Bad news for retirees – $5,500 glitch in Social Security payments detected and here’s what to do if you’re affected

June 16, 2025
Bad news for retirees - $5,500 glitch in Social Security payments detected and here's what to do if you're affected

The long-awaited retirement of many US citizens has been cut short by a Social Security (SSA) error. The beneficiaries of Government Pension Compensation (GOP) benefits have seen their case has been victim of a failure in administration, which has resulted in financial problems for those affected. A multitude of erroneous payments in which the final amount has not been entered, have made the Social Security Administration (SSA) one of the biggest scandals in recent years, is the only one responsible for this problem and has left millions of citizens with minimal incomes.

Government Pension Compensation (GOP)

This is a provision of the law of the United States through which benefits earned in retirement or survival of Social Security are reduced. Those who had a government job or receive spousal benefits, and were not deducted from Social Security, would be charged this amount retroactively. However, subsequently, the Social Security Fairness Act was introduced with the intention of eliminating it and, with it, retroactive collection.

The $5,500 mistake

Following this change in social security legislation, the problems seemed to have been solved. All beneficiaries are expected to collect their benefits in full retroactively from January 2024. However, the reality is that many citizens are only getting 6 months out of the 12 agreed. This is creating a financial problem for the beneficiaries, as spousal beneficiaries who are eligible for up to $931 per month, could expect a shortfall of approximately $5,500 per person.

Responsibility for this incident lies entirely with the social security. There appeared to be problems with consultation by beneficiaries, who were misdirected, causing the dates of retroactive refunds to vary. In addition, the Social Security offices have been facing a significant staff reduction, which has made it even more difficult for the administration to deal with this effectively.

Who is affected?

There are thousands of citizens affected by this situation and those who are economically affected. Most of them are those who had already been harmed by the GPO. The list includes:

  • Eligible individuals for spousal and survivor benefits under the Social Security Fairness Act. Given the lack of information to the citizen and the absence of guidance from employees of the Social Security, citizens who could have been benefited by these aids, so the retroactive amount is higher.
  • Citizens who worked for the government and did not have social security were also disadvantaged by the GPO, so they are in the same situation as the previous group.
  • Those families whose only income is the benefits they receive or part of the Social Security.

The politics take action

After numerous complaints from voters who could not claim benefits to the spouses at the time, they led the Senators to step forward. It is now when they are putting pressure on the administration of the Social Security, demanding that these cases be reviewed. They request that the law be clear, that it be effectively implemented and that beneficiaries receive their full income. To this end, they have requested additional funding to address the situation and more staff are being recruited.

The solution is coming

Although the Social Security Equity Act was a big step forward for citizens, its implementation has been a disaster. Although there is a close relationship between the formulated laws and Social Security, it is recommended that if you consider your case has been mishandled, contact the Social Security offices and keep yourself informed. The aim of the Social Security Administration is to provide support and guidance to beneficiaries by facilitating all their procedures, but it seems that they will have to work hard on this aspect to improve it.

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