Finally, the Social Security Fairness Act has arrived! This will mean a historic change for 2.8 million retirees who, for years, have seen how they received less money than they deserved. Approved and signed by former President Joe Biden before leaving the White House, the measure reverses cuts that for years affected public employees like teachers, police officers, firefighters, and railroad workers, whose Social Security benefits had been reduced or even eliminated for receiving alternative pensions. And yes, it is all good news because starting in April, those affected began to receive their money through retroactive payments, putting an end to a long path of complaints and reports of the injustice they experienced.
What is the Social Security Fairness Act?
Ok, let us explain it to you. Until now, retirees who worked in the public sector and did not contribute to Social Security during part of their working life suffered cuts under two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which meant their retirement benefits were practically zero.
But this new law repeals these two mechanisms and allows beneficiaries to receive the full amount of their benefits without unjustified reductions.
And retroactive!
The measure not only corrects future reductions but also guarantees retroactive payments from January 2024. Thus, millions of retirees have already begun to receive the checks they truly deserved after years of work in public service.
More money every month for thousands of families
Along with the higher benefits comes an important detail: retirees whose payments are back to normal might see adjustments in their Medicare premiums. Previously, these retirees had to pay their premiums directly to the Centers for Medicare and Medicaid. Now, the premiums will start to be automatically deducted from Social Security checks, though not immediately, so this is another small victory for these retirees!
What should you do
If you are one of the affected beneficiaries, the SSA recommends continuing to pay the Medicare premiums directly until you receive the official notification that the automatic deduction process has begun. For those who paid in advance, the SSA has also confirmed it will issue refunds once these adjustments take effect, so you have nothing to worry about.
Income-related adjustments: what this means for your Medicare premium
The increase in Social Security payments may cause some retirees to cross the income threshold that determines the monthly Medicare premium, activating the so-called IRMAA (Income Related Monthly Adjustment Amount). This could result in higher premiums for those who exceed certain income levels.
How much might you pay now?
For 2025, the standard Medicare premium is $185 per month, covering 25% of the total cost of Parts B and D. But for retirees with higher incomes, the premium can increase to cover between 35% and 85% of that cost.
An act of justice, finally!
If you’re wondering what makes this law special, it’s a way to recognize our fellow citizens who, for years, have been on the front lines working for the state, making sure that essential public services worked properly. So, it was only fair to thank them in some way, especially because it was unfair to them. It was money that belonged to them! And now, finally, justice is starting to be done.
So, once the law was finally approved, the SSA is sending notifications case by case to inform retirees about the retroactive payments and the new amounts they will receive. If you have not yet received information, stay alert for official communications and check directly with the SSA if you have any questions. What do you think about this? Let us know !