Retirees have a reason to celebrate this April, as over 3 million Social Security beneficiaries will see an increase in their monthly payments. Thanks to the Social Security Fairness Act, signed by former President Biden in January, certain groups of workers—such as teachers, firefighters, and police officers—will receive higher benefits.
This law removes previous rules that reduced Social Security payments for retirees with pensions from jobs not covered by Social Security. As a result, many retirees will get a boost in their benefits, along with a one-time retroactive payment.
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Eligibility
The new law primarily benefits retirees who worked in jobs not covered by Social Security but also paid Social Security taxes on side jobs or part-time work. This includes:
- Teachers – Those who worked summer jobs and paid into Social Security.
- Firefighters and Police Officers – Many in these fields receive pensions but had additional work covered by Social Security.
- Federal Employees – Workers covered by the Civil Service Retirement System (CSRS).
- Individuals with Foreign Pensions – Those who paid into another country’s social security system but also worked in the U.S.
Before this change, these individuals had their Social Security benefits reduced or eliminated due to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The new law removes these reductions, allowing retirees to receive the full benefits they earned.
Benefit Increases
This increase is separate from the 2025 Cost of Living Adjustment (COLA), which raised benefits by 2.5% in January. The new adjustments will significantly boost monthly payments, with some retirees seeing increases of several hundred dollars to over $1,000.
Additionally, a one-time retroactive payment will be sent at the end of March. This payment compensates retirees for the months they should have received higher benefits before the law took effect.
The largest payments will arrive in April, covering March benefits. Anyone affected by these changes will receive a notification from the Social Security Administration (SSA) explaining the increase.
Change
The WEP and GPO were originally designed to prevent double-dipping—receiving both a pension and full Social Security benefits. However, these rules often led to unexpected benefit cuts, frustrating many retirees.
Retirement expert Mark Miller explains:
“The WEP and GPO made sense to policy experts and actuaries, but for affected workers, the large benefit cuts came as a big surprise. That’s why there were repeated efforts to repeal them, and Congress finally acted.”
With this reform, Social Security is now fairer for millions of retirees who worked in non-covered jobs but also contributed to the system.
FAQs
Who qualifies for the SSA benefit increase?
Retirees with pensions from non-Social Security jobs who also paid Social Security taxes on side jobs.
When will the increased payments begin?
The higher benefits start in April 2025, with retroactive payments arriving in March.
How much will benefits increase?
Increases vary but can range from a few hundred dollars to over $1,000 per month.
Does this replace the 2025 COLA?
No, this is separate from the 2.5% COLA increase that took effect in January 2025.
How will I know if my benefits increased?
The SSA will mail notifications to those affected, explaining their benefit changes.
