In a significant development, more than 1 million Americans have received retroactive IRS payments, according to the Social Security Administration (SSA).
The payments stem from changes brought about by the Social Security Equity Act, a bill passed earlier this year, which will repeal provisions that previously restricted retirement benefits for specific workers, including teachers, police officers, firefighters, public employees, and their spouses.
Retroactive Payments to Over 3 Million Americans
The IRS has begun issuing retroactive payments to millions of Americans, with over $7.5 billion distributed to 1.1 million individuals impacted by the legislative shift. These payments are part of a broader initiative aimed at correcting past payment restrictions. The average retroactive payment amounts to approximately $6,710.
In addition to these retroactive payments, former President Joe Biden signed a law that will permanently boost Social Security benefits for over 2.8 million individuals.
While the retroactive payments are already underway, it may take up to a year for the processing and updating of benefit amounts, as informed by the SSA. These payments were backdated to January 2024, providing much-needed relief to the affected workers and retirees.
Key Provisions of the Social Security Equity Act
The Social Security Equity Act marks a pivotal moment in ensuring fairness for workers in public sector jobs, particularly those who were previously impacted by the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
Both of these provisions had been in place since the Reagan administration and negatively impacted retirees receiving pensions from public sector jobs that did not require Social Security contributions.
With the elimination of the WEP and GPO, retirees who had worked in public sector jobs such as state and federal employees, and whose spouses were similarly impacted, will now see an increase in their Social Security benefits.
These changes will benefit an estimated 3.2 million Americans. Starting in April, updated benefit amounts will apply to those whose benefits have increased due to the repeal of the WEP and GPO.
| Provision | Impact |
|---|---|
| WEP | Eliminated restrictions for public sector retirees contributing to Social Security |
| GPO | Eliminated penalties affecting spousal or survivor benefits |
| Retroactive Payments | $7.5 billion in payments distributed to over 1 million individuals |
Lee Dudek, the Acting Social Security Commissioner, expressed enthusiasm about the quick implementation of the Social Security Fairness Act, stressing its importance in providing much-needed relief to the affected individuals.
John Hatton, Vice President for Policy and Programs at the National Association of Active and Retired Federal Employees, also praised the SSA’s swift action, noting that many have waited decades for these changes.
IRS Plans for Significant Workforce Reductions
In a separate but related issue, the IRS is planning to cut its workforce by up to half. This reduction, which could impact over 90,000 employees, is being driven by a combination of layoffs, buyout incentives, and furloughs.
Efforts to streamline government operations, such as closing agencies and offering buyout incentives, are part of the Trump administration’s initiative to rapidly cut government staff through the Department of Government Efficiency, a program spearheaded by Elon Musk.
The planned workforce reduction at the IRS could have significant consequences. According to former IRS Commissioner John Koskinen, cutting tens of thousands of IRS employees could render the agency dysfunctional.
The IRS currently employs around 90,000 workers, with 65% of them being women and 56% being people of color. The agency has already laid off nearly 7,000 probationary employees who had been with the agency for less than a year.
FAQs
Who will benefit from the Social Security Equity Act?
The Act benefits public sector workers, including teachers, police officers, and firefighters, who were previously penalized under the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Over 3.2 million Americans are expected to see improvements in their Social Security benefits.
How much money has been allocated for retroactive payments?
The SSA has confirmed that more than $7.5 billion in retroactive payments has been distributed to 1.1 million people, with an average payment of $6,710.
When will new benefits begin for affected individuals?
Updated benefit amounts will begin to take effect in April for those whose benefits increased due to the passage of the Social Security Equity Act.
How many IRS workers will be laid off?
The IRS plans to reduce its workforce by up to half, potentially affecting over 90,000 employees through layoffs, buyouts, and furloughs.
This is B’s all this talk about paying those who have pensions and receiving 3 to 4 thousand a month while the real backbone of this country suffer.people like me are dieing or becoming homeless and are disabled waiting for our pay. We are dieing on the streets while those who have are given more. I am owed a lot of money from SSA but I have to wait till it’s to late to get what’s owed me. And who cares no one hard working Americans like me are being made to suffer and die it’s not right. But no one will do a story about that cause it’s not news but it’s reality.
William, if you’re owed then you’re owed just like so man y others.
They’re getting theirs and you’ll be getting yours as well. Stop moaning because others are getting theirs. Just stop.
I am so sorry about your situation. Monies from the Social Security Fairness Act only goes to those workers who paid into Social Security as not all state workers had to. I am a retired teacher and believe me the extra $400 a month previously taken from me is much needed. No one gets rich on Social Security and no teacher to my knowledge collects $3,000 to $4,000 a month either, more like $1,000. Yes they do get state retirements but again they paid into them. People who retire from the private sector were never penalized for collecting their pensions and receiving Social Security. Finally you should be eligible for disability if you are to young for Social Security. 🙏
God bless you 🙏🏻
You are Soo Soo right and hit it right on the head. They make the ALJ judges deny people who rightfully can’t work an disabled be dead or 80% body failure before considering them an making them wait years for payment being homeless but these people haven’t paid in to SSA so how are they receiveing money they didn’t pay into to begin with because there jobs didn’t require them to pay .I worked 23yrs at same box plant killing my body for them an when I got injured they just cut me loose and been waiting on SSA to make a decision on my case after almost 5yrs, 2 denials ,1 ALJ hearing in Oct.2024 ,now still waiting on answer but says ALJ couldn’t make a decision an set another court hearing in June 2025 to go over it again putting it off another year before I get an answer or payment after paying in for 26yrs total only for them to give it away to strike crying teacher ,poor police officers an federal workers .I dont know about firefighters so I can’t answer about them or speak of them but the others have been striking every year getting raise/bonus one after another while we the backbone mostly don’t get yearly raises or bonus from the corporate money hungry pigs that own these companies .Labor laws are a joke and there’s no one that cares or looks out for the hardworking men an women of this country like you ,myself and countless others left out in the cold on our own .
Im starting to think we are slaves that are told what we want to hear. The police protect them from us and keep us in line. They never get into trouble o
For what they do. They get awarded for being a criminal. Im sick of being a slave to them. We will never be truly free. We work ourselves to an early grave to make the men above all the way to the top rich. They dont care about us. Only thing they care about is the rich men next to them. We are slaves nothing more, wake up.
I’m with you on that, I tried for disability for approximately 7 years and what they did at the last review with law judge was blew smoke up my ass and said we have a new program that if you are 55 you can get SSI but their is no back pay anymore. So they blew smoke up my ass in two different ways !!!!!!!
I worked in regular jobs paying into SS for 30 years or so and then county government paying into a pension system. When I retired I received $980 from the county. My SS was reduced by the WEP to $611 for a total of $491- medical costs.I live in high priced So California so it is not much money.
I’m happy for those who will receive this increase but explain to me how these people who did not pay into SS meaning they got a nice paycheck and those of us who paid into SS aren’t deserving increases. I have worked since 16, now 71 and all the thousands deducted from my paychecks thru the years and my monthly check doesn’t cover my expenses especially with prices rising daily. Those not paying SS have the advantage over those of us who do pay SS. We ALL deserve to be awarded an increase and this piddly 10,20/ year. We wait all year for chump change for a raise that is nothing. Example: a $20 a year comes out to what, maybe $10? Use increase Medicare every year that is taken from that $20. So where do we gain. We the people have forever been ripped off by our government. Yet they have no problem when they feel so deserving to increase their pay. For doing what? I will wait.
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What about us who have been suffering with the lowest payments and are not part of the GOP or WEP. It is not fair to us