Project Advisory: Understanding the Social Security Fairness Act of 2025

Overview

On January 5, 2025, President Joe Biden signed the Social Security Fairness Act into law. This advisory provides key information about the Act and its implications for affected individuals.

Key Provisions

The Act repeals two significant provisions:

1. The Windfall Elimination Provision (WEP)
2. The Government Pension Offset (GPO)

Windfall Elimination Provision (WEP)

The WEP, enacted in 1983, previously reduced Social Security benefits for individuals who also received pensions from jobs not covered by Social Security.

• Affected approximately 2 million Social Security beneficiaries as of December 2023
• Applied to retired or disabled workers and their eligible dependents
• Reduced benefits for those who obtained pension or disability payments from jobs where Social Security payroll taxes were not deducted

Government Pension Offset (GPO)

The GPO, implemented in 1977, affected Social Security spousal or survivor benefits for individuals receiving pensions from government jobs not covered by Social Security.

• Impacted nearly 750,000 beneficiaries as of December 2023
• Reduced spousal or survivor Social Security benefits by two-thirds of the non-covered government pension
• Affected federal, state, and local government employees with non-covered pensions

Who Benefits

The Act impacts nearly 3 million retirees, including:

• Teachers
• Firefighters
• Police officers
• Postal workers
• Other public sector employees receiving pensions from jobs not covered by Social Security
• Spouses and surviving family members of these public sector employees

Financial Impact

• Average monthly Social Security payments are expected to increase for affected individuals
• The law is retroactive to January 2024, meaning eligible recipients will receive a lump sum payment for the past year’s increased benefits

Implementation Timeline

• The law is effective immediately upon signing
• The Social Security Administration (SSA) is currently developing implementation procedures
• Changes may not be immediate due to the implementation process

Actions for Beneficiaries

If you believe you may be affected:

1. Verify that the SSA has your current mailing address and direct deposit information
2. Update information through your personal my Social Security account at www.ssa.gov/myaccount
3. Monitor SSA communications for updates on implementation
4. No action is required to receive increased benefits if previously affected by WEP or GPO

Conclusion

The Social Security Fairness Act of 2025 marks a significant change in retirement benefits for public sector employees. It ensures they receive full Social Security benefits they’ve earned, comparable to private sector retirees. As implementation unfolds, stay informed through official SSA channels and consult with financial advisors for personalized guidance.

About the APILO’s Elder and Disability Rights Project:

APILO’s Elder and Disability Rights Project provides legal services in a variety of areas to assist elders and individuals with disabilities to receive public benefits and live a life free from abuse. The Elder Team works to both to prevent abuse towards elders and people with disabilities and to assist survivors of abuse. We work closely with senior centers, churches, and senior meal sites to keep our services accessible. With a team of exemplary attorneys and dedicated staff, the team provides a wide range of legal services, including naturalization assistance, other immigration cases, elder abuse, estate planning, eviction defense, conservatorship, guardianship, and restraining orders to name a few.

If you want to learn more about what our team does, please feel free to reach out to us.

Sources:

1. https://www.cnbc.com/2025/01/05/biden-signs-social-security-bill-to-increase-benefits-for-millions-of-public-workers.html
2. https://www.collins.senate.gov/newsroom/senators-collins-brown-call-on-social-security-administration-to-begin-prompt-implementation-of-social-security-fairness-act
3. https://www.livenowfox.com/news/social-security-fairness-act-january-payments-biden-sign-bill
4. https://www.ssa.gov/policy/docs/program-explainers/government-pension-offset.html
5. https://www.cbsnews.com/news/social-security-fairness-act-biden/