reduces the Social Security benefits of workers who receive government pensions not covered by Social Security. It will also repeal the Government Pension Offset, enacted in 1977, which reduces benefits for spouses, widows and widowers whose spouses receive public sector pensions.
Related: Trump reverses Social Security overpayment policy, sparking backlash
“If a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March,” according to the SSA. “This retroactive payment will cover the increase in their benefit amount back to January 2024, the month when WEP and GPO no longer apply.”
The SSA has been able to expedite payments due to the use of automation. “For the many complex cases that cannot be processed automatically, additional time is required to manually update the records and pay both retroactive benefits and the new benefits amount,” said the SSA. “We urge beneficiaries to wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March.”
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
