For years, retired teachers, firefighters and police officers saw their Social Security benefits reduced because of two rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
That changed when Congress passed the Social Security Fairness Act in 2024, repealing both provisions.
On paper, that meant higher monthly checks — and retroactive lump-sum payments dating back to January 2024 for people who were underpaid.
But here’s where things got messy.
Why some seniors only got six months
Under the Social Security Administration’s interpretation of the law, some beneficiaries received only six months of retroactive payments — not a full year.
According to reporting by Newsweek, about 2.8 million Americans were impacted. Many worked in public service jobs that didn’t fully participate in Social Security.
Now, Senators Bill Cassidy, John Cornyn, and John Fetterman are urging the Social Security Administration to revisit that decision and extend retroactive payments to a full 12 months.
In a letter to the SSA, the senators argued that Congress did not clearly distinguish between new and current beneficiaries when setting the effective date — and that the agency should adjust its interpretation.
Smart Senior Daily Staff
Why this matters to you
If the SSA agrees to the change, some retirees could receive additional lump-sum payments covering the full missed year of benefits.
For many seniors living on fixed incomes, that could mean:
- Catching up on property taxes
- Paying medical bills
- Rebuilding depleted savings
But there’s a catch.
Financial experts interviewed by Newsweek warned that larger lump sums could have tax consequences. A big one-time payment may push some retirees into a higher tax bracket or increase how much of their Social Security becomes taxable.
Up to 85% of Social Security benefits can be taxable depending on income thresholds. A lump sum could temporarily raise income enough to trigger that higher taxation level.
In other words, extra money is good — but planning matters.
The funding question
There’s also a broader concern: Social Security’s long-term solvency.
The program’s trust fund is projected to face funding shortfalls in the coming decade unless Congress acts. Expanding retroactive payments could add financial strain — even if the amounts involved are relatively small in the grand scheme.
That doesn’t mean it won’t happen. The push is bipartisan, which increases the odds.
But it does mean nothing is guaranteed yet.
Smart Senior Daily Staff
What seniors should do now
If you were affected by WEP or GPO and received a retroactive payment:
- Review how much you were paid.
- Confirm whether it covered six months or 12 months.
- Watch for official updates from the Social Security Administration.
- Speak with a tax professional before spending a large lump sum.
This is not automatic yet. It’s a policy push — not a finalized change.
Still, for millions of retirees who felt shortchanged for years, it could mean one more correction.
And in retirement, every correction counts.
Source: Reporting by Newsweek, February 13, 2026.
