Bill Callahan, a retired teacher from Middlebury, Connecticut, has spent four decades waiting for Congress to pass a law that would stop the reduction in his Social Security benefits due to his pension.

The Social Security Administration (SSA) has now informed Callahan and approximately three million other public sector workers that they will need to wait at least another year to see the benefits promised by the Social Security Fairness Act. This Act removes the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which together lower Social Security benefits for specific retirees who also draw pension income. Collectively, WEP and GPO affect nearly 3 million individuals, including police officers, firefighters, postal workers, and public school educators.

The SSA clarified that since the Social Security Fairness Act’s “effective date is retroactive (to January 2024), SSA is required to adjust both previously paid and future benefits.” They added, “While SSA is currently assisting some affected beneficiaries, due to budget constraints, it could take over a year to complete the adjustments and distribute all retroactive payments.”

A disappointed Callahan, 67, remarked, “Ultimately, this will likely be just a temporary solution for three million citizens. Congress will probably create another ineffective fix, making another group the target of criticism.”

How much more could affected workers expect to receive each month?

The increase in monthly income for each affected worker varies based on their specific Social Security benefits and the size of their pension, according to the SSA.

“Some individuals may see only a slight increase in their benefits, while others could receive over $1,000 more each month,” the SSA noted.

Why is there a hold-up in disbursing the extra Social Security benefits?

The necessary funds and staffing to implement these changes are not available, according to the SSA.

“The timely execution of the law and the ability to maintain daily customer service hinges on funding,” the agency explained. “The Act did not allocate necessary funds for execution. Addressing this new workload without additional resources is compounded by SSA’s persistent staff shortages and a hiring freeze that has been in place since November 2024,” which is expected to persist.

The SSA must reassess both past and future benefits for nearly three million people.

“They are facing a complex accounting challenge,” Callahan pointed out. “Consider the scope: one year of back payments, plus two years of cost-of-living adjustments (COLAs), and issues surrounding spousal benefits, among others.”

What’s the next step?

Close to 3 million Americans will continue to wait and will receive the same Social Security benefits as if the legislation had not been enacted.

Moreover, all Social Security recipients, including the approximately 68 million individuals who are unaffected by the new law, “will experience delays and longer wait times as the SSA focuses on processing this new workload,” the agency indicated.

When did the Social Security Fairness Act become law?

The Social Security Fairness Act was signed into law by former President Joe Biden on January 5, intended to abolish WEP and GPO, which were initially established in 1983.

• The Windfall Elimination Provision (WEP) significantly lowers Social Security benefits for individuals who have pension income from jobs, typically in the public sector, where they did not pay Social Security payroll taxes. This reduction can be substantial, reaching up to half of the pension amount.
• The Government Pension Offset (GPO) reduces spousal or survivor benefits for individuals with non-covered pensions. While GPO impacts fewer people, it can decrease Social Security benefits by two-thirds of the pension amount, potentially resulting in a zero benefit if two-thirds of the pension exceeds the Social Security benefit.

These regulations were designed to prevent Social Security from over-paying individuals who had non-covered pension jobs, as stated by policy experts. People earning from jobs not contributing to the Social Security system may appear as low earners.

Since Social Security replaces a higher percentage of prior income for workers with lower earnings compared to higher-paid workers, advocates of the rules maintained that those who enjoyed substantial government salaries for years should not benefit the same way in Social Security calculations as long-time low-income workers.

The bipartisan advocacy group Committee for a Responsible Federal Budget (CRFB) cautioned that the Act could incur costs of $196 billion over the coming decade, hastening the insolvency of Social Security by about six months and escalating automatic benefit cuts when they occur.

Medora Lee is a reporter focusing on finance, markets, and personal finance.