The Social Security Administration (SSA) has announced retroactive payments following the passage of the Social Security Fairness Act (SSFA). This new law eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which previously reduced Social Security benefits for certain state and local government employees.
With this change, an estimated 3.2 million affected individuals, including teachers, firefighters, and police officers, will receive back pay and an increase in their monthly Social Security benefits.
Eligibility
The retroactive payments apply to individuals who:
- Receive a pension from employment not covered by Social Security.
- Did not pay Social Security taxes while working in public service jobs under the Civil Service Retirement System.
- Were previously affected by WEP or GPO, reducing their benefits.
This change does not apply to individuals who never paid Social Security taxes, ensuring that benefits are only adjusted for those who contributed at some point.
Payment
The SSA has already started releasing retroactive payments in phases:
- February 2025 – First batch of payments issued.
- March 2025 – Additional payments distributed.
- April 2025 – Final round of back pay adjustments.
All eligible recipients will be notified by mail regarding their payment details, including the exact amount and deposit date. The funds will be deposited directly into the bank accounts registered with Social Security.
Monthly
Going forward, individuals previously affected by WEP or GPO will see their Social Security benefits increase. The new monthly payment amounts will take effect starting in April 2025, reflecting the full elimination of these reductions.
Tax
While these retroactive payments provide financial relief, they may also have tax implications. A portion of Social Security income is subject to federal taxation based on total annual earnings. Recipients should review their tax situation and consider consulting a financial professional to avoid unexpected liabilities.
Future
The repeal of WEP and GPO marks a significant change in Social Security benefits, correcting long-standing reductions for millions of public service workers. Those eligible should ensure their contact information is up to date with the SSA to receive important updates regarding their payments.
FAQs
Who qualifies for Social Security back pay?
Public service workers affected by WEP or GPO who paid Social Security taxes.
When will retroactive payments be issued?
Payments began in February 2025 and will continue through April 2025.
How will I receive my back pay?
Funds will be deposited into your registered Social Security bank account.
Will my monthly benefits increase?
Yes, new benefit amounts will take effect starting in April 2025.
Are these benefits taxable?
Possibly. A portion of Social Security income may be subject to federal taxes.
