The Social Security Fairness Act was signed into law on January 5, 2025, and ends the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits of over 3.2 million people who were receiving a pension based on work that was not covered by Social Security (non-covered pension), because they did not pay Social Security taxes.
Who does it help?
This law increases Social Security benefits for certain types of workers, including some:
- Teachers, firefighters, and police officers in many states
- Federal employees covered by the Civil Service Retirement System
- Individuals whose work had been covered by a foreign social security system
Will every type of worker receive a benefit increase?
Not necessarily. Only those who receive a pension based on work not covered by Social Security may see benefit increases under this new law. About 72 percent of state and local public employees work in Social Security covered employment where they pay Social Security taxes and are not affected by WEP or GPO and will not receive a benefit increase.
When can you expect the benefit increase?
The Social Security Administration (SSA) is currently working to finalize its plan to implement the change in benefits. An estimated time frame for the adjustment to a worker’s past or future benefits is not yet available. As updates are available, they will be posted on the SSA.gov website.
Are the benefit changes retroactive?
WEP and GPO apply through December 2023. This means that the benefit changes are retroactive to January 2024 through the current date.
What action items are required?
If you have never applied for spouses’ or surviving spouses’ benefits, you may need to file an application on the SSA.gov website or call the SSA. The date of your application might affect when your benefits begin and filing sooner might help you get a higher benefit amount.
Lastly, consider reviewing your mailing address and direct deposit information on file with the SSA, which will allow the SSA to adjust your benefits as quickly as possible. The easiest way for most beneficiaries to update their information is through their SSA.gov online account.
For more information, contact Joe Becht, CPA, Senior Manager, Tronconi Segarra & Associates, at jbecht@tsacpa.com or 716.633.1373.
