In January, we first posted (here) about The Social Security Fairness Act concerning the elimination of the Windfall Elimination Provision and Government Pension Offset. Many clients were previously impacted by these provisions which reduced, or in many cases, eliminated Social Security benefits they would have been eligible for if they (or their spouse) did not have a government pension such as STRS or OPERS.
The big take away: if you’ve never filed for benefits, you will need to file based on your record or your spousal benefit (Social Security rules pay benefits based on your record or 1/2 of your spouse’s benefit, whichever is greater). Benefits may be retroactive to January 2024 and a lump sum could be paid prior to updating (or starting) your new benefit amount. These lump sum payments started being paid in March.
Below is a summary of the newest updates and instructions on how to apply. For a complete list of questions and answers you can visit the Social Security’s update page here. If you have questions, or need to determine if you should begin a benefit you were previously ineligible for, we encourage you to reach out to your advisor.
Starting February 25, 2025: SSA began to pay retroactive benefits and is increasing monthly benefit payments to people whose benefits have been affected by the WEP and GPO.
If a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. This retroactive payment will cover the increase in their benefit amount back to January 2024, the month when WEP and GPO no longer apply. Social Security benefits are paid one month behind. Most affected beneficiaries will begin receiving their new monthly benefit amount in April 2025 (for their March 2025 benefit). Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.
NOTE: A beneficiary may receive two mailed notices, the first when WEP or GPO is removed from their record, and a second when their monthly benefit amount is adjusted for their new monthly payment amount. They may receive the retroactive payment before receiving the mailed notice.
What should people do now that the Social Security Fairness Act is law?
The Act applies to benefits you get on your own record (retirement or disability benefits) and to spouse’s or surviving spouse’s benefits on another person’s record. What action you need to take depends on your situation and on what type of benefits you are eligible for. If you are entitled to retired or disabled workers’ benefits, and your benefits are currently being reduced by WEP; OR if you are entitled to spouse’s or surviving spouse’s benefits, and your benefits are currently being reduced or eliminated by GPO:
- If you know that SSA has your mailing address and/or direct deposit information on file, no other actions are needed from you at this time.
- If you want to verify that the mailing address and/or direct deposit information that SSA has on file is accurate and up to date: Check your personal my Social Security account. Visit www.ssa.gov/my account to sign in or create an account. If you are unable to create an account, please call 1-800-772-1213 to verify the information we have on file.
- Ensuring that SSA has the correct information allows you to get any retroactive benefits and your new benefit amount quicker.
- If you are not sure whether you ever applied for retirement, spouse’s, or surviving spouse’s benefits: You may need to file an application. The date of your application might affect when your benefits begin.
- If you never applied for retirement due to WEP or spouse’s or surviving spouse’s benefits because of GPO: You may need to file an application. The date of your application might affect when your benefits begin and your benefit amount. However, each case is different, and all other Social Security laws and policies, such as benefit reductions for claiming benefits before the full retirement age, the retirement earnings test, and others, still apply.
- Retirement or Spouse’s Benefits
- The most convenient way to apply for retirement or spouse’s benefits is online at www.ssa.gov/apply.
- Please note that the online application continues to collect pension information until we are able to update it; however, we will not offset the benefit.
- If you are applying for spouse’s benefits, please note that selecting “Family Benefits” will take you to the application for Retirement/Medicare benefits. This process ensures that you will be considered for all benefits you are entitled to.
- We can take an application by telephone for people who did not previously apply for retirement benefits because of WEP or spouse’s benefits because of GPO. If you meet these conditions, call 1-800-772-1213 Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET.
- Surviving Spouse’s Benefits:
- The survivor benefit application is not available online.
- Call 1-800-772-1213 Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET.
- For additional eligibility information, visit www.ssa.gov/apply.
- As of week ending April 4, 2025, SSA has taken 130,600 new applications since the Social Security Fairness Act and completed 83% of the new applications.
If a person has had their premiums deducted from their CSRS annuity, and then applies for Social Security benefits, SSA will tell the person that their premiums will now be deducted from their monthly Social Security benefits. SSA’s notice will include this information. In most cases, the premium refund will be included in the back payment from SSA. If not, the refund will be issued at the end of the calendar quarter. If you do not receive a premium refund within 6 weeks of the close of the calendar quarter, please contact SSA. Please contact SSA if you have any questions about your premiums.
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