Social Security Fairness Act Signed into Law: Repeals Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)

On January 5, 2025, President Joe Biden signed into law the Social Security Fairness Act (P.L. 118-273).  This legislation eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), provisions which previously reduced or completely eliminated the Social Security benefits of over 3.2 million people who received a pension based on work that was not covered by Social Security.  Enactment of this legislation is a stellar example of populist democracy at work: showing how a group of politically engaged and determined citizens, with the help of organizations such as the National Committee, can succeed in getting legislation important to themselves and their families signed into law.  Those who could see their Social Security benefits increased as a result of the enactment of this bill include:

  • Some state and local government employees, including teachers, firefighters and police officers in many states;
  • Some federal employees covered by the Civil Service Retirement System (which applies to certain Federal employees hired prior to January 1, 1987); and
  • Some people whose work had been covered by a foreign social security system.

The amount that monthly benefits may change can vary greatly.  Depending on the type of Social Security benefit involved and the amount of the person’s pension, some people’s benefits will increase very little while others may be eligible for over $1,000 more each month.  Anyone who believes they might be affected by the Social Security Fairness Act should visit the SSA’s website at www.ssa.gov and subscribe to receive alerts whenever the Agency provides updates.  

Those people who previously had their benefits reduced or eliminated by either the GPO or the WEP do not need to do anything right now to have their benefits recalculated, though you are advised to review the mailing address and/or direct deposit information that SSA has on file to make sure SSA can adjust your benefits as quickly as possible.  The easiest way to accomplish this is to create or check an existing my Social Security account at www.ssa.gov/myaccount.

Those people who either never applied for benefits or are not sure if they ever applied may be required to file an application because SSA likely has no information on you.  The most convenient way to apply for retirement or spouses’ benefits is online at www.ssa.gov/apply.  Unfortunately, the survivor benefit application is not currently available online, and will require applicants to call SSA at 1-800-772-1213 Monday through Friday from 8:00 a.m. to 7:00 p.m. to learn other ways to apply.  Callers to SSA’s National 800 number hear a message about the Act which has helped many people avoid waiting on hold for a representative. 

The GPO and WEP were originally enacted to correct what was perceived as an inequity in the Social Security program’s progressive benefit formula.  Over time, however, it became clear to many that the GPO and WEP had an unfair impact on those teachers, firefighters and police officers who had dedicated many working years to public service and, as a result, saw their Social Security benefits significantly reduced or entirely eliminated.  The Social Security Fairness Act was designed to eliminate this unfair treatment.  The Act was effective as of December 31, 2023, so those workers affected by the GPO or WEP would see their benefits increased in future payments, as well as retroactively restored back to January 2024. 

The Social Security Administration (SSA) is working hard on the challenging task of implementing the new law in a timely manner without negatively affecting day-to-day services.  The law requires SSA to adjust benefits for over three million people, both in the past (back to January 2024, which most people received in February 2024) and in the future.  Processing these changes is very complex and SSA believes much of the work will need to be done manually, on an individual case-by-case basis – especially the calculation of the retroactive benefits.  SSA is currently processing pending or new claims involving future benefits first, as the Agency develops a process for computing retroactive benefits.  As a result, while some people are already seeing the increased benefits in their checks, SSA estimates it could take more than one year to adjust benefits and pay all retroactive benefits. 

A significant part of the challenge SSA is facing results from the fact that Congress did not provide a single additional dollar to the Agency for implementation of the Social Security Fairness Act.  SSA was already facing an extremely difficult funding situation even prior to the enactment of this new law.  Despite the increased workload that comes from over 10,000 baby boomers reaching age 65 every day, SSA funding has been kept relatively flat in recent years.  As a result, staffing at SSA has dropped to the lowest levels in 50 years, and the Agency has been operating under a hiring freeze since November 2024.  In addition, the new Administration has made it clear it intends to significantly reduce the overall number of federal employees, and SSA is not exempt from these efforts.  As a result, all SSA customers, including those not affected by the Social Security Fairness Act, will face delays and increased waiting times as SSA incorporates the new law’s requirements into its workload.  

As always, it is important to beware of scammers who might attempt to take advantage of the new law.  SSA is processing information about the new law as quickly as it can, and there is absolutely no advantage to paying someone who may promise to expedite your claim.  SSA will never ask for or require a person to pay for assistance or to have their benefits started, increased, or paid retroactively.  People who receive such calls should hang up and not click on or respond to anyone offering to increase or expedite benefits.  Learn more about Social Security-related scams, and how to report them to SSA’s Office of the Inspector General, at www.ssa.gov/scams. 

Government and Policy, January 27, 2025

Source:  Social Security Administration website dedicated to the Social Security Fairness Act, https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=0%2C1%2C2%2C3%2C4%2C5%2C6%2C7%2C8%2C9%2C10