Thousands of Americans may be missing out on Social Security benefits they’re legally entitled to, due to how the agency is interpreting a major new law that took effect in 2025. The Social Security Administration (SSA) is facing pressure from lawmakers after it applied strict limits to retroactive payments—potentially shortchanging retirees, widows, and public service workers across the country.
The newly enacted Social Security Fairness Act was designed to eliminate two long-criticized provisions: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). These rules had previously reduced or eliminated benefits for millions of public employees. While the law allows retroactive payments dating back to January 2024, many recipients are reportedly receiving only six months’ worth of back pay—far less than what they may be owed.
Lawmakers Urge Social Security to Fix Retroactive Pay Policy
A bipartisan group of senators—including Susan Collins, Bill Cassidy, John Cornyn, and John Fetterman—sent a formal request to Acting Commissioner Leland Dudek, urging the Social Security Administration to revise how it calculates retroactive payments. According to the senators, numerous individuals were misinformed by SSA employees in previous years and, as a result, missed out on applying for spousal or survivor benefits in time.
They argue that the SSA should honor the date of the original consultation—when beneficiaries first sought information—as the starting point for back pay, especially when agency staff gave incorrect or outdated advice. “Spouses, widows, and widowers are now being unfairly penalized for guidance that came directly from the agency,” the lawmakers wrote.
How Much Could Social Security Beneficiaries Be Losing?
If the current six-month limit on retroactive payments remains in place, some recipients could lose out on more than $5,500, based on the average spousal benefit of $931 per month. That figure represents a significant financial setback for people who believed they were following proper procedures.
Although the law aimed to restore full benefits to more than 3 million Americans, the way it’s being applied locally may fall short of that promise. Social Security offices across the country are still enforcing the six-month backpay cap—even in cases where recipients can show they were misled. So far, the SSA has not publicly responded to lawmakers’ concerns.
Table: Social Security Retroactive Pay – What You Need to Know
| Category | Current SSA Practice | What the Law Allows | Potential Loss per Recipient |
|---|---|---|---|
| Retroactive Payment Period | 6 months | Since January 2024 | Up to $5,586 |
| Average Monthly Spousal Benefit | $931 | — | — |
| Estimated Affected Population | — | Over 3 million Americans | — |
| Most Affected Groups | Spouses, widows, public retirees | — | — |