Major Changes to Social Security: The Fairness Act and What It Means for You
The Social Security Fairness Act (H.R. 82) was officially signed into law on January 5, 2025, bringing significant changes to how Social Security benefits are calculated for millions of retirees. This new law eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), two provisions that have long reduced Social Security benefits for public employees who also receive pensions from non-covered employment, such as teachers, first responders, and other government workers.
What Has Changed?
The Social Security Fairness Act repeals two federal provisions that have impacted public employees for decades:
Windfall Elimination Provision (WEP): Previously, this rule reduced Social Security benefits for those who earned a pension from jobs that didn’t withhold Social Security taxes but who also worked in Social Security-covered jobs.
Government Pension Offset (GPO): This provision affected spousal or survivor benefits, reducing or eliminating them for individuals receiving a government pension from non-Social Security-covered employment.
With these provisions gone, Social Security benefits will now be calculated more fairly for public sector workers and their families.
Who Is Impacted?
This change is expected to benefit over 2.5 million Americans, with the average increase estimated at $360 per month. Those who may see a boost in benefits include:
Retirees receiving pensions from non-Social Security-covered employment who also qualify for Social Security through other jobs.
Spouses and survivors who were previously subject to benefit reductions under the GPO.
Individuals who did not apply for Social Security benefits before due to prior eligibility restrictions.
What Should You Do Next?
With these changes in effect, it’s important to take a few key steps:
Review Your Social Security Benefits – Log in to your Social Security account to check your updated benefit estimate and confirm your historical earnings record.
Apply for Benefits (If Eligible) – If you previously did not qualify for Social Security but now may be eligible, consider submitting an application.
Monitor the SSA Website for Updates – The Social Security Administration (SSA) is still determining how to implement the law. They have set up a dedicated webpage where you can track updates.
Stay Informed & Plan Ahead – If you’re impacted, consult with a financial advisor to understand how these changes fit into your overall retirement strategy.
Final Thoughts
The repeal of WEP and GPO marks a major victory for public servants who have long been penalized under outdated rules. With implementation still in progress, the best thing you can do is stay informed and make sure you take the necessary steps to maximize your benefits.
If you’d like to discuss how this impacts your financial plan, feel free to reach out to your advisor directly. And as always, keep an eye on the Social Security website for the latest updates.
