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.
Curious to find out if I will be receiving anything from this act.
I’m wondering the same thing. I’m on SSI and have multiple medical issues and have been as far as 16 hrs from home to go to Mayo. It’s not just the Doctor bills but a week there and traveling there for talking at least $2000 every time and my disability payment just does not get it. I am drowning literally. It’s terrible to have pay your bills or being able to eat and put food in the house or going to your doctor seven different illnesses five of them mean terminal. So do you pay your bills?, Eat., or get your medical help and meds? Something has to be done quickly!
So I hope people will get there social security checks for April they so need there money these people will starve without there checks so hope everyone will get there checks the seniors depend on their money that they worked so hard for.please don’t let there checks be delayed.
Give that money back to the people so they can see why your making all these cuts. I think your doing a great job!!
Some people have disabilities and need some help to get back on track.
Could use the help feel like left out to suffer
I thank all involved in making sure everyone gets paid.
Do we not get retroactive payments for Jan. Feb. and.March. The law states retroactive payments for ONE YEAR! NOT 9 MONTHS!
No SS check in March. Waiting for Fairness payments
It isn’t the IRS issuing retro checks, it’s the SSA for the fairness act, get you facts straight!
I think that our government is full of shit and everyone needs to be fired and removed from office except Donald Trump..
Trump we need more stimulus money especially those on SSI we are suffering not able to pay our rent light bill this is sad