Seniors aged 63 and above are about to see a significant increase in their Social Security payments, with many beneficiaries set to receive retroactive payments.
This change stems from the Social Security Fairness Act of 2023, which aims to correct long-standing issues with Social Security calculations for certain public workers.
For those who qualify, this is a long-awaited relief that could result in significant financial benefits. Here’s what seniors 63+ need to know about their upcoming Social Security payments, including eligibility criteria, payment dates, and what’s included in the new benefits.
What is the Social Security Fairness Act of 2023?
The Social Security Fairness Act of 2023 was passed to address two provisions that negatively impacted public service employees: the Windfall Elimination Provision (WEP) and the Government Pension Offset
(GPO). These provisions previously reduced Social Security benefits for those who received pensions from non-Social Security covered jobs, like teachers, police officers, and firefighters.
With the new legislation, these provisions are repealed, which will result in increased Social Security payments for those who were affected. This adjustment will also provide retroactive payments to individuals dating back to January 2024.
Eligibility for the New Payments
To qualify for the new Social Security payments, seniors must meet one or more of the following criteria:
- Worked in Public Service
If individuals worked in public service jobs that didn’t pay into Social Security (such as teachers or firefighters), they were likely affected by WEP and GPO. The new law eliminates these penalties. - Spouse or Widow(er) of a Public Sector Worker
Spouses or surviving spouses of public service workers who were affected by the GPO will now receive increased benefits, including restored survivor benefits. - Age 63 or Older
Seniors aged 63 and older are among the first to benefit from the legislative changes. Those nearing retirement or already receiving benefits will see retroactive payments and higher monthly benefits.
What Does the New Social Security Payment Include?
Retroactive Payments (January 2024 – March 2025)
Seniors affected by WEP and GPO will receive retroactive payments to compensate for reduced benefits.
The average retroactive payment is $6,710, though the exact amount will vary based on individual work history and pension amounts. These payments are expected to be distributed by March 31, 2025.
Monthly Benefit Increases (Starting April 2025)
Once the retroactive payments are made, Social Security benefits will increase starting in April 2025. Here’s a breakdown of the average monthly increases:
- Retired workers: Average increase of $360/month
- Spouses of retirees: Average increase of $700/month
- Surviving spouses: Up to $1,190/month in some cases
These increases are in addition to the 2.5% Cost-of-Living Adjustment (COLA) set for 2025.
How Are the Payments Distributed?
Social Security payments are made based on the recipient’s birth date. The payment schedule is as follows:
- 1st–10th: Paid on the second Wednesday of each month
- 11th–20th: Paid on the third Wednesday
- 21st–31st: Paid on the fourth Wednesday
If seniors are eligible for retroactive payments, they will be deposited into bank accounts or mailed as checks, depending on the recipient’s current setup with the SSA.
What Should Seniors Do Next?
1. Check Eligibility
Seniors should review their eligibility by visiting the SSA’s My Social Security portal, where they can check their earnings and benefit history.
2. Update Information
It’s important to ensure that all contact information, including address, email, and banking details, are accurate to avoid any delays in receiving payments.
3. Wait for Official Notice
The SSA will send official letters outlining any changes to benefits and retroactive payments. Seniors should monitor their mail and emails for updates.
4. Contact SSA if No Payments are Received
If retroactive payments are not received by April 10, seniors should contact the SSA directly at 1-800-772-1213.
Real-World Example
Sandra, a 67-year-old retired teacher from Illinois, had been receiving reduced Social Security benefits due to WEP. With the new legislation, she’s eligible for:
- A retroactive payment of approximately $5,200
- A monthly increase of $400 starting in April 2025
This change will provide Sandra with an additional $10,000 in annual income.
| Aspect | Details |
|---|---|
| Legislation | Social Security Fairness Act of 2023 |
| Effective Date | January 2024 |
| Retroactive Payments | Average of $6,710; distributed by March 2025 |
| Monthly Benefit Increase | $360 for retirees, $700 for spouses, $1,190 for survivors |
| Eligibility Criteria | Public service workers, spouses, and seniors 63+ |
| Payment Schedule | Based on birthdate (2nd, 3rd, or 4th Wednesday of each month) |
The Social Security Fairness Act of 2023 brings significant relief to seniors 63+ who were impacted by WEP and GPO.
With retroactive payments and higher monthly benefits starting in 2025, eligible individuals can expect substantial financial improvements. It’s crucial for seniors to stay informed and ensure eligibility to maximize these benefits.
FAQs
What is the Social Security Fairness Act of 2023?
It’s legislation designed to remove penalties for public sector workers affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
How much can I expect as a retroactive payment?
The average retroactive payment is $6,710, though the exact amount depends on your work history and pension contributions.
When will my monthly Social Security benefit increase?
Monthly benefit increases will begin in April 2025. The amount varies by the recipient’s category, such as retirees, spouses, and survivors.