Starting March 2025, millions of Social Security beneficiaries in the US will see changes to their payments due to the implementation of the Social Security Fairness Act and adjustments to overpayment recovery. These changes, which combine economic relief and fiscal control measures, raise expectations and concerns among millions of retirees, public employees, and people with disabilities (and their surviving family members, if applicable).
The Social Security Fairness Act, passed with bipartisan support, eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which reduced benefits for over 3.2 million public sector retirees. These rules will apply to federal employees such as teachers, firefighters, and police officers whose pensions do not contribute to the Social Security system. The WEP and GPO did not apply to retired private sector workers, so they will not benefit from them.
Larger Social Security payments after elimination of unfair withholdings
The repeal, effective January 2024, requires the Social Security Administration (SSA) to settle late payments to those who were penalized. According to SSA data, over $7.5 billion in compensation has been distributed to 1.1 million individuals as of March 2025, with average amounts ranging from $6,700.
Acting Commissioner Lee Dudek emphasized the importance of implementing the law quickly, citing the aggressive schedule to issue retroactive payments in February and adjust monthly benefits in April. However, advocacy groups have questioned the SSA’s ability to resolve pending cases without errors.
In 2025, the maximum Social Security retirement payment is $5,108, with average payments of $1,976 for workers, $1,832 for survivors and elderly spouses, $3,761 for widowed mothers and fathers with two children, and $1,580 for disabled individuals receiving SSDI.
Bad news for others: Social Security cuts are coming for some beneficiaries
In addition to compensations, the SSA will reinstate the total withholding of benefits to recover overpayments starting March 27, 2025, reversing the 10% limit set in 2024. This measure affects retirees, survivors, and people with disabilities, and it may cause some to lose their temporary income.
This applies to beneficiaries who have been mistakenly deposited more money than they are entitled to, resulting in a “overpayment.”The Social Security Administration does not consider this money lost, but rather recovers it through mechanisms like this.
The policy has sparked concern among legislators and organizations. They claim it will have an impact on older and disabled adults whose primary source of income is Social Security. “It is a dangerous regression that ignores the vulnerability of those who receive these payments,” an AARP spokesperson told local media.
The 100% withholding applies to overpayments made after March 27. Those with previous payment plans will keep the 10% withholding. The SSA excludes the Supplemental Security Income (SSI) program from the change, retaining the 10% cap. The agency began sending postal notifications to those affected.
