2025 appears to be a big year with regards to Social Security as we are seeing several changes being made to the system and the way payments are slated to roll out — from the Social Security Fairness Act, to DOGE implications and the matter of overpayment letters. It feels like a lot has been going on so let us take a closer look at what these changes mean for retirees and other recipients.
Social Security Fairness Act
Public sector employees such as firefighters, teachers, police officers, and so on, are set to receive a retroactive benefit check. This extra check will apply to these public sector employees who previously had another job that contributed towards Social Security. The check amount will be dated back to January 2024.
This change is due to the new Social Security Fairness Act which is aimed at eliminating the Windfall Elimination Provision and the Government Pension Offset. At present, around 81% of these checks have already been processed, however, another 1 million people are still in line. As such, eligible individuals who have not yet received their checks should contact Social Security directly starting in May.
The Department of Government Efficiency (DOGE)
Despite having the word ‘efficiency’ in its name, it would appear that DOGE has brought some chaos and confusion with it to the SSA. The biggest cause for concern being the cutbacks and downsizing of the SSA workforce that has resulted in a decline in customer service according to reports.
It is important to note, however, that only Congress has the ability to change an individual’s benefit amount. Despite this, there still appears to be mass confusion related to filing for Social Security due to the new policies that had gone into effect as of April 14.
Key points to take note of regarding the changes:
- If you are already receiving benefits, you do not need to do anything further
- An office visit will not be required if you can file for benefits using the Social Security website under the “my Social Security” tab
However, an office visit will be necessary for those wanting to file a new retirement claim or make changes to their direct deposit information.
Additionally, those applying for Social Security Disability Insurance, Medicare, or Supplemental Security Income can do so over the telephone if they are unable to access the website.
Overpayment letters
If you are a recipient of Social Security benefits, there is a possibility that an overpayment letter will have been sent out to you. This overpayment letter requests that the recipient pay back 50% of the retirement benefits received in excess of $22,320. This repayment will only apply to beneficiaries who are “under your full retirement age and have wages or self-employment income in excess of $22,320 for 2024.”
The importance of this cannot be understated since the excess benefits paid after March 27, 2025 will have to be paid back using the full 100% of the benefit check, rather than just a portion of it. Furthermore, the earnings limitation for 2025 has been increased to $23,400.
Social Security Income Related Monthly Adjustment Amount Letters
Letters regarding Social Security IRMAAA have begun going out. This adjustment is being sent out in relation to the Social Security benefits for Medicare Part B and Part D premiums, meaning that the monthly premiums will be reduced. The adjustment is calculated using “Modified Adjusted Gross Income reported on your personal income tax return (IRS Form 1040) from two years prior, 2023.” As such, the more one earns, the more they will pay.
MAGI of $106,000 is the beginning point for increases for single people, whilst those married filing jointly will begin at $212,000. Around 7% of people will be impacted by this and this yearly calculation is based on your tax returned filed two years prior.