The Social Security Administration (SSA) has announced a major change affecting 3.2 million retirees, including teachers, police officers, firefighters, and federal employees.
This change eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), two policies that previously reduced or eliminated Social Security benefits for those receiving pensions from non-Social Security-covered jobs.
With this change, eligible individuals will receive retroactive payments and an increase in their monthly benefits starting in April 2025.
WEP
WEP and GPO were provisions that reduced Social Security benefits for individuals who:
- Worked in jobs not covered by Social Security
- Earned a government pension without paying into Social Security
This meant that many public servants, including teachers, first responders, and federal employees under the Civil Service Retirement System (CSRS), saw lower Social Security payments in retirement.
With the elimination of WEP and GPO, these individuals will now receive the full benefits they earned, leading to higher monthly payments and a lump-sum retroactive payment.
Payments
Acting Commissioner of Social Security, Lee Dudek, has confirmed that SSA is fast-tracking payments to affected individuals. The payment schedule is as follows:
- Retroactive payments for benefits owed from January 2024 will begin in February and March 2025.
- Increased monthly benefits will start with April 2025 payments.
Individuals will receive official notices from the SSA explaining their new benefits. However, these notices may arrive after payments have already been deposited, as the agency prioritizes getting payments out quickly.
How Will You Receive?
Most eligible beneficiaries will receive payments automatically through direct deposit. However, cases requiring manual review may take longer.
| Type of Payment | Expected Timeline |
|---|---|
| Retroactive lump sum (January 2024 – March 2025) | By the end of March 2025 |
| Increased monthly benefits | Starting with April 2025 payments |
The amount of the increase will depend on each individual’s work history and pension size.
What Should You Do Next?
If you believe you are eligible for these payments:
- Wait until April before inquiring about your payment status, as SSA is processing payments in phases.
- Check your bank account in late March for the retroactive lump-sum payment.
- Review your April Social Security payment to see the new increased amount.
This change ensures that millions of retirees get the full benefits they deserve. If you have questions, wait until after receiving your April payment before contacting Social Security for clarification.
FAQs
Who benefits from the WEP and GPO elimination?
Retired teachers, police officers, firefighters, and federal employees under CSRS.
When will retroactive payments be issued?
Most will receive their lump sum by the end of March 2025.
When will monthly Social Security benefits increase?
Higher payments start with April 2025 benefits.
How will I receive my retroactive payment?
It will be deposited directly into your bank account.
Should I contact Social Security about my payment?
Wait until after April 2025 if you have questions about your new benefit amount.
