In December 2024, the Social Security Fairness Act was officially signed into law, bringing with it the potential to change social security benefits for millions of Americans. This new legislation eliminates longstanding past provisions frequently criticized as outdated and unfair. It also seeks to bring relief to millions of retirees and their families.
What is the Social Security Fairness Act?
It’s a federal law created to restore full Social Security benefits to public servants affected by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
Originally, these provisions were enacted to stop any one individual from double-dipping into both Social Security funds and public pensions. However, this disproportionately impacted those who had rightfully earned benefits from both, especially over time.
By taking the WEP and the GPO off the table altogether, the Fairness Act eliminates unfair penalties from the benefits calculation process. The result is an overall increase in benefits payments and, in some cases, substantial back pay for affected individuals.
Key Changes Introduced by the Legislation
Here’s a closer look at the primary changes introduced by the Fairness Act and a further breakdown of how they impact associated benefits.
Elimination of the Windfall Elimination Provision (WEP)
First enacted in 1983, the WEP applied to workers (usually within the public sector) who both earned a pension from non-Social Security-covered employment and also qualified for Social Security benefits through additional work.
The WEP effectively adjusted the associated benefits formula downward, which reduced some individuals’ payment checks by hundreds of dollars each month. Those most affected included workers like teachers and police officers who’d either switched careers or were paying into Social Security through side jobs.
By repealing the WEP, the Fairness Act helps ensure people like these now receive the full amount their contributions have entitled them to.
Removal of the Government Pension Offset (GPO)
The GPO effectively reduced Social Security-related benefits for surviving spouses and loved ones who also received work pensions not covered by Social Security. In some cases, this wiped out monthly survivor benefits completely for those entitled to them, placing an unfair strain on people like widows and married retirees.
By repealing the GPO, the Fairness Act brings these benefits back into play for those who need them, formally acknowledging the rights of previously-excluded surviving spouses and dependents.
Who Qualifies for Increased Benefits?
The Fairness Act will be particularly impactful for retired public sector workers and their loved ones. Some key examples include:
- Police officers
- Firefighters
- Postal workers
- Public school teachers
- Federal employees covered by the Civil Service Retirement System (CSRS)
- Other municipal and state employees
- Workers with international work histories who qualify for foreign Social-Security-style pension plans
Surviving dependents of any of the above will likely also see significant increases in public sector benefits, especially if their payments were previously affected by the GPO. This may also be the case for those who simultaneously held public sector jobs and part-time Social Security-covered jobs.
Expected Financial Impact of the Legislation
According to expert estimates, over 2.5 million Americans stand to benefit from the effective repeal of the GPO and WEP. Average payments are expected to increase by $250-400 per month, depending on individual details and work history.
The Social Security Administration has also confirmed that affected individuals can receive retroactive payments. These payments will be made in the form of lump sums and cover losses dating as far back as is applicable according to the statute of limitations.
For long-time retirees, this could add up to thousands of dollars, representing a huge boost when it comes to both thorough retirement financial planning and systemic fairness.
Securing Your Benefits Under the Social Security Fairness Act
If you or a loved one previously experienced a reduction in applicable benefits because of the GPO, WEP, or both, now is the time to act. The Social Security Administration (SSA) has already begun rolling out changes and is actively encouraging eligible recipients to review their benefit status and confirm their contact information.
When do the changes take effect?
The WEP and the GPO were officially repealed on January 1, 2025. However, eligible benefit recipients still need to make sure their paperwork and on-file information are up to date to sidestep possible delays in the receipt of their benefits.
Applications for retroactive payments and other adjustments must be completed by December 31, 2025, to guarantee both timely processing and full receipt of any lump-sum payments due. If you believe you may qualify, follow these steps to confirm:
- Review your earnings history by logging into your My Social Security account
- Confirm whether you were affected by either WEP or GPO in the past
- If you’re unsure about your eligibility or need to start a benefits review, contact the SSA directly for assistance
An Important Correction to Unfair Policies
Ultimately, the Fairness Act is more than just a simple policy update. It effectively corrects decades of undue penalties that impacted the workers society relies on most, acknowledging the contributions of educators, first responders, and other public sector professionals.
If you or someone you love was affected by the WEP or the GPO, be sure to review your Social Security records and pursue any benefits you may have missed out on. Need assistance with your benefits or with financial planning in general? Contact MyStages today for expert guidance tailored to your unique needs.
