Understanding the Social Security Fairness Act

On January 5, 2025, the Social Security Fairness Act was signed into law, bringing significant changes for certain types of workers including teachers, firefighters, police officers and other federal employees. This law repeals two long-standing provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—which previously reduced or eliminated the Social Security benefits of over 3.2 million individuals receiving government pensions.

Key Changes Under the Social Security Fairness Act:

1. Elimination of WEP Reductions: Retirees who receive a pension from employment not covered by Social Security will no longer see their benefits reduced by the WEP.

2. Repeal of GPO: Spouses and survivors who receive a government pension will now be eligible to receive their full spousal or survivor benefits without the offset previously imposed by the GPO.

   
   

How This Benefits Retirees:

This reform is expected to benefit approximately 2.5 million retirees, including teachers, firefighters, and police officers. Some individuals may see an increase of approximately $360 per month in Social Security payments. Spouses and survivors receiving benefits could see even greater increases, averaging between $700 and $1,190 per month, depending on their individual circumstances.

Implementation and Next Steps:

The Social Security Administration (SSA) is currently working on implementing these changes. While the law is effective immediately, adjustments and back payments may take several months to process. Starting on February 25th, 2025, SSA has started to pay retroactive benefits and will increase monthly benefits to people whose benefits have been affected. To ensure a smooth transition, retirees should:

• Update their SSA account information, including contact and direct deposit details.

• Check for notifications from SSA or the Teacher Retirement System (TRS) regarding eligibility and benefit adjustments.

• Consider applying for benefits if they previously did not qualify due to WEP or GPO restrictions.

  
  

How to Apply for Benefits:

If you never applied for Social Security benefits due to WEP or for spousal/survivor benefits due to GPO, you may need to submit an application. The date of your application might affect when your benefits begin and your benefit amount. However, each case is different, and all other Social Security laws and policies, such as benefit reductions for claiming benefits before the full retirement age, the retirement earnings test, and others, still apply.

Here’s how to apply:

Retirement or Spouse's Benefits:

• Apply online at www.ssa.gov/apply.

• Please note that the online application will continue to collect pension information until SSA updates it; however, SSA will not offset the benefit.

• If you are applying for spousal benefits, select “Family Benefits” when using the online application to ensure all eligible benefits are considered.

• Call SSA at 1-800-772-1213, Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET. Say “Fairness Act” when prompted to be connected to a WEP-GPO trained representative.

  
  

Surviving Spouse's Benefits:

• The survivor benefit application is not available online. 

• Call SSA at 1-800-772-1213, Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET. Say “Fairness Act” when prompted to be connected to a WEP-GPO trained representative.

  
  

Continue to Stay Informed:

To stay updated on the latest information regarding the Social Security Fairness Act and its implementation, visit the SSA website: https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.

This long-awaited reform provides financial relief to many retirees, ensuring they receive the benefits they have earned over their careers in public service. If you have questions about how these changes affect your retirement planning, feel free to reach out to us for guidance.