At the beginning of April 2025, the Social Security Fairness Act will implement changes that will significantly alter benefit payments.
This change is meant to benefit approximately 3 million Social Security recipients affected by the Social Security Fairness Act that President Biden signed into law in January.
What is the Social Security Fairness Act?
The Social Security Fairness Act which was signed in effect as of January 2025 repeals two specific provisions ie. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions were meant to eliminate Social Security benefits for many citizens who received pension benefits from jobs that were not covered by Social Security taxes.
The WEP was created as part of the 1983 Social Security system revisions, whereas the GPO had its origins in 1977. Although the provisions in each are similar, the beneficiaries were different.
A individual receiving a non-covered pension had their Social Security benefits lowered by WEP. Teachers may have second occupations that qualify them for Social Security benefits, even if teaching positions in certain states do not contribute to the Social Security system. Their teacher pension under WEP resulted in a reduction in their Social Security payments.
Similar to WEP, GPO had an impact on a person receiving a non-covered pension’s Social Security spousal and survivor benefits.
Who Is Eligible for the Benefit Boost?
The Social Security Fairness Act primarily benefits:
- Retirees who worked in both government and private-sector jobs.
- Public sector employees who receive a government pension- Government workers who get pensions from positions not covered by Social Security, such as teachers, firemen, police officers, and others.
- Surviving spouses affected by GPO reductions- those who had previously been impacted by the GPO, which decreased survivor and spousal payments.
- Anyone whose Social Security benefits were previously reduced due to WEP or GPO.
When can one expect to see these changes?
The SSA has begun implementing changes and these adjustments will be conducted in phases as follows:
Retroactive payments: By the end of March 2025, the majority of beneficiaries will have their one-time retroactive payment paid into the bank account that Social Security has on file
Monthly benefits increase: April 2025 will see the start of adjusted payments.
Ongoing processing: Although majority of the SSA modifications are automated, other situations call for manual adjustments, which might take longer to complete.
How much will the benefits increase?
The individual benefit boost depends on the individual circumstances, a few examples include:
– The average monthly raise for public-sector pensioners who were previously affected by WEP might be $360.
– GPO-affected spouses may be eligible for an extra $700 a month.
– Increases of up to $1,190 per month are possible for surviving spouses.
What should you do?
The SSA is analysing claims and making changes, so you don’t need to do anything right now if you think you or a family member are impacted by the Social Security Fairness Act, you might want to check your Social Security account online to remain updated.
The future ahead
The Social Security Fairness Act implemented the repeal of the WEP and GPO and this marks a significant step forward towards equity for millions of American retirees and their families. By ensuring the provision of full benefits, these changes provide a critical financial relief to those who were initially impacted by the reduction in benefits. For millions of Americans, this increase represents a more than just a financial increase however it shows the efforts of their contributions to the system. Ensuring that you stay informed about changes to the system will assist in you benefiting positively from this change.