The Social Security Fairness Act: Will It Affect You?

Takeaways

• President Biden has signed legislation that will boost monthly benefits for nearly 3 million people in 26 states who rely on Social Security.

• The Social Security Fairness Act abolishes two decades-old rules that have reduced or altogether axed benefits for some retirees.

The Social Security Fairness Act addresses long-standing issues with some provisions of the Social Security Act, primarily the Government Pension Offset (GPO) provision and the Windfall Elimination Provision (WEP). These provisions, which were originally intended to prevent double-dipping into Social Security benefits, have been criticized for disproportionately reducing or eliminating benefits for public sector employees, including teachers, police officers, and firefighters, as well as family members, such as their spouses or survivors.

The Social Security Fairness Act

The Social Security Fairness Act was introduced in various forms over the years, often garnering bipartisan support. In recent legislative sessions, the bill gained significant momentum, with numerous co-sponsors in both the House of Representatives and the Senate. Advocacy groups, unions, and retiree organizations have rallied behind the bill, highlighting the financial harm caused by the GPO and WEP.

Despite widespread support, the bill faced challenges due to concerns about the potential cost of repealing these provisions. Critics argue that the loss of revenue to the Social Security trust fund could exacerbate the program's long-term solvency issues.

After being passed by the House and the Senate, the bill was sent to President Biden on December 27, 2024. President Biden signed it into law on January 6, 2025. The Social Security Fairness Act is retroactive to the beginning of 2024. The legislation will affect nearly 3 million people nationwide.

Per its website, the Social Security Administration is evaluating how to implement the Act and will provide more information when it becomes available.

Understanding the Repealed Provisions

Government Pension Offset Provision

The GPO often reduced Social Security benefits for spouses, widows, and widowers who also receive government pensions of their own. For many public sector employees, this provision eliminated spousal or survivor Social Security benefits, creating significant financial challenges for retirees and their families.

Windfall Elimination Provision

The WEP reduced Social Security benefits for individuals who receive a pension from employment not covered by Social Security. Though designed to address perceived unfair advantages for individuals with earnings from both Social Security-covered and noncovered employment, critics argue that the WEP formula often resulted in overly severe reductions, penalizing individuals who worked in public service roles.

Other Repealed Provisions

The Social Security Fairness Act also repeals provisions that reduce Social Security benefits for individuals who receive other benefits, such as a pension from a state or local government.

The Effect on Public Sector Workers

The WEP and GPO affect millions of public sector employees in states where public pensions substitute for Social Security. The financial penalties imposed by these provisions often catch retirees by surprise, leaving them with less retirement income than anticipated.

Goals of the Social Security Fairness Act

By repealing both the WEP and GPO, advocates for the Social Security Fairness Act seek fairness for public sector workers whom they assert should not be penalized for earning pensions through their work while also benefiting from Social Security through other jobs. The Social Security Fairness Act also ensures that retirees receive the full Social Security benefits they earned, providing a more equitable retirement system. Repealing WEP and GPO will also simplify the Social Security benefits system, reducing confusion and administrative burdens.

Learn More About Social Security Benefits

The ins and outs of Social Security benefits can be difficult to understand. An experienced elder law attorney near you can help you navigate the system and ensure you receive the benefits you are entitled to.

For additional reading about Social Security benefits, check out the following articles:

• Are Social Security Benefits Taxed?
• 10 Ways to Maximize Your Social Security Retirement Benefits
• Can I Collect Social Security and Still Work?
• Does Divorce Affect Social Security Spousal Benefits?