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Social Security sends billions of dollars in Retroactive Payments: Here's the average amount

Correcting decades of reduced benefits

Social Security sends billions of dollars in Retroactive Payments: Here's the average amount
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The Social Security istration (SSA) has made significant strides in implementing the Social Security Fairness Act, ensuring that eligible recipients receive long-overdue benefits.

As of March 4, 2025, the SSA has already distributed more than $7.5 billion in retroactive payments to over 1.1 million people, marking a major step toward correcting past reductions caused by outdated provisions.

The repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) is at the heart of this historic effort. These provisions had previously reduced or entirely eliminated Social Security benefits for over 3.2 million people who received pensions from non-covered employment-meaning they worked in jobs that did not require Social Security taxes.

With the Fairness Act now in effect, these individuals are finally receiving fair and full Social Security payments.

Lee Dudek, the Acting Commissioner of Social Security, emphasized the istration's commitment to swiftly enacting the new law and ensuring beneficiaries receive what they are owed.

"President Trump made it very clear he wanted the Social Security Fairness Act to be implemented as quickly as possible," Dudek stated. "We met that challenge head-on and are proudly delivering for the American people."

So far, the average retroactive payment issued has been $6,710 per recipient, helping millions of retirees regain financial stability. While payments continue to be processed, the SSA has also confirmed that higher monthly benefits will begin in April, covering March benefits for recipients.

Correcting decades of reduced benefits

The repeal of WEP and GPO fundamentally changes the financial outlook for retirees who previously faced unfair benefit reductions. Under these repealed provisions, individuals who worked in state and local government jobs, teaching positions, and other non-covered employment often saw significant Social Security cuts-despite working in jobs where they had also contributed to pension systems.

With these provisions now eliminated, millions of retirees can expect full benefits moving forward, restoring financial security for those who had been impacted.

The SSA will continue distributing retroactive payments to remaining eligible individuals and ensure that all qualifying beneficiaries receive the full payments owed to them. With higher monthly Social Security benefits beginning in April, the agency is set to fully implement the Fairness Act in the coming months.

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