Good news is on the way for thousands of retirees and public workers in Connecticut. Starting next month, many Social Security beneficiaries in the state will see an increase in their monthly payments. This boost comes after a major change in law, aiming to correct the way payments were calculated for certain public service employees.
About 708,000 people in Connecticut, which is around 20% of the state’s population, receive Social Security benefits, according to data from the U.S. Social Security Administration. The new change will benefit a significant portion of them, especially those who worked in public service roles like teachers, police officers, firefighters, and other government employees.
Why Are the Payments Increasing?
The increase is due to the repeal of two old rules:
- Windfall Elimination Provision (WEP)
- Government Pension Offset (GPO)
These two rules had reduced, or in some cases even eliminated, Social Security payments for certain workers. Specifically, these were people who also received pensions from jobs where they didn’t pay Social Security taxes.
Congress passed the Social Security Fairness Act, a bipartisan bill, in the final days of the last session. It was signed into law by former President Joe Biden in early January 2025. With WEP and GPO removed, Social Security benefits will now increase for over 3 million people nationwide, including those in Connecticut. Some beneficiaries will also receive back payments, covering the period since January 2024.
Who Will Get the Extra Money?
Public service employees who were affected by WEP and GPO will be the ones seeing a rise in their benefits. However, nearly three-quarters of Connecticut’s public employees already worked in jobs where Social Security taxes were paid, so they won’t notice much change.
Still, more than 26,000 people in Connecticut will receive a lump sum payment to cover the missed benefits. On average, this one-time payment will be around $7,500 per person, totaling roughly $196 million across the state. The payments should land directly in beneficiaries’ bank accounts by the end of March 2025.
Starting in April 2025, the monthly Social Security checks will also reflect higher amounts. Some retirees might see only a small increase, but others could get up to $1,000 more every month. According to the SSA, they have already processed nearly 75% of the necessary adjustments.
Understanding the WEP and GPO Rules
Let’s break down what these two provisions did:
- Windfall Elimination Provision (WEP):
WEP reduced Social Security payments for people who also got pensions from jobs where Social Security taxes were not paid. This applied mainly to those with less than 30 years of substantial earnings. For 2024, “substantial earnings” means making at least $31,275 per year. In Connecticut, over 22,000 people were affected by WEP, most of them retired workers, including many teachers. - Government Pension Offset (GPO):
GPO reduced spousal or survivor Social Security benefits by two-thirds of a person’s pension from uncovered public service jobs. For example, if someone was a teacher with a government pension, their Social Security spousal benefits could be cut so much that they ended up receiving nothing.
These cuts impacted many people who had spent their careers in public service. Teachers, police officers, firefighters, and government workers felt the pinch, as well as widows or widowers relying on survivor benefits.
Strong Support and Some Criticism
Many people fought for years to remove WEP and GPO. Labor unions like the Connecticut Education Association, the American Federation of Teachers’ Connecticut chapter, and the Association of Retired Teachers of Connecticut worked hard to push Congress to pass the bill.
Both Republican and Democrat lawmakers supported the repeal. Even former President Donald Trump backed the bill before returning to office.
However, not everyone was happy. Some critics, including Connecticut’s own U.S. Rep. John Larson, were concerned because there is no clear plan to offset the cost of repealing these rules. Larson had his own Social Security reform bill, which included raising the income cap on taxable earnings to cover the costs.
The Congressional Budget Office (CBO) estimated that removing WEP and GPO would cost almost $196 billion over the next 10 years. There’s also worry that it could speed up when the Social Security Trust Fund runs out of money.
Right now, experts believe the Trust Fund can pay full benefits through 2033. After that, there might be a 20% cut in payments if no further reforms are made.
What’s Next for Social Security?
Along with the payment increases, some other changes are happening in Social Security that beneficiaries should be aware of:
New Verification Rules:
Starting March 31, 2025, people receiving Social Security benefits must verify their identity either in person or online. Verification over the phone will no longer be allowed. The SSA says this move is to prevent fraud, but critics worry it may make things harder for seniors and disabled individuals who find phone verification easier.
SSA Workforce Cuts:
The Social Security Administration plans to cut 12% of its workforce and may reduce more staff through a “reduction in force.” They’re also consolidating their 10 regional offices down to 4.
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