The Social Security Fairness Act, signed into law on January 5, 2025, eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This legislation addresses a long-standing issue affecting public sector workers, ensuring they receive full Social Security benefits.
Windfall Elimination Provision (WEP): Introduced in 1983, WEP reduced Social Security benefits for workers who earned pensions from non-Social Security-covered jobs. It disproportionately penalized public sector employees, including teachers and firefighters, many of whom entered public service as a second career.
Government Pension Offset (GPO): Enacted in 1977, GPO reduced spousal and survivor Social Security benefits for individuals receiving public pensions. This provision significantly impacted families relying on survivor benefits.
These provisions unfairly reduced retirement income for millions of public sector workers, including approximately 6.5 million state and local government employees not covered by Social Security. The repeal restores equity, allowing retirees to receive the full benefits they earned through both public service and private-sector work.
- Retirees previously impacted by WEP will see an average monthly benefit increase in social security of $360.
- Spouses and survivors affected by GPO will receive an average increase in social security of $700–$1,190 per month.
- Adjustments are retroactive to benefits accrued from January 2024 onward, and future benefits will include annual cost-of-living adjustments.
The law benefits public sector workers and retirees across various professions, including:
- Teachers and school staff
- Firefighters
- Police officers
- Other state and local government employees previously affected by WEP and GPO
The Social Security Administration is recalculating social security benefits to reflect the repeal. Individuals do not need to take immediate action but should ensure their contact and banking information is up-to-date to receive payments promptly. Retroactive payments for 2024 are expected.
Yes, the repeal will accelerate the insolvency of the Social Security Trust Fund by six months. However, advocates argue the cost is justified to correct inequities in the system and honor commitments to public sector workers.
Retirees should:
- Verify and update their information with the Social Security Administration (SSA) to ensure timely payments.
- Monitor communications from the SSA regarding recalculated benefits and retroactive adjustments.
Visit the Social Security Administration’s website at https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html