Social Security is sending one of the largest retroactive payments in its history. The Equity Act will allow millions of public sector retirees to recover money lost due to cuts. In addition, their monthly payments will increase from now on.
What is this retroactive payment?
The Equity Act, signed on January 5, 2025, eliminated the WEP and GPO rules that had cut benefits for decades. These rules affected those who also had a government pension and, in many cases, significantly reduced their Social Security payments.
Now, Social Security is returning the amounts cut between January 2024 and March 2025. According to estimates, each beneficiary will receive an average of $6,700 in back payments. In addition, monthly checks will increase by about $360; for many, this money is a late but very desired recognition.
Who qualifies and how to check?
Not everyone will receive this payment automatically. You are eligible if:
- You lost part of your benefits due to WEP or GPO.
- You received Social Security payments between January 2024 and March 2025.
- Your information and address are updated in mySSA.
If you are still working in a non-covered job, you will receive the increase only when you retire; the retroactive sum is not included.
To check your eligibility, log in to mySSA; a notice will appear when your record has been updated. You will also receive a letter with notice CP-126, detailing your new monthly benefit and the retroactive sum. Using reliable retirement calculators can help you confirm that your amount is correct.
Why are the payments arriving now?
Eliminating WEP and GPO was not quick: the bills were in Congress for more than 20 years. The final approval included funds to update SSA's old systems, some of which are more than 70 years old. Processing millions of records was complex: 9% required manual review, delaying payments until mid-2025.
Security and recommendations
With large payments, there is always a risk of scams. Remember:
- SSA never charges fees to speed up payments.
- Don't send gift cards or cryptocurrencies to anyone claiming to represent Social Security.
- Trust only information from SSA's official website.
- Call 800-269-0271 to report suspected fraud.
This law marks a historic change; millions of public sector retirees are finally receiving the full benefits they had already earned. Check your account, update your information, and decide how you will use this money that has always belonged to you. The wait has been long, but the reward is worth it.