The Social Security Fairness Act (SSFA), signed into law by former USA President Joe Biden in January 2025, marks a critical change in the administration of Social Security benefits, especially for workers in the public sector. This act repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which had previously eaten into the benefits individuals receive from non-Social Security-covered employment.
The repeal is retroactive to January 1, 2024, and it affects over 3.2 million retirees, including teachers, police officers, firefighters, and other public workers.
What are The WEP and GPO Provisions?
The WEP was implemented to adjust Social Security benefits for beneficiaries who receive a pension from employment not covered by Social Security taxes. WEP was intended to prevent individuals from receiving disproportionately high benefits. These disproportionately impacted spouses, widows, and widowers, causing financial constraints.
What Impact Will the SSFA Have?
With the repeal of WEP and GPO, affected beneficiaries should expect increases in their Social Security benefits. The Social Security Administration has already started issuing retroactive payments in February 2025, and most recipients have already received these payments. More individuals are set to receive these payments from the SSA starting in April 2025.
According to SSA, over 7.5$ billion in retroactive payments had been disbursed to more than 1.1 million beneficiaries as of early March 2025, with each getting an average of $6,710.
How Much Will Social Security Payments Increase?
According to the Congressional Budget Office (CBO), Social Security benefits would increase as follows;
- 360$ per month for retirees affected by WEP.
- $700 per month for the spouse affected by GPO.
- $1,190 per month for surviving spouses affected by GPO.
Actions for Affected Individuals
Individuals who had been affected by the previous WEP and GPO provisions should do the following to ensure they are eligible to receive the benefits they are entitled to;
- Review their benefits by accessing their Social Security Administration statement through the SSA’s online portal to understand how the SSFA affects their benefits.
- Look for an SSA notice in mail that explains how much you will receive in retroactive benefits and your new monthly payments.
- Contact the SSA for personalized information regarding their benefit adjustments via 800-772-1213.
- Consult a financial advisor to enable you to understand the broader implications of these changes on your retirement planning.
- Regularly check the SSA’s official communication to stay informed on how SSA is implementing the SSFA.
What to Expect in the Future
The WEP and GPO provisions unfairly reduced Social Security benefits for millions of retirees, and now, following their repeal, public servants and their families are set to receive the money they rightfully earned. With an average increase of $360, with others eligible to receive up to $1,000 per month, this change is a win for retirees because it provides the financial relief that they much needed. These retrospective payments will come in handy, considering the current rising cost of healthcare and daily living expenses.
While the SSFA presents a significant relief for many beneficiaries, there are broader implications that we should recognize. The expansion of benefits means additional strain on the Social Security Trust Funds, which are projected to be at risk of insolvency by 2035. This issue means that there is a need for ongoing discussions and reforms that would ensure that these programs run efficiently in the long term.
Conclusion
The Social Security Fairness Act is a win for retired teachers, firefighters, police officers, and other public sector servants. Eliminating the WEP and GPO provisions means that millions will receive larger Social Security checks, including retroactive payments back from 2024.
If you are eligible for these checks, check your SSA account, update your information, and stay informed regarding SSA updates. According to the historic law, every eligible government and public sector employee is entitled to receive their full Social Security benefits.