Mar 30, 2025
Follow us on Google for more Moneywise news
Add us on GoogleIf a $6,000 deposit recently landed in your bank account out of nowhere, you’re not alone.
While the Trump administration has stirred worries about potential cuts to Social Security, at least 3.2 million Americans are set to receive an increase in their benefits thanks to a rule finalized during the Biden years.
Advertisement
On January 5th, President Biden signed the Social Security Fairness Act, which repealed two statutes that reduced benefit payments to many public sector workers, including teachers and firefighters.
Thanks for subscribing!
The money news that actually matters.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
As of March 4th, more than 1.1 million Americans have already received retroactive payments, according to the Social Security Administration (SSA). So far, the average payment is $6,710.
However, not everyone on Social Security can expect such a huge bump in benefits, and the lack of awareness about this new rule has left some room for potential scams. Here’s what you need to know.
Eligibility and potential scams
Although many former government employees are set to benefit from this new rule, not everyone in the public sector is covered. The SSA clarified that “only people who receive a pension based on work not covered by Social Security may see benefit increases.”
According to the SSA, 72% of the state and local public sector workforce is ineligible because their payments were not covered by the two statutes that were repealed — the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
To check your eligibility and see if you have a retroactive payment due, you could reach out to the SSA directly on its national 1-800 number. You can likely expect a long wait time as the agency has cut roughly 7,000 jobs and reportedly has plans to cut thousands more.
You could also reach out to your accountant or financial advisor to learn more about how this new rule impacts you. However, do not seek assistance from anyone who calls and claims to be from the SSA. The agency has warned about “bad actors” who could take advantage of the rule change.
“SSA will never ask or require a person to pay either for assistance or to have their benefits started, increased, or paid retroactively,” says the SSA website. “Hang up and do not click or respond to anyone offering to increase or expedite benefits.”
Advertisement
Even if you’re ineligible for this payout or not yet retired, monitoring changes to this program is crucial for your financial planning and security.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Monitoring changes with Social Security
The national welfare system is facing significant challenges in the years ahead. According to a recent report by the SSA Board of Trustees, the trust fund from which benefits are paid is expected to be depleted by 2035.
Meanwhile, in an interview with Bloomberg News, Social Security Commissioner Leland Dudek threatened to cease operations if Elon Musk’s Department of Government Efficiency (DOGE) wasn’t given access to sensitive data at the agency. The commissioner walked back his threat after a federal judge offered clarifications on a recent ruling.
Put simply, these are interesting times for the SSA. Taxpayers who expect some benefits in the future should set up a my Social Security account to track their personal information, monitor reputable sites such as AARP or The National Institute on Retirement Security for the latest updates, and speak to a financial advisor to plan for any changes to the system in the years ahead.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
