Retired Public Employee? You May Qualify for Retroactive Social Security Benefits

The Social Security Fairness Act: What You Need to Know

The Social Security Fairness Act was passed into law on January 5, 2025, marking a significant shift for retirees who previously saw their Social Security benefits reduced—or even eliminated—due to outdated provisions. These rules were originally created to prevent what some saw as a “double benefit,” but they were widely criticized for being confusing and unfair—especially to public servants like teachers, police officers, and firefighters.

The two key provisions that have now been repealed are:

• The Windfall Elimination Provision (WEP) – This rule previously reduced Social Security benefits for individuals who had a pension from a job that did not pay into Social Security.
• The Government Pension Offset (GPO) – This provision reduced or entirely eliminated spousal and survivor benefits for those who also received a pension from government work where they did not contribute to Social Security.

For many retired public servants, these provisions created significant financial hurdles, preventing them from receiving full benefits even if they had worked in both government and private-sector roles. With these changes, eligible retirees now have a new avenue to claim the Social Security benefits they earned.

While the act passed in January, it retroactively repealed the WEP and GPO from January 1, 2024. This means that eligible retirees are entitled to retroactive benefits starting from January 2024, even though the law was enacted in January 2025. As a result of this retroactive repeal, many affected individuals have received one-time retroactive payments covering benefits back to January 2024. For example, a retiree whose benefits were reduced by $500/month could receive a lump sum of $6,000–$9,000 in back pay, depending on when their payments are adjusted. Additionally, increased monthly benefit payments are set to begin in April, reflecting the adjustments from the repeal of WEP and GPO.

How to Take Advantage of Retroactive Benefits

Those who have not yet filed for Social Security benefits may be able to claim retroactive benefits for up to six months if they file soon. This means eligible retirees may want to explore their options to potentially maximize their benefits. For example, some individuals—especially spouses who never applied for benefits (like spousal or survivor benefits) in the past because they were previously disqualified—may now be eligible. Filing now could unlock benefits they were once denied.

While not all retired public employees will be affected by this change, those who are could gain significant financial relief. If you or someone you know falls into this category, now is the time to review Social Security eligibility and your filing options. If you haven’t previously filed for benefits, it’s important to act—these changes won’t apply automatically unless you apply.

When Can You File for Social Security?

You can file for Social Security at any time of the year once you become eligible. Social Security benefits are not tied to a specific enrollment period like Medicare; you can apply as soon as you meet the age or other eligibility requirements.

If you want to start receiving benefits at a specific time, the Social Security Administration (SSA) recommends applying three to four months in advance to allow for processing. You can apply:

• Online at SSA.gov
• By phone at 1-800-772-1213
• In person at your local Social Security office (appointments recommended)

A fiduciary wealth advisor can assess your overall financial situation to determine whether it makes sense to claim benefits now. To review this, your advisor will review a recent Social Security statement to collect your full Social Security earnings history. The advisor can then propose claiming strategy options and recommend one with the highest probability of success.

Help Retirees Claim Their Benefits

If you know someone who might benefit, we encourage you to share this information with them. If you personally could benefit from this legislation, a wealth advisor can help determine how this impacts your retirement planning and what steps you may need to take next.

If this law might apply to you but you're not sure, speaking with an advisor now can help clarify your eligibility so you don’t miss out on any retroactive benefits available. If you are not currently working with an advisor, we would love to help you. Please schedule a short phone call or virtual conversation with our Client Development team.

Source: ssa.gov

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