The IRS has begun issuing retroactive payments to over 3.2 million Americans, correcting past restrictions on Social Security benefits. These payments, which total $7.5 billion, were made possible by the Social Security Equity Act, a bill that repealed rules affecting teachers, police officers, firefighters, and public employees. This guide explains who qualifies, how much they’ll receive, and when payments will arrive.
Retroactive Payments: What You Need to Know
The Social Security Administration (SSA) confirmed that over 1 million Americans have already received payments, with an average of $6,710 per person. These payments were backdated to January 2024 to provide financial relief to retirees and workers affected by outdated pension laws.
Additionally, a new law signed by President Joe Biden ensures a permanent increase in Social Security benefits for 2.8 million people starting in April 2025.
Who Benefits from the Social Security Equity Act?
This new law eliminates two major provisions that reduced Social Security payments for certain workers:
1. Windfall Elimination Provision (WEP)
- Previously reduced Social Security benefits for public employees with pensions.
- Now repealed, meaning higher payments for retirees who worked in public sector jobs.
2. Government Pension Offset (GPO)
- Previously cut spousal and survivor benefits for those with government pensions.
- Now eliminated, allowing affected spouses to receive full benefits.
Who Qualifies?
- Public employees like teachers, police officers, and firefighters.
- Federal and state retirees who were affected by WEP or GPO.
- Spouses of affected retirees, who can now receive full survivor benefits.
These changes impact 3.2 million people, ensuring fairer Social Security payments for those who worked in public service.
When Will You Receive Your Payment?
While the IRS has already started issuing payments, it may take up to a year for all benefits to be updated. Here’s what to expect:
| Payment Type | Amount | Processing Time |
|---|---|---|
| Retroactive Payment | Up to $6,710 (average) | Backdated to January 2024 |
| Increased Benefits | Varies per person | Starting April 2025 |
The Social Security Administration (SSA) will continue updating payments throughout 2024 and 2025.
IRS Workforce Cuts – What’s Happening?
In a separate development, the IRS is reducing its workforce by nearly 50%. This could impact over 90,000 employees due to layoffs, buyout incentives, and furloughs.
- Reason for Cuts: Part of a government plan to streamline federal agencies.
- Potential Impact: Reduced IRS staff may delay tax refunds and processing in the future.
Former IRS Commissioner John Koskinen warned that cutting staff could hurt tax collections and IRS efficiency.
Conclusion
The IRS has already issued over $7.5 billion in retroactive Social Security payments to 1.1 million Americans, with more payments coming soon. The repeal of WEP and GPO means fairer benefits for 3.2 million retirees and public workers. However, with the IRS workforce being cut, future processing delays may occur. If you’re eligible, check with the SSA to ensure your updated benefits arrive on time
FAQ’s
Who qualifies for the IRS retroactive payments?
Public employees, retirees, and their spouses affected by WEP and GPO now qualify for increased Social Security benefits.
How much will eligible Americans receive?
The average retroactive payment is $6,710, with ongoing increases starting in April 2025.
Will the IRS layoffs affect Social Security payments?
Potential delays may occur due to staff reductions, but Social Security benefits should remain unaffected