I’m 69 and Social Security Just Sent Me a Five-Figure Check Out Of the Blue

Many people are used to working, paying taxes on their income, and collecting Social Security in retirement. But it used to be that for some people, it wasn’t a given that they would get their monthly benefits in full or at all.

For years, people who were eligible for certain government benefits had some of their Social Security withheld due to two provisions — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The logic was to not allow workers in this boat to double dip on retirement benefits.

But recently, Social Security’s rules changed with regard to the WEP and GPO. And now, a few million people should find themselves on the receiving end of extra money.

In this Reddit post, we have someone who says they received a five-figure check from Social Security out of the blue. The poster says that they hadn’t gotten any Social Security before since they retired with a separate pension.

Now, they’re wondering what the money is for. Chances are, it’s a makeup payment for Social Security benefits that were previously withheld.

The Social Security Fairness Act brought about big changes

Earlier this year, the Social Security Fairness Act was signed into law, and it repealed the WEP and the GPO. As a result, a few million older Americans are entitled to retroactive payments from Social Security for the benefits they previously had withheld.

Based on the poster’s circumstances, it’s likely that the large check they’re looking at is one of those retroactive payments. They can think of it as Social Security’s way of saying, “Sorry, here’s your money back.”

That said, Social Security may not be done making retroactive payments under the new rules. It’s possible that some seniors who are entitled to that backpay haven’t gotten it yet.

Just as importantly, thanks to the Social Security Fairness Act, people whose Social Security benefits may have previously been whittled down to $0 could now start getting monthly checks. That’s something to keep an eye out for as well.

It’s important to understand why you’re being paid

It’s always nice to get a large check in the mail. But it’s a good thing that the poster took the time to inquire about their unexpected Social Security payment.

Social Security has been known to make overpayments in the past. And the problem with those is that Social Security can then go after recipients and claw back the money.

If you end up receiving money from Social Security that you weren’t expecting, and with no letter or explanation attached, it’s best to contact the agency to find out what it’s for. You don’t want to end up in a situation where Social Security paid you money it shouldn’t have, and now you’re on the hook for paying it back.

However, based on what the poster is writing, it doesn’t seem like they have to worry about that. It seems as though that large payment is money the poster was entitled to under the Social Security Fairness Act.

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