Years of real political struggle have gone by until the Social Security Fairness Act was finally passed by the United States Congress. And the good news is that retroactive payments are already starting to reach public sector retirees. What was happening? Until now, there was a measure that reduced or directly cancelled the Social Security benefits public sector workers could receive: the WEP and the GPO.
But all that is behind us now, and teachers, firefighters, police officers and other public sector workers (who have been the heart and engine of this country) will finally see increases in their monthly payments. We’re going to tell you everything that’s happening!
What is the Social Security Fairness Act?
Until now, there were two mechanisms that penalized public workers when calculating their retirement pension after completing all their working years. The WEP (Windfall Elimination Provision) had been reducing the monthly amount for those who worked without Social Security coverage; and the GPO (Government Pension Offset), for its part, cut and eliminated the benefits for spouses or survivors.
This measure especially affected people who alternated between public and private sector jobs and widows and widowers who depended on these payments. As you can imagine, this was unfair and discriminatory, and it took years to solve it. But finally, they have!
Who is receiving the payment?
- Of course, those public employees who for years have been affected by the WEP and had accumulated enough quarters to receive Social Security.
- Also, those spouses and survivors whose benefits were eliminated by the GPO.
- Workers who spent their careers between public and private jobs.
How much will they receive?
The amounts will vary depending on how long they were affected by these provisions. Payments are being recorded as lump sums and in some cases the amount is reaching up to $40,000!
How are these payments calculated?
The SSA has stated that the payments are calculated by taking into account the benefits withheld during those WEP and GPO years, and from the date each person began receiving Social Security payments, of course, also adjusted for cost-of-living increases. That’s why each person will receive a different amount of money and we cannot determine an exact figure.
The process has been implemented in phases, and the oldest retirees will be the first to receive their money. The SSA has reported that it is not necessary to submit a new application to receive the payment, but some beneficiaries may be contacted to confirm employment data or information about their pensions.
And if I haven’t received my payment?
You might be eligible and still haven’t received the payment notice, so you can check your information on the My Social Security website or go directly to ask at a local SSA office. Of course, we recommend the first option so you can save time.
Organizations like the National Active and Retired Federal Employees Association (NARFE) and the American Federation of Teachers (AFT) recommend staying alert to mail and bank activity, and reporting any possible error immediately.
A historic debt
This case was not just about money, but about giving back to public sector workers for their years of service to the country. It is, therefore, a right that should never have been denied to them, and it’s been many years (even decades) since they began demanding this money.
Now, it marks a before and after in the search for fairness. These retroactive payments might not mean a lot, but they definitely taste like victory and a life of work in service of others.