Social Security retroactive payments go out to more than 1M

More than 1 million Americans have received retroactive Social Security payments as a result of the Social Security Fairness Act that was signed into law by then-President Joe Biden on Jan. 5. At the time he signed the law, Biden said the average monthly payment to those impacted would increase by average of $360.

In a news release issued this week, the Social Security Administration said more than $7.5 billion in retroactive payments were made to 1.12 million recipients as of March 4. The average retroactive payment is more than $6,700

The Social Security Fairness Act repealed the Windfall Elimination Provision and Government Pension Offset.

The Windfall Elimination Provision reduced benefits for individuals who receive pensions from public-sector jobs—such as those held by state and federal employees—that did not require payroll tax contributions. This reduction applied even if they contributed to Social Security through other employment and qualified for benefits.

The Government Pension Offset educed spousal or survivor benefits for retired federal, state, and local government workers who did not pay into Social Security funds through their payroll taxes.

An estimated 3.2 million Americans are impacted by the law change, the SSA said. The SSA said it is continuing to pay the retroactive benefits to eligible beneficiaries, whose monthly payments will increase beginning in April, reflecting March's benefit.