Most Americans only see their Social Security benefits increase in January due to the annual cost-of-living adjustment (COLA). However, this month, 3.2 million people—including retired police officers, firefighters, teachers, and other government employees—will see a significant increase in their payments. This includes a retroactive payout for some.
The increase will happen automatically for most beneficiaries. However, if you’re eligible for the boost, taking one key step can help ensure you receive your money as quickly as possible.
Social Security Fairness Act Changes Benefits
In the final days of his presidency, former President Joe Biden signed the Social Security Fairness Act. This law eliminated two major rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules previously reduced Social Security payments for individuals who received government pensions from jobs that did not contribute to Social Security.
The new law is retroactive and applies to benefits paid from January 2024 onward. Initially, the Social Security Administration (SSA) estimated it could take up to a year to update beneficiaries’ records and issue payments. However, due to automation, many seniors will receive their retroactive payments by the end of this month.
How Much Will the Benefit Increase Be?
The exact increase depends on each person’s income history and past reductions due to WEP and GPO. On average, affected seniors will see a $360 monthly increase, with some receiving as much as $1,000 extra each month.
The SSA will also begin issuing permanent monthly benefit increases starting in April. Since Social Security pays benefits one month after they are due, the April payment reflects the March increase.
How to Know If You Are Eligible
If you qualify for this adjustment, you should receive one or two notices from the SSA explaining the changes.
For those who recently applied for benefits, SSA may not have withheld any money from their checks under the old system. In that case, there will be no retroactive payment, but they will still receive the new higher benefit amount in April 2025.
Check Your Payment Information
The SSA will deposit any retroactive payments into the bank account it has on file for you. If you want the money sent to a different account, update your payment details as soon as possible.
The fastest way to do this is through your my Social Security account. You can also update your information by calling the SSA or visiting a local Social Security office.
What If You Haven’t Applied for Benefits Yet?
If you have not yet applied for Social Security benefits, you must complete the application process before receiving any money.
- Retirement benefits: You can apply online.
- Spousal benefits: You must call the SSA or visit a Social Security office in person.
What to Do If You Don’t Get Your Money Soon
The SSA advises waiting until April before reaching out with questions about missing retroactive payments. Also, wait until after receiving your April payment before inquiring about your new benefit amount.
Some cases may take up to a year to process. Complex cases require manual adjustments, which can cause delays.
The SSA may also request additional information regarding your pension amount. Responding quickly to these requests will help speed up the process.
How to Get the Most from Social Security
Many retirees miss out on extra Social Security benefits. Certain strategies can significantly boost your retirement income. One simple tip could even add as much as $22,924 extra per year to your benefits.
If you’re behind on retirement savings, it’s important to learn about these strategies to maximize your income and secure a more comfortable future.
