Imagine dedicating your life to public service, contributing to Social Security with every paycheck, only to find your benefits cut in retirement because of an obscure rule. This has been the reality for millions of Americans, but it will soon be a thing of the past. The Social Security Fairness Act, signed into law by Joe Biden in January 2025, promises to right this wrong by providing new payments to those who have long been penalised. But while this landmark legislation brings hope to many, millions more could find themselves excluded from its benefits.
The end of WEP and GPO
For decades, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) have quietly reduced Social Security benefits for certain retirees. The WEP, enacted in 1983, was designed to prevent the reduction of benefits for workers who earned pensions from jobs not covered by Social Security, such as teachers or firefighters in some states. Similarly, the GPO, introduced in 1977, reduced spousal benefits for those receiving state pensions for those receiving benefits from jobs not covered by Social Security.
While intended to ensure fairness, these rules often left state and federal employees, especially those in the Civil Service Retirement System, with unexpected financial burdens in retirement. The Social Security Fairness Act is a way to honour the service of our public servants by putting an end to the WEP and GPO deductions.
Why the Social Security Fairness Act was passed
The Act, which was passed in January 2024 and takes effect on the first day of 2025, provides a one-time retroactive payment to retirees who were previously affected by WEP and GPO. Pensioners will now receive their monthly social security benefits without deductions.
What are retroactive payments?
The law includes one-time retroactive payments for benefits denied up to December 2023. By the end of March 2025, the Social Security Administration (SSA) hopes to have paid more than $7.5 billion to more than 1 million beneficiaries, an average of $6,710 per person.
The process of repaying and disbursing retroactive payments to retirees has already begun, but millions could miss out.
Who will benefit
More than 3.2 million Americans previously affected by the WEP and GPO provisions, including teachers, firefighters, police officers and federal retirees, will benefit. The average monthly benefit increase is $360, although some could see increases of more than $1,000, depending on their earnings history and pension size.
Why millions could be left out
While the Social Security Fairness Act is a big win for many, it has limitations, especially for people who receive a pension from a job or work that is not covered by Social Security. This group, made up mainly of private sector workers who have only paid into Social Security, will see no change in their Social Security benefits.
The Social Security Fairness Act targets a specific group of retirees, and this selective focus has sparked controversy, celebration and debate.
The financial challenge ahead
The Social Security Fairness Act isn’t a perfect bill without controversy. The Congressional Budget Office projects that it will add $195 billion to the federal deficit over the next decade, straining the Social Security trust fund. Experts warn that without further action, the fund could run dry by 2033, triggering automatic benefit cuts for all recipients. This will be a huge loss for millions of beneficiaries.
What the government should do
The government should increase the amount raised through payroll taxes or lift the cap on taxable earnings. For now, the benefits of the bill come with a looming question: Can Social Security sustain this victory?
What you need to know
Anyone eligible for increased benefits or a retroactive payment should act quickly. Visit the SAA website to confirm your status.
The Social Security Fairness Act is a historic victory, righting a wrong for millions. But while it lifts some, it leaves others waiting, either for their share of fairness or for broader reforms to secure the promise of Social Security. This is more than a policy shift; it’s a reminder that progress is often accompanied by unfinished business.