Thousands of Americans may be missing out on Social Security benefits to which they are legally entitled, depending on how the government interprets a major new legislation that went into force in 2025. The Social Security Administration (SSA) is under fire from politicians after imposing severe limits on retroactive payments, potentially underpaying pensioners, widows, and public service workers across the country.
The newly approved Social Security Fairness Act was intended to repeal two long-debated provisions: the Government Pension Offset (GPO) and the Windfall Elimination Provision. These policies had previously lowered or abolished benefits for millions of public workers. While the rule allows for retroactive payments going back to January 2024, many recipients are apparently receiving only six months’ worth of back pay—far less than what they may be owed.
Lawmakers urge Social Security to fix its retroactive pay policy
A bipartisan group of senators, including Susan Collins, Bill Cassidy, John Cornyn, and John Fetterman, filed a formal request to Acting Commissioner Leland Dudek, requesting the Social Security Administration to modify its retroactive payment calculations. According to the senators, countless individuals were deceived by SSA staff in prior years, resulting in missed opportunities to qualify for spousal or survivor benefits.
They contend that the SSA should use the date of the initial consultation—when recipients initially sought information—as the beginning point for back pay, particularly if agency workers provided inaccurate or outdated advice. “Spouses, widows, and widowers are now being unfairly penalised for guidance that came directly from the agency,” the bill’s authors stated.
How Much Could Social Security Beneficiaries Lose?
If the current six-month retroactive payment limit remains in place, some recipients may lose more than $5,500, based on the average monthly spousal benefit of $931. This amount reflects a severe financial setback for those who thought they were following proper processes.
Although the law was intended to restore full benefits to more than 3 million Americans, the way it is being implemented locally may fall short of that goal. Social Security offices across the country continue to enforce the six-month backpay cap, even when beneficiaries can demonstrate they were mislead. So yet, the SSA has not officially addressed lawmakers’ concerns.
