For thousands of American teachers and police officers, retirement benefits had been lower than expected for years. Many had also worked jobs where they paid Social Security taxes during their careers. However, special rules for public employees reduced part of their federal benefits. Some retirees had even lost their entire eligibility for spousal benefits.
Retired teachers and police officers began to receive larger Social Security payments in 2025 after the Social Security Fairness Act repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The law was signed on January 5, 2025, and the changes apply to benefits payable as of January 2024.
According to the Social Security Administration, more than 3.1 million payments totaling $17 billion had been issued by July 7, 2025.
The increases varied among beneficiaries. Some retirees saw their monthly benefits rise by several hundred dollars. Others qualified for more than $1,000 in additional monthly benefits. Many also received a one-time retroactive payment.
Why Did WEP and GPO Reduce Social Security Benefits?
Certain teachers and police officers contributed to separate state pension systems during their careers. Their earnings in those positions were exempt from Social Security taxes.
Problems arose when the same individuals qualified for federal retirement benefits based on other employment.
WEP modified the formula used to calculate personal Social Security retirement benefits. For people with no more than 20 years of qualifying Social Security-covered employment, the first percentage in the benefit formula could drop from 90% to 40%. Workers with at least 30 years of qualifying employment were exempt from the WEP reduction.
GPO affected benefits paid to spouses and surviving spouses. Under that rule, Social Security spousal benefits were reduced by two-thirds of the recipient’s qualifying government pension. Consider a retired teacher who receives a $2,400 monthly government pension. She also qualifies for $1,400 in Social Security survivor benefits based on her deceased husband’s record.
Under the old GPO rule, the reduction would have been $1,600. Her survivor benefit would have been eliminated entirely.
After the repeal of GPO, she could receive the full $1,400 per month, provided she meets all other eligibility requirements. That amounts to $16,800 annually.
Which Retirees Received an Increase?
The change affected people who receive pensions based on employment outside the Social Security system and also qualify for federal benefits.
The most common groups included:
- Public school teachers covered by separate state pension systems.
- Police officers whose Social Security benefits had previously been reduced.
- Widows and widowers whose survivor benefits had been reduced by GPO.
- Certain federal employees covered by the Civil Service Retirement System.
According to the SSA, approximately 72% of state and local government employees were already covered by Social Security. Their benefits had not been affected by the old provisions. For that reason, the type of pension coverage a person had during their career is a key factor in determining eligibility.
How Much Were the Retroactive Social Security Payments?
According to an official SSA report, more than 1.12 million beneficiaries had received retroactive payments by March 4, 2025. Total payments exceeded $7.5 billion.
The average one-time payment at that stage was $6,710.
Individual amounts depended on the previous benefit reduction and the number of months eligible for an adjustment.
Watch the video below for more information about the Social Security Fairness Act and the retroactive payments issued to eligible retirees
How Much Extra Money Can a Social Security Increase Provide?
| Monthly Increase | Total Over 12 Months | Total Over 18 Months |
| $150 | $1,800 | $2,700 |
| $400 | $4,800 | $7,200 |
| $750 | $9,000 | $13,500 |
Source: Illustrative calculations based on SSA benefit adjustment rules. Amounts assume a consistent monthly difference throughout the period, without annual COLA adjustments. Actual retroactive payments depend on individual eligibility.
Most existing beneficiaries began to receive adjusted monthly benefits in April 2025, for the March benefit period.
By July 2025, the SSA had completed the main adjustment process for approximately 2.8 million existing beneficiaries.
The Application Date Could Affect the Retroactive Payment Amount
Retirees who had never applied for Social Security benefits faced a particular problem. Some had decided against applying because GPO would have eliminated their monthly benefits entirely. The Social Security Fairness Act did not change the general rules for retroactive benefit eligibility.
For certain retirement and spousal benefits, retroactive payments are limited to a maximum of six months before the application month.
For example, a retiree who first applied in February 2025 could qualify for benefits as far back as August 2024, provided all eligibility requirements were met.
If the person had applied earlier and had an established entitlement throughout 2024, the adjustment could have covered additional months.
For someone entitled to $1,000 per month, seven additional months would represent a difference of $7,000.
Larger Payments May Affect Taxes and Other Benefits
A retroactive Social Security payment can increase taxable income in the year it is received.
Under IRS rules, the taxable portion of a lump-sum payment must be reported for the year the money was received. A special method called a lump-sum election may allow a more favorable tax calculation for amounts attributable to previous years.
Retirees who receive Supplemental Nutrition Assistance Program (SNAP) benefits should check how their higher monthly income affects program eligibility.
Medicare deductions also deserve attention, especially when Part B premiums are deducted automatically from Social Security payments. Annual COLA adjustments also affect future gross benefit amounts.
What Should Retirees Check After the Benefit Adjustments?
The main round of payments was completed during 2025. However, individual benefit calculations and previously unfiled applications remained important for some retirees. Three specific questions are worth addressing.
What If You Still Haven’t Received an Increase?
Review your previous SSA benefit notices and payment records through your my Social Security account.
If your benefits were previously reduced under WEP or GPO and no adjustment appears in your records, contact the SSA at 1-800-772-1213.
Do You Need to Submit a New Application?
If you were already receiving benefits reduced by WEP or GPO, the adjustment was generally automatic.
If you never applied, you need to verify your eligibility and review the application process. Your application date may determine when payments begin.
Will the Increase Continue in Future Years?
Yes. The repeal of WEP and GPO permanently changed how certain Social Security benefits are calculated.
The adjusted benefit becomes the basis for future payments, subject to regular annual adjustments and other applicable rules.
Conclusion
The repeal of WEP and GPO brought significant income increases to some retired American teachers and police officers. For certain beneficiaries, the change meant several thousand dollars in additional income each year.
If your Social Security benefits were previously reduced, review your new monthly amount and the period covered by your retroactive payment. For retirees who have yet to apply, the application date can have a substantial financial impact.
