The Social Security Administration has announced it will start issuing retroactive payments and increasing monthly benefits for people affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions had reduced or eliminated Social Security benefits for over 3.2 million people who receive pensions from jobs that did not pay into Social Security.
With the Social Security Fairness Act now in effect, WEP and GPO are eliminated. Many affected individuals, including teachers, firefighters, police officers, and some federal employees, will receive a retroactive payment since these reductions no longer apply as of January 2024. Most retroactive payments will be deposited by the end of March.
Monthly Social Security benefits will also increase for many of these individuals, with the higher payments starting in April. The exact amount will vary based on the type of Social Security benefit and pension amount.
People whose benefits are adjusted will receive a mailed notice explaining their payment changes. However, most will receive their retroactive payment a few weeks before getting the notice. While Social Security is automating much of this process, complex cases requiring manual review will take longer to resolve.
Beneficiaries are encouraged to wait until April before checking on their retroactive payment status, as payments will continue to be processed through March. For questions about new monthly payments, Social Security advises waiting until after receiving the April payment.
If you’re affected by these changes and have questions about how they impact your retirement planning, reach out to your financial advisor. They can help you understand your updated benefits and how to make the most of them.
Jacob King
