Some retirees who were previously ineligible for Social Security benefits may now be entitled to thousands of dollars—but they won’t receive it unless they file for it.
Thanks to the Social Security Fairness Act, over 3 million people are set to receive increased Social Security payments. This new law removes two rules that previously reduced benefits for certain retirees with public pensions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions significantly reduced benefits, sometimes by as much as half, affecting both personal and spousal benefits.
Who Can Benefit from This Change?
The new law is a game-changer for many retirees, especially those who did not claim benefits due to WEP and GPO restrictions. However, to take advantage of these changes, individuals must actively apply.
Certified financial planner Jonathan Swanburg warns that many eligible individuals may not be aware of this update. He emphasizes that those who never filed for Social Security—such as spouses, ex-spouses, and widows or widowers—could miss out on life-changing sums.
For example, Swanburg shared a case where a widow previously stood to lose $30,000 in benefits due to the old rules. Now, she qualifies for her full payment, highlighting the substantial financial impact of this law.
Who Needs to Take Action?
If you were affected by WEP and GPO, you should check if you are now eligible for Social Security. This includes retirees who:
- Have public pensions (such as teachers, firefighters, or government employees) but also worked in Social Security-covered jobs at some point.
- Never applied for benefits because WEP and GPO would have reduced them to zero.
- Are receiving a pension but have additional work history that qualifies them for Social Security.
Financial advisors like Jeremy Finger and Scott Bishop are urging their clients to re-evaluate their eligibility. Bishop has been notifying his clients via email, encouraging them to check their status and file applications if necessary.
Steps to Claim Your Benefits
The Social Security Administration (SSA) states that those who may be owed benefits must file an application. Additionally, beneficiaries should review their personal information and earnings history to ensure they receive the correct amount.
Key steps include:
- Check Your Eligibility – If you were previously denied or never applied due to WEP and GPO, revisit your Social Security records.
- File an Application – The SSA has stated that when you file can affect when your benefits start, so acting quickly may increase your payout.
- Review Your Earnings History – Ensure the SSA has accurate records to avoid underpayments.
When Will Payments Begin?
The Social Security Fairness Act is already in effect, and retroactive payments will be issued. However, the SSA has noted that processing these claims is complex and will take time.
“Since the law’s effective date is in the past, SSA must adjust past benefits as well as future payments,” the agency stated. Because much of this work requires manual processing, delays are expected.
Final Thoughts
With millions of applications to process, mistakes are possible. Swanburg cautions beneficiaries to double-check their records, as errors in calculations could occur.
If you or a loved one could be affected by these changes, take action now. Filing an application and reviewing your eligibility could mean receiving thousands of dollars in Social Security benefits that were previously denied.
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