The Social Security Fairness Act was signed into law on January 5, 2025, and took effect immediately. This new law repeals two long-standing provisions—WEP and GPO—that reduced or eliminated Social Security benefits for certain retirees who also received government pensions.

• Windfall Elimination Provision (WEP) – REPEALED – May have reduced Social Security benefits for people who worked in both Social Security-covered and non-covered jobs and were eligible for a pension from non-covered work.
• Government Pension Offset (GPO) – REPEALED – Reduced or eliminated spousal and survivor benefits for those receiving a government pension from a job that didn’t pay into Social Security.

Now, anyone whose benefit was reduced or eliminated could receive their full Social Security benefit.

Next Steps

For most people, no action is required—the Social Security Administration (SSA) will automatically adjust benefits for those affected.

If you previously had your benefit reduced or eliminated due to WEP or GPO, SSA will:

• Recalculate your benefit, increasing payments going forward.
• Issue a lump sum for past months owed, retroactive to January 2024:
  • Retroactive payments apply only if you previously applied for the benefit in question.
  • People are already seeing these retroactive payments deposited into their accounts.

You may now be eligible if you have not applied for your benefit because of WEP or for a spousal or survivor benefit due to GPO. You can apply online, by phone, or at a local SSA office.

Examples

• Karen, a retired teacher, worked part-time in the private sector and qualified for Social Security. Because of WEP, her monthly Social Security benefit was reduced from $1,800 to $1,300. Now, her full benefit will be restored, giving her an extra $500 per month.
• Mike, a retired firefighter, receives a government pension. His spousal benefit would have been $900 per month but the benefit was reduced to $0 due to GPO when he applied for spousal benefits.  If he never filed for spousal benefits, he could apply now to begin receiving payments.
• Susan, a widow, was entitled to survivor benefits from her late husband’s Social Security. GPO reduced her benefit to zero because of her state pension. Her husband’s monthly Social Security benefit was $2,300, and she could receive that full amount.

The SSA’s official FAQ on the Social Security Fairness Act provides clear, detailed answers to frequently asked questions. Be sure to check it out here:  SSA FAQ on WEP & GPO Repeal

Important Tax Planning Note:

Be sure to factor any increase and retroactive payment into your 2025 income tax planning.

Please note: Information in this article offers only a high-level overview of the factors to consider before taking any action or decision. There may be other factors that are not captured in this article but may still be crucial prior to making a decision. Examples are purely hypothetical and for illustrative purposes only; they should not be taken as an indication that clients will achieve identical results. Clients or prospective clients should not base their decisions solely on this article. It is recommended that clients or prospective clients further research this topic or consult with professionals before making any decisions. DHJJ is neither a law firm, nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. You should not assume that any portion of this article serves as the receipt for, or as a substitute for, personalized investment advice from DHJJ Financial Advisors, LTD.