Some federal retirees’ social security benefits may be increasing. The Social Security Administration (SSA) has announced significant changes to Social Security benefits, particularly for retirees affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which are provisions impacting federal government employees. The recent passage of the Social Security Fairness Act eliminates these provisions, offering retroactive payments and higher monthly benefits to those previously penalized. This change is especially impactful for federal retirees in Washington, D.C., Maryland, and Virginia, where a large number of federal employees reside.
What Is Changing?
Historically, the WEP and GPO provisions reduced or eliminated Social Security benefits for retirees who received pensions from non-covered employment, such as federal employees under the Civil Service Retirement System (CSRS). These retirees were penalized because their work was not subject to Social Security taxes.
Now, with the Social Security Fairness Act, these offsets are eliminated, and the SSA is expediting retroactive payments and adjustments to monthly benefits. Here’s what you can expect:
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Retroactive Payments: Many affected individuals will receive one-time payments to cover benefits denied since January 2024. These payments are expected to be deposited by the end of March.
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Higher Monthly Benefits: Starting with the April 2025 payment, beneficiaries will see an increase in their monthly Social Security checks.
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Automatic Processing: The SSA is using automation to expedite payments, though complex cases requiring manual processing may take additional time.
Who Benefits from This Change?
This change will benefit federal employees and public sector workers who were previously penalized by the WEP and GPO, making them eligible for increased Social Security benefits. Specifically, retirees in the D.C. metro area—which includes parts of Maryland and Virginia—will see the most significant impact due to the high concentration of federal employees.
The following groups will see increased Social Security benefits:
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Federal Employees under CSRS who were penalized by the WEP and GPO.
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Public Sector Workers, such as teachers, police officers, and firefighters, whose employment was not covered by Social Security.
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Individuals with Foreign Social Security Contributions whose benefits were reduced.
Civil Service Retirement System (CSRS) Retirees
Federal employees who retired under CSRS (hired before 1984) did not pay Social Security taxes, so their benefits were reduced by WEP and GPO. Federal employees who retired under CSRS and have accumulated more than five years of creditable service will see significant changes in their Social Security benefits. Many of the federal retirees in D.C., Maryland, and Virginia fall into this category and will likely see retroactive payments and increased benefits.
Federal Employees Retirement System (FERS) Retirees
Employees hired after 1984 are under FERS, which includes Social Security taxes. These retirees are not affected by WEP or GPO since they already receive full Social Security benefits.
Federal Retirees in D.C., Maryland, and Virginia
The Washington, D.C. metropolitan area, which includes parts of Maryland and Virginia, has a significant concentration of federal retirees. The changes will result in an increased Social Security benefit amount for many retirees in the region. Specifically, the region is home to 306,760 annuitants, distributed as follows:
What Should You Do?
If you are affected by these changes, here’s what you can expect:
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Check Your Bank Account: Retroactive payments should be deposited by the end of March. Individuals with substantial earnings should also review their Social Security statements to understand the impact of these changes.
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Watch for a Notice from SSA: SSA will mail notices explaining any benefit adjustments, but payments may arrive before the notice.
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Wait Until April for Inquiries: SSA recommends waiting until after receiving the April payment before contacting them with questions about your benefit adjustment.
How This Affects Retirees in D.C., Maryland, and Virginia
Given the large number of federal retirees in the region, these changes are a significant win for many local residents. For those who rely on Social Security as a primary source of retirement income, the retroactive payments and higher monthly benefits will provide much-needed financial relief.
If you or a loved one are affected by WEP or GPO, now is the time to review your retirement income strategy. For guidance on how these changes may impact your estate or long-term care planning, consult with an experienced elder law and estate planning attorney in D.C., Maryland, or Virginia.
For updates, visit the Social Security Fairness Act webpage and subscribe to alerts to stay informed about the latest developments.