Social Security change means big money for some retirees. Are you one of them?
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Social Security change means big money for some retirees. Are you one of them?
Kat AokiJanuary 26, 2026 at 4:13 PM
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Social Security change means big money for some retirees. Are you one of them? (DNY59 via Getty Images)
As tax season kicks off and Americans start thinking about their 2025 returns, more than 3 million public sector retirees are seeing a welcome change: bigger Social Security checks, thanks to the Social Security Fairness Act (SSFA).
If you’re among the teachers, firefighters, police officers and federal Civil Service retirees who receive pensions from work that didn't pay into Social Security, thousands of dollars more per year could be heading your way. Here’s what you about when your money arrives and how much to expect.
⭐️ Must read: 7 big changes to Social Security in 2026 (one that could shrink your check)
What is the Social Security Fairness Act?
Signed into law on January 5, 2025, the Social Security Fairness Act wiped out two controversial rules — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that have quietly cut into Social Security benefits for decades.
The WEP and GPO were originally designed to prevent "double dipping" — the idea that people shouldn't collect both full government pensions and full Social Security benefits at the same time.
But public sector workers argued these rules were fundamentally unfair, penalizing workers who split time between specific government jobs that didn't pay into Social Security and private-sector jobs which did.
Now those rules are history, with benefits recalculated back to January 2024.
🔍 Read more: ’Will Social Security run out of money?’ 5 common fears vs. facts
Are you one of the 3 million who qualify?
The SSFA applies to you if you receive a pension from government work that didn't contribute to Social Security. This distinction is important, because not all government jobs are the same when it comes to Social Security coverage, including:
Retired government workers whose jobs weren't covered by Social Security
Spouses getting benefits based on their partner's non–Social Security government work
Widows and widowers in the same situation
Who won't benefit from the SSFA
The majority of government workers — about 72% of state and local employees — already pay Social Security taxes and were never hit by these penalties, so they won't see changes to their benefits. This includes most federal employees and the majority of state and local government workers nationwide.
🔍 Read more: 9 states that still tax retirees' Social Security (and one that's quitting in 2026)
What you'll receive — and when to expect it
The SSFA provides two types of financial benefits: ongoing monthly payment increases and retroactive lump sum payments covering back through January 2024, when the WEP and GPO were eliminated.
The rollout began early last year and moved faster than expected. The SSA issued lump-sum payments first, covering the retroactive period of January 2024 through December 2024. By early March, more than 1.1 million people had received their lump sum payment, with an average amount of $6,710, according to Kiplinger.
By July 2025, the SSA completed sending over 3.1 million payments totaling $17 billion to beneficiaries eligible under the Social Security Fairness Act — five months ahead of schedule. This includes both the retroactive lump-sum payments and setup for new ongoing monthly benefit hikes.
The new higher monthly payments kicked in by April 2025 and continue going forward, ranging from modest increases of $50 to $100 to more than $1,000 each month.
The monthly increases vary widely depending on several factors:
What type of benefits you're getting — retirement, spousal or survivor benefits may have different calculations
How big your government pension is — generally, the larger your pension, the more you were likely penalized (and the more you'll gain now)
When you retired — timing affects which rules apply to you
🔍 Read more: 2026 Social Security COLA is here — but it won't be enough for most retirees
⏳ Still waiting for your money?
You might be among those who filed new claims after the law passed. The SSA has processed 92% of these new applications and is working through new cases systematically. If you haven't yet received your payment, call the SSA at 800-772-1213.
🔍 Read more: 7 smart Social Security strategies that even seasoned retirees miss
What you need to do (if anything)
Most people don't need to take action. If you were already getting reduced benefits and the SSA has your current contact information and bank details, they've likely handled everything automatically.
But if the SSA doesn’t have your correct details or you’ve never applied for Social Security because of WEP or GPO penalties, call 800-772-1213 right away and say "Fairness Act" when asked what you need. You'll be connected with a specialist trained on these cases.
Unsure if you ever applied? Better to check than miss out on money you've legitimately earned.
🔍 Read more: 5 retirement withdrawal steps to make your money last longer
What to watch out for
While the SSFA brings welcome relief to many, there are a few issues to watch for as implementation continues and scammers inevitably try to take advantage of the situation:
Medicare changes. Once benefits increase, Medicare will deduct premiums from your Social Security check again. However, you should keep paying your premiums directly until you receive an official notice from SSA telling you the switch has happened.
Scam alert. Be aware that fraudsters are targeting beneficiaries. The SSA never charges fees for processing benefits or asks for payment to expedite services. If someone calls offering help for money, hang up.
Complex cases. Some situations require manual review. The SSA completed automated processing by July 2025, but complex cases may take longer. If you still haven't received your payment, call 800-772-1213.
🔍 Read more: Social Security’s blind spot: 9 hidden costs that catch retirees off guard
Bottom line: Billions are being paid — don't leave yours unclaimed
The SSFA represents one of the biggest Social Security expansions in recent history, with more than $17 billion already delivering financial relief to millions of retirees. But implementation isn't over — new claims are still being processed, and some retirees may be missing from the initial rollout.
If you think you might qualify but haven't heard anything yet, don't assume you're not eligible. With billions in back payments and ongoing increases at stake, it's worth a phone call to find out where you stand.
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About the writer
Kat Aoki is a finance writer who's written thousands of articles to empower people to better understand technology, fintech, banking, lending and investments. Her expertise has been featured on sites like Lifewire and Finder, with bylines at top technology brands in the U.S. and Australia. Kat strives to help consumers and business owners make informed decisions and choose the right financial products for their needs.
Article edited by Kelly Suzan Waggoner
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Source: “AOL Money”
