Social Security Fairness Act: What It Means for You

On January 5, 2025, President Biden signed into law the Social Security Fairness Act, a groundbreaking change for many Americans. This law eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), with retroactive benefits starting from January 2024.

These provisions have long affected individuals who worked in jobs not covered by Social Security, such as teachers or certain government employees who did not pay into the Social Security system. For these workers, WEP and GPO significantly reduced or entirely eliminated Social Security benefits, even if they also worked in other jobs long enough to qualify for them.

Here’s what the repeal of these provisions means for you or your loved ones—and the steps you may need to take.

What Were WEP and GPO?

• The Windfall Elimination Provision (WEP) reduced Social Security benefits for individuals who worked less than 30 years in jobs where they paid into Social Security. The reduction was as high as $613 per month, depending on the number of years worked in covered employment. ¹

• The Government Pension Offset (GPO) reduced the spousal and survivor benefits of affected workers by two-thirds of their government pension. In many cases, this offset completely eliminated their Social Security benefit. ²

The intent of these provisions was to prevent “double-dipping” into both pension benefits and full Social Security benefits. However, the rules often felt punitive and caught those affected off guard, since the WEP reduction didn’t occur until after applying for Social Security. Ultimately, the amounts reflected on their Social Security statements over the years turned out to be both inaccurate and overinflated.

What Has Changed?

With the passage of the Social Security Fairness Act, both WEP and GPO have been repealed retroactively to January 2024. This means:

• If you were affected by WEP: Your Social Security benefits will no longer be reduced, and retroactive payments will be made back to January 2024.

• If you were affected by GPO: You may now be eligible for spousal or survivor benefits that were previously reduced or eliminated.

What Actions Should You Take?

For those impacted by WEP:

• No immediate action is required. Simply ensure that the Social Security Administration (SSA) has your correct mailing address and direct deposit information. The SSA is still evaluating how to implement this new law, so the payment adjustments may take several months.

For those impacted by GPO:

• If you never applied for spousal or survivor benefits: Individuals who are married, widowed, or divorced from a person eligible for Social Security benefits may now be eligible for a spousal or survivor benefit. If you never worked in a Social Security-covered job, these benefits might not have been on your radar. If you did have some Social Security earnings, knowing the impact of the GPO reduction might have prevented you from ever applying. If this is the case, you should apply as soon as possible. When filing your application, make sure to note if you were eligible back to January 2024.

• If you applied but were denied: The SSA has stated that it will revisit denied applications automatically and issue retroactive benefits. However, if you don’t see any updates in the coming months, consider following up with the SSA.

What Financial Professionals Are Saying

Jill Ward, CFP®, a Wealth Advisor with HT|TC Wealth Partners who has helped guide many clients through the complexities of Social Security, shared her perspective on the recent change:

“For a long time, my clients impacted by WEP or GPO have felt frustrated by these rules—especially those who are teachers or government employees. Many didn’t realize how significantly it could reduce or even eliminate benefits they thought they’d earned.”

Says Ward, “With this change, I’m encouraging clients to take a closer look at their options, especially those who might now qualify for spousal or survival benefits. The SSA’s implementation will take time, but knowing what’s available and when to act can make all the difference.”

She emphasizes the importance of staying informed: “Clients affected by WEP don’t need to take immediate action other than ensuring the SSA has accurate contact information. However, for those who never applied for spousal or survivor benefits because they assumed they were ineligible, now is the time to act. You may be eligible for significant retroactive payments.”

Ward also advises patience for those awaiting action on denied applications: “If you applied for spousal or survivor benefits but were denied due to the size of your pension, hang tight. The SSA has committed to revisiting those applications and issuing payments. That said, don’t hesitate to follow up if you haven’t heard anything in a few months.”

The Bottom Line

The repeal of WEP and GPO is a big victory for many retirees, offering financial relief and new opportunities to access Social Security benefits. Whether you’re directly affected or know someone who is, this change underscores the importance of staying proactive and informed.

For more personalized advice, consult with your financial advisor to help ensure you’re making the most of this new legislation. If you’d like help applying for benefits or understanding how these changes may affect your financial plan, reach out to us today.

1. Source: Social Security Administration, Publication No. 05-10045, January 2025 ↩︎
2. Source: Social Security Administration, Publication No. 05-10007, January 2025 ↩︎