Millions of Social Security Administration (SSA) beneficiaries receive surprise deposits in their bank accounts, averaging around $6,000. The unexpected payments result from a new law that went into effect earlier this year, eliminating two provisions that previously reduced Social Security benefits for certain retirees who also receive pension income. The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) had impacted over 3.2 million people with pensions based on work not covered by Social Security, meaning they did not pay Social Security taxes on those earnings.
The new law has removed these provisions, increasing benefits for those affected. According to the SSA, only people who receive a pension based on work not covered by Social Security may qualify for the benefit increases. This primarily includes teachers, firefighters, and police officers in many states, federal employees covered by the Civil Service Retirement System, and individuals whose work was covered by a foreign social security system.
Surprise $6,000 deposits for beneficiaries
About 72 percent of state and local public employees already work in Social Security-covered jobs, where they pay Social Security taxes and are not affected by WEP or GPO. Due to the new law, these individuals will not receive a benefit increase.
The SSA began issuing the retroactive benefits on February 25, 2025, with most beneficiaries now seeing these payments in their accounts. The agency has announced that if a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment by the end of March, covering the benefit increase retroactive to January 2024, when WEP and GPO no longer applied. Beneficiaries should also receive a letter explaining the payment, although many have reported receiving the deposit before the explanatory letter.
The SSA is warning about possible scams that may arise due to these payments, stating that they will “never ask or require a person to pay either for assistance or to have their benefits started, increased, or paid retroactively.
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