What is the Social Security Fairness Act?

By Presidio Wealth Partners on February 6, 2025

Social Security Fairness Act

The Social Security Fairness Act eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) which reduced or eliminated the Social Security benefits for those who also received income from a pension. Both the WEP and GPO cut benefits for non-covered pensions, a pension paid by an employer, (typically, state and local governments or non-U.S. employers), that doesn’t withhold Social Security taxes from an employee’s salary. Essentially, the WEP and GPO prevented workers from “double-dipping” and receiving both pension benefits and full Social Security benefits

Who Does this Impact?

This law affects nearly three million public service workers in occupations such as law enforcement, public education, nursing, postal services, and other government employees who receive a pension from an employer that does not withhold Social Security taxes. This will also have an impact on the spouses and surviving spouses of these workers as previously, the GPO reduced spousal or survivor benefits when an individual’s pension was non-covered.

How Does this Affect My Income?

Public service workers who were affected by the WEP can expect their monthly benefits to increase by an average of $360 by December 2025, as estimated by the Congressional Budget Office. Some spouses who were affected by GPO are expected to receive a monthly increase of $700 while surviving spouses will receive an average monthly benefit of $1,190.[1] The payments will be made retroactive to January 2024 and the benefits will increase over time to align with the Social Security Administration’s cost-of-living adjustments.

What are the Next Steps for Me?

As of January 6, 2025, the Social Security Administration is evaluating how to implement the Act and is not requiring any action from those who previously filed for Social Security and have had benefits partially or completely offset.[1] However, the agency recommends those who qualify for these benefits under the new Act to verify if their mailing address and direct deposit information are up to date. You can do so online by accessing your personal Social Security account or visiting a Social Security office.

If you don’t receive an adjusted payment or believe the payment amount is incorrect, you can contact the Social Security Administration online, by phone, or in person.

[1] Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update | SSA. (n.d.). Retrieved January 8, 2025, from https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html

[1] Kim, J. (2025, January 6). Millions of public workers are set to get higher Social Security benefits. Here’s why. NPR. https://www.npr.org/2025/01/06/nx-s1-5249689/social-security-fairness-act-biden-signed