Changes To Social Security Payments Began March 2025

Beginning in March 2025, millions of Americans may have noticed significant updates to their Social Security benefits:

The Social Security Fairness Act, effective retroactively from January 2024, eliminates the previous reduction of Social Security benefits for individuals receiving public pensions, such as teachers, firefighters, and police officers. Under the new law, Social Security benefits will now be calculated using the same formula for all recipients, regardless of non-covered pensions.

Affected retirees can expect retroactive payments in a single lump sum payment (retroactive from January 2024), and the new adjusted monthly benefit amount beginning with their April 2025 Social Security payment.

Also beginning in March 2025, the Social Security Administration (SSA) reinstated its authority to withhold up to 100% of an individual’s monthly benefit to recover overpayments. In recent years, the SSA limited overpayment recovery to a maximum of 10% of the monthly benefit. While the 10% withholding will continue for existing overpayment recovery plans, the 100% withholding policy will apply to any new overpayments moving forward.