The Social Security Fairness Act was signed into law on January 5, 2025, marking a significant change for millions of Americans. The Act eliminates two longstanding provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—which previously reduced or eliminated Social Security benefits for individuals receiving pensions from jobs not covered by Social Security. This includes certain teachers, firefighters, police officers, federal employees under the Civil Service Retirement System, and individuals covered by foreign social security systems. Below, we break down the key details of the Act, its implementation, and what beneficiaries need to know.
Who benefits from the act?
The Act primarily benefits individuals who receive a non-covered pension, meaning their work did not require them to pay Social Security taxes. However, not all public employees will see an increase in benefits. Approximately 72% of state and local public employees work in jobs covered by Social Security, meaning they already pay Social Security taxes and are unaffected by WEP or GPO. Only those with non-covered pensions will see changes to their benefits.
When will benefit increases take effect?
The Social Security Administration (SSA) began implementing the Act on February 25, 2025. Here’s what beneficiaries can expect:
- Retroactive Payments: Beneficiaries due retroactive payments will receive a one-time lump sum by the end of March 2025. This payment covers increased benefits dating back to January 2024, when WEP and GPO were officially repealed.
- Monthly Benefit Adjustments: Most beneficiaries will see their new monthly benefit amounts reflected in their April 2025 payments (for March 2025 benefits). Social Security benefits are paid one month in advance, so adjustments will appear in the following month’s payment.
- Notices from SSA: Beneficiaries will receive mailed notices explaining their benefit changes or retroactive payments. Some may receive two notices—one confirming the removal of WEP or GPO and another detailing their new monthly benefit amount.
How much will benefits increase?
The increase in monthly benefits varies widely depending on factors such as the type of Social Security benefit received and the amount of the individual’s pension. Some beneficiaries may see minimal increases, while others could receive over $1,000 more per month.
What should beneficiaries do now?
If you are affected by WEP or GPO, here’s what you need to know:
- No Action Needed if Information is Current: If SSA already has your correct mailing address and direct deposit information, no further action is required. You will automatically receive any retroactive payments and adjusted benefits.
- Verify Your Information: If you’re unsure whether SSA has your correct information, log in to your my Social Security account at www.ssa.gov/myaccount or call 1-800-772-1213 to confirm.
- Apply for Benefits if Necessary: If you never applied for retirement, spouse’s, or surviving spouse’s benefits due to WEP or GPO, you may need to apply. The date of your application could affect when your benefits begin and the amount you receive.
- Retirement or Spouse’s Benefits: Apply online at www.ssa.gov/apply or call 1-800-772-1213 and mention “Fairness Act” to speak with a trained representative.
- Surviving Spouse’s Benefits: These applications are not available online. Call 1-800-772-1213 and mention “Fairness Act” to apply.
Medicare premiums and the Act
If you pay your Medicare premiums directly to the Centers for Medicare & Medicaid Services (CMS), continue doing so until you receive a notice from SSA. Once your Social Security benefits are adjusted, your Medicare premiums will be deducted from your monthly payments. If you prepaid your premiums, you will receive a refund after SSA updates your records.
Avoiding scams
Unfortunately, scammers may try to exploit the changes brought by the Act. Remember, SSA will never ask for payment to process your benefits or retroactive payments. If you receive suspicious calls or messages, hang up and report them to SSA’s Office of the Inspector General at www.ssa.gov/scams.
SSA’s implementation efforts
SSA is working diligently to implement the Act, but the process is complex. The agency must adjust benefits for over 3 million people, including retroactive payments dating back to January 2024. While automation is speeding up the process, some cases require manual review and may take up to a year to resolve.
SSA has also taken steps to keep the public informed, including:
- Creating a dedicated Social Security Fairness Act webpage with updates and FAQs.
- Adding informational messages to its National 800 Number to reduce call wait times.
- Hosting meetings with state retirement boards, labor unions, and other stakeholders.
Challenges ahead
The retroactive nature of the Act presents significant challenges. SSA must process both past and future benefit adjustments, which requires extensive manual work for complex cases. While most beneficiaries will see changes quickly, some may experience delays due to the volume of cases and the need for individualized review.
