The Social Security Fairness Act passed on January 5, 2025, aims to fix unfair cuts in Social Security benefits for certain retirees and public workers. It removes the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) to boost benefits for those affected.
Elimination of WEP and GPO
The most significant change from the Social Security Fairness Act is ending WEP and GPO. These rules affected over 3.2 million people, like teachers, firefighters, police officers, federal employees under the Civil Service Retirement System, and others with foreign social security systems. By removing these rules, the Act ensures fair treatment and better benefits for those who faced cuts because of their pension setups.
Who benefits from this legislation?
Not all public workers will get a benefit increase. The Act mainly helps those with pensions from jobs not covered by Social Security. This means people who did not pay Social Security taxes while working but got a pension might see higher benefits. Still, about 72 percent of state and local public employees already work in jobs covered by Social Security and are not affected by WEP or GPO.
Retroactive payments
Starting February 25, 2025, the Social Security Administration (SSA) began making retroactive payments and adjusting monthly benefits for those affected. These payments cover benefit increases going back to January 2024, when WEP and GPO stopped applying. Beneficiaries will receive a one-time retroactive payment, and new monthly benefit amounts are being processed. Plans are to finish all adjustments by early November 2025.
The increase in a person’s benefits can vary based on their situation, such as the type of Social Security benefit they get and their pension amount. Some people might see a minor increase, while others could receive over $1,000 more each month.
The Social Security Fairness Act is a major step in fixing unfair benefit cuts for some retirees and public workers. By removing the Windfall Elimination Provision and Government Pension Offset, the Act aims to offer fairer benefits to millions of Americans. Though the process is complex and ongoing, the SSA is dedicated to ensuring that affected individuals get the benefits they are entitled to.
