SSA Confirms Over $7.5 Billion in Retroactive Social Security Payments

Many beneficiaries are also set to receive higher benefits starting in April.

A Social Security card is seen along with checks from the U.S. Treasury in Washington on Oct. 14, 2021. Kevin Dietsch/Getty Images

The U.S. Social Security Administration (SSA) announced the payment of billions of dollars to more than a million Americans after two provisions that reduced or eliminated benefits for certain individuals were recently repealed.

Last week, the agency said that it will start paying retroactive payments to people whose benefits have been affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Through March 4, “SSA has already paid 1,127,723 people more than $7.5 billion in retroactive payments,” the agency said in a March 4 statement. “The average retroactive payment so far is $6,710.”

The WEP and GPO provisions “reduced or eliminated the Social Security benefits for over 3.2 million people who receive a pension based on work that was not covered by Social Security (a non-covered pension).”

In January, former President Joe Biden signed the Social Security Fairness Act (SSFA) which ended both GPO and WEP. Since the provisions no longer applied as of January 2024, millions of Social Security beneficiaries became eligible for retroactive payments.

“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.”

SSA said it continues to pay the remaining retroactive payments.

Furthermore, the elimination of WEP and GPO makes many beneficiaries eligible for higher monthly benefits starting in April. The exact increase in payment will depend on factors such as the type of Social Security benefit they receive and the amount of pension received.

Teachers, police officers, firefighters, federal workers covered by the Civil Service Retirement System, and employees whose work is covered by a foreign social security system stand to gain under the new changes.

Beneficiaries set to receive retroactive benefits or see an adjustment in monthly benefits will receive a mail notice from the Social Security Administration explaining the matter.

Most people receiving retroactive payments may get their notice two to three weeks after receiving payments since “the President understands how important it is to pay people what they are due right away,” SSA said.

Sen. Lisa Murkowski (R-Alaska) welcomed the SSA announcement of retroactive payments, according to a Feb. 27 statement. Earlier last month, she joined other lawmakers in sending a letter to the Acting Commissioner of the SSA, calling for quickly implementing the Social Security Fairness Act.

Murkowski said the WEP provision reduced Social Security benefits for people getting government pensions, while the GPO cut down benefits for widows, spouses, and widowers whose spouses received government pensions.

“I applaud the Social Security Administration for moving quickly to ensure Alaska’s public servants are able to access the benefits they are entitled to,” she said.

“I have been working on the Social Security Fairness Act for 22 years—and Alaskans have been waiting even longer for their benefits. I’m grateful to the administration for promptly implementing this law so that Alaskans will not have to wait any longer for the benefits they’ve earned.”

Advocacy group The Concord Coalition criticized the Social Security Fairness Act in December, arguing that it ignored “the real injustice.”

The group said most government employees receive both social security and public pensions because they contributed to the two plans while employed.

Less than 30 percent of workers employed at state and local governments do not participate in social security. “These non-covered workers are not being denied Social Security because of their public service careers.” Instead, “they do not receive Social Security benefits because they do not pay Social Security payroll taxes.”

“Non-covered workers are not being singled out for unfair treatment. Indeed, repealing the GPO and WEP would result in more favorable treatment. They would get more and pay less than everyone else. That would be an unearned windfall.”

Meanwhile, the jump in monthly benefits for certain Social Security beneficiaries beginning in April is above the cost-of-living adjustment made this year, which is applicable to all recipients.

SSA raised benefits by 2.5 percent this year for more than 72.5 million beneficiaries, which amounted to an average increase of $50 per month.