Government Aid

Social Security Fairness Act: Increased Payments and Back Compensation for Eligible Recipients

Published

1 week ago

January 24, 2025

Kelly

Social Security Fairness Act: Increased Payments and Back Compensation for Eligible Recipients

The Social Security Fairness Act, enacted earlier this month, brings significant changes to benefit payments for both current and former public employees whose Social Security benefits were previously reduced due to “noncovered pensions.” This legislation impacts millions of individuals in public service roles, providing them with higher benefit payments.

Additionally, this payment increase will complement the 2025 Social Security Cost of Living Adjustment (COLA), which includes a 2.5% increase for recipients of Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI). Below is a detailed breakdown of the Act and its implications.

What Is the Social Security Fairness Act?

The Social Security Fairness Act, passed by the House in November and signed by President Joe Biden on January 5, eliminates rules that had limited Social Security payments for public service workers, including teachers, firefighters, postal workers, and police officers. By repealing these provisions, the Act ensures increased payouts for affected individuals.

Key Provisions of the Social Security Fairness Act

The Act specifically repeals two major provisions:

Windfall Elimination Provision (WEP):
- What It Is: Enacted in 1983, the WEP is a formula that adjusts Social Security worker benefits for individuals who receive “noncovered pensions” while also qualifying for Social Security benefits based on other covered earnings. A noncovered pension is one provided by an employer that does not deduct Social Security taxes from salaries.
- Impact of Repeal:
  - The Congressional Budget Office (CBO) estimates that eliminating the WEP will result in an average benefit increase of $360 for 2.1 million Social Security beneficiaries.
  - By December 2033, this average increase is expected to rise to $460 for 1.8 million recipients.
Government Pension Offset (GPO):
- What It Is: Established in 1977 and later adjusted in 1983, the GPO reduces Social Security benefits for spouses, widows, and widowers who also receive government pensions.
- Impact of Repeal:
  - Monthly benefits for spouses will increase by an average of $700, while surviving spouses will see an average increase of $1,190 in December 2025.
  - By December 2033, these figures are projected to rise to $860 for spouses and $1,520 for surviving spouses.

Who Will Be Affected?

Although only about 4% of all Social Security beneficiaries are affected by the WEP and GPO, the changes brought by the Act will have a profound financial impact on these households. Benefits for qualifying individuals will apply to payments after December 2023, with back payments issued as applicable.

Note: The increase in Social Security payments may lead to a reduction in Supplemental Nutrition Assistance Program (SNAP) benefits for those who participate in both programs.

Estimated Payment Increases Due to the Fairness Act

Provision	Beneficiary Type	Payment Increase (2025)	Payment Increase (2033)
Windfall Elimination Provision (WEP)	General Beneficiaries	$360 per month	$460 per month
Government Pension Offset (GPO)	Spouses	$700 per month	$860 per month
Government Pension Offset (GPO)	Surviving Spouses	$1,190 per month	$1,520 per month

What Should You Do if You Qualify?

The Social Security Administration (SSA) is currently working on implementing the Social Security Fairness Act. Here’s what you should do in the meantime:

Ensure that your mailing address and direct deposit information are up to date.
You can update this information online via your My Social Security Account, by calling 1-800-772-1213, or by visiting your local Social Security office.

The Social Security Fairness Act marks a significant milestone in addressing the financial challenges faced by public employees due to outdated provisions like the WEP and GPO.

With increased benefits for millions of individuals, this Act brings much-needed relief to those who dedicated their careers to public service. While the SSA finalizes the implementation process, affected individuals should take proactive steps to ensure their account information is accurate and stay informed through official updates.

FAQs

Who qualifies for the increased benefits under the Social Security Fairness Act?

Individuals previously affected by the WEP or GPO, such as teachers, firefighters, police officers, and postal workers, will benefit from the increased payments.

Will I receive back payments if I qualify?

Yes, back payments will be issued for benefits payable after December 2023.

How much will the payment increases be?

The increases will vary depending on the provision. For example, spouses may see an increase of $700 per month in 2025, while surviving spouses could receive $1,190 more per month.