US Social Security Releases 1.1M Retroactive Payments: Here's the Average Amount

The Social Security Administration (SSA) announced in a March 4 press release that it paid over $7.5 billion in retroactive payments to 1.12 million people with public pensions, including teachers, firefighters, police officers, federal employees covered by the Civil Service Retirement System, and individuals whose work was covered by a foreign social security system.

The average retroactive payment was $6,710 per person. The agency continues to release retroactive benefits to eligible recipients and is set to start paying higher monthly checks in April, reflecting March benefits.

What Are These Retroactive Social Security Payments?

The retroactive payments and monthly benefit increase stem from the Social Security Fairness Act, a new law signed earlier this year by former U.S. President Joe Biden.

The law eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) policies, which previously prevented over 3 million public pension recipients from collecting their full Social Security benefits due to receiving a pension from work that wasn't covered by Social Security. These rules also reduced payouts for workers' surviving spouses and family members.

The latest benefits hike is retroactive to December 2023, meaning eligible beneficiaries who previously received partial benefits will now receive full payments dating back a year.

President Trump made it very clear he wanted the Social Security Fairness Act to be implemented as quickly as possible, said Lee Dudek, Acting Commissioner of Social Security, in the press release. We met that challenge head-on and are proudly delivering for the American people.

Social Security Benefit Hike Projections Under New Law

Before signing the Social Security Fairness Act, Biden said that repealing WEP and GPO policies would increase the average monthly check by $360 for over 2.5 million people, calling it a big deal in middle-class households.

The exact benefit increase depends on the type of Social Security benefits received and public pension amounts.

The SSA previously stated that some people may see only slight increases in their monthly benefits, while others could qualify for an increase of up to $1,000.

The agency emphasized that the new benefits will be deposited into bank accounts registered with Social Security, and recipients will receive detailed notices about the changes in the mail. These notices are expected to arrive a few weeks after payments are made, as the SSA updates its system with automation to speed up the process.

The SSA also urged eligible recipients to wait until April before inquiring about their retroactive payments, as more payments are scheduled to be released throughout March.

Originally published on IBTimes UK