Social Security Fairness Act Repeals WEP and GPO
Written by: Jared Martin and Dustin Roberts
On January 5, 2025, a notable legislative milestone was achieved when President Joe Biden signed the HR 82: Social Security Fairness Act into law. The Fairness Act repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) rules, resulting in possible increased benefits for certain public sector retirement plan participants associated with state or local governments.
Does the new law impact me?
The WEP and GPO provisions can impact current and former employees of state and local governments that provide a defined benefit or defined contribution Social Security replacement plan in lieu of covering employees under Social Security. The Fairness Act impacts participants in those plans who:
a) receive or are eligible to receive Social Security retirement benefits due to work history for employer(s) that did withhold Social Security taxes, and/or
b) receive or are eligible to receive spousal or survivor Social Security benefits.
Individuals that have never applied for retirement due to WEP or for spousal or survivor benefits because of GPO may wish to file an application or research how the change impacts them.
How might the new law affect Social Security payments?
The elimination of the WEP and GPO could increase future monthly payments where applicable. The amount can vary by person. In 2024, the maximum WEP reduction to monthly Social Security benefits was equal to 50% of the recipient’s benefit or $587, whichever was less. The maximum GPO reduction to spousal or survivor monthly benefit was the lesser of two-thirds of the recipient’s monthly government pension benefit or 100% of the Spousal or Survivor benefit. The Social Security Administration (SSA) provides fact sheets for both the WEP and GPO via their website as well as an online pension calculator at www.ssa.gov/prepare/plan-retirement.
When does the new law begin?
While President Biden signed the Fairness Act into law on January 5, 2025, the rule change is retroactively effective as of January 1, 2024. Therefore, beneficiaries are expected to receive lump sum payments for any reduced Social Security benefits from the start of 2024 through the date that benefits were adjusted.
The Social Security Administration (SSA) began to pay retroactive benefits as of February 25, 2025, and will increase monthly benefit payments to those beneficiaries affected by the WEP and GPO. Retroactive benefits are expected as a one-time payment to the bank account the SSA has on file. As Social Security benefits are paid one month behind, most affected beneficiaries will begin receiving the new monthly amount in April 2025 for their March 2025 benefit. Individuals receiving retroactive payments or a monthly benefit adjustment will receive a mailed notice from the SSA.
What action is required?
Most current Social Security beneficiaries do not need to take any action except to verify that the SSA has their current mailing address and direct deposit bank account information. This can usually be done online with one’s personal my Social Security account without calling or visiting Social Security. Visit www.ssa.gov/myaccount to sign in or create your account.
Individuals who have never applied for retirement due to WEP or for spousal or survivor benefits because of GPO may wish to file an application. According to the SSA, the most convenient way to apply for retirement or spousal benefits is online, although applying by phone is also an option for first-time applicants. The surviving spouse’s benefit application is unavailable online and must be made over the phone.
The enactment of the Social Security Fairness Act represents a substantial enhancement of retirement income for many Americans. As public sector employees navigate the changes brought about by this legislation, they must stay informed and proactive in managing their retirement benefits.