March 10, 2025
For decades, many individuals who worked for cities, states, or the federal government faced reduced Social Security benefits due to long-standing rules that limited payments for those receiving a public pension. That has now changed.
The Social Security Fairness Act eliminated two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules had reduced or eliminated Social Security benefits for millions of public sector retirees. Some individuals will see an increase in their monthly Social Security payments, while others may receive a one-time retroactive payment covering benefits dating back to January 2024.
Even if this does not apply to you directly, it may affect a friend, family member, or former colleague. We monitor changes like this to help ensure our clients and their loved ones are well-informed about opportunities that could improve their financial security.
The repeal of WEP and GPO affects individuals who receive a pension from employment not covered by Social Security, including:
Not all public sector workers will see a change. According to the Social Security Administration, approximately 72 percent of state and local public employees work in positions that already pay into Social Security and were never affected by WEP or GPO. These individuals will not see an increase in benefits due to this law.
For those affected, the repeal of WEP and GPO may result in higher monthly Social Security benefits. However, the exact impact will vary based on factors such as the amount of the non-covered pension and the type of Social Security benefit received. Some individuals may see a significant increase, while others will experience a minimal change.
Additionally, eligible beneficiaries will receive a one-time retroactive payment covering the increase in benefits back to January 2024, the first month WEP and GPO were no longer applied.
Starting February 25, 2025, the Social Security Administration will begin issuing retroactive payments to eligible beneficiaries. Monthly benefit payments will also increase for individuals whose benefits were previously reduced by WEP or GPO. These payments will be processed in phases, so some beneficiaries may receive their adjustments and lump sums later than others.
The Social Security Administration is automatically adjusting benefits and issuing retroactive payments, so no immediate action is necessary for most beneficiaries. However, there are a few key points to keep in mind:
To ensure a smooth process, individuals should:
While Social Security is just one piece of the financial picture, staying informed about changes like these can significantly impact long-term financial security. Whether this affects you directly or someone close to you, understanding the implications of the Social Security Fairness Act is crucial.
For more information, visit the Social Security Administration’s official page on the Fairness Act: ssa.gov/benefits/retirement/social-security-fairness-act.html.
If you have questions about how this change fits into your broader financial strategy, we are here to help. Have you or someone you know been affected by these Social Security provisions? Let us know.
