Fraud BlockerSocial Security Fairness Act

Social Security Fairness Act

Mar 24, 2025

What do a schoolteacher from Texas, a firefighter from Indiana, and a city administrator from Massachusetts have in common? They could all be eligible for a one-time retroactive payment and a monthly Social Security retirement benefits increase.

Who is impacted?

Congress recently signed the Social Security Fairness Act into law, abolishing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated benefits for people who qualified for Social Security, but also received a pension from work not covered by Social Security (a "non-covered pension").

If you worked in a job that did not pay into the Social Security system and received a "non-covered pension," the law change may impact you. 3.2 million people who receive a pension based on work not covered by Social Security have already been identified - employees such as civil servants, firefighters, police officers, employees of non-U.S. employers, and teachers in many states.

Many workers are due a one-time retroactive benefit to January 2024, when the provisions were repealed. Many will also receive adjusted higher monthly retirement benefits.

Most workers, including state and local public employees, work in Social Security-covered jobs where they pay Social Security taxes (in other words, they are not subject to the WEP or GPO) and, therefore, are not due the additional Social Security benefits made available by the Fairness Act.

How long will I wait?

The Social Security Administration has been working quickly to implement the law's mechanics. As mentioned above, they have identified 3.2 million workers who they know were subject to the WEP and GPO provisions and have begun recalculating their retirement benefits. A third of the people identified have already been paid a one-time retroactive payment and/or received adjusted monthly benefits. The impacted retirees who have already been paid will also receive a detailed explanation letter in the mail.

Some cases will require extra processing time, such as those that must be calculated and processed manually. An example of a case that will require individual review is an ex-husband filing a new claim for spousal benefits on his former wife's work record where she was a police officer in a state that did not pay Social Security taxes and worked in private security for ten years.

The adjusted amount of the monthly benefit can vary greatly. Factors that can impact the adjusted monthly benefit amount are the type of Social Security benefit (your own benefit, a spousal benefit, a disability benefit, etc.) and when the benefit was claimed. Some may see a very small increase, while others may receive an adjustment of over $1,000 monthly. A portion of all social security benefits are taxed, the retroactive and increased benefits are no exception.

Do I need to take action?

While the Social Security Administration has identified the majority of workers impacted, you should follow up if you previously did not apply for your Social Security retirement benefit because of the WEP or a spousal, ex-spousal, or survivor benefit because of the GPO.

In these cases, you are encouraged to file an application or get in touch with the Social Security Administration for an evaluation of your situation - benefits specialists are available at 1-800-772-1213 (say "Fairness Act" when prompted) who can assess your situation and file an application over the phone.

Suppose you are already collecting benefits and are impacted by the WEP or GPO. In that case, no action is required if the address and direct deposit information the Social Security Administration has for you is correct. If you do not receive payment or an explanation letter by the end of April, you should follow up using the toll-free number or log into your My Social Security profile at www.ssa.gov.

BEWARE of scammers!

Unfortunately, when there are modifications to Social Security, the tax code, or Medicare, scammers will find a way to try to take advantage of any confusion surrounding the updates. Be wary of emails with links asking you to click to receive "retirement benefits you are entitled to" or phone calls from people offering, for a fee, to "collect your retroactive payments." Never click on links in emails if you do not know the sender and never share your personal information over the phone. The best source of information will be the Social Security website, www.ssa.gov.

Summary

The elimination of the WEP and GPO provisions will help many retirees collect higher benefits. While most retirees are already receiving their updated benefits, you should contact the Social Security Administration if you previously did not file for your retirement benefits due to the eliminated provisions.

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The material has been gathered from sources believed to be reliable, however Bedel Financial Consulting, Inc. cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through Bedel Financial Consulting, Inc. Advisory services are only offered where Bedel Financial Consulting, Inc. and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place.

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