As of January 5, 2025, the Social Security Fairness Act became law. It gave millions of retired teachers, police officers, firefighters, and other public workers new hope.
People have been complaining for decades that workers who also get a government pension that isn’t covered by Social Security had their benefits cut or eliminated because of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This law gets rid of these two major problems that made it harder for workers to get their benefits.
But, despite the happy news stories, not all state employees will see their benefits go up. Who gets what, when, and what workers who are touched should do are broken down below.
Why does this matter to them, and what can they expect?
Over 3 million Americans will have to pay more each month because WEP and GPO are ending.
- People who work for the government but don’t pay into Social Security, like teachers, firemen, and police officers.
- The Civil Service Retirement System (CSRS) helps federal workers save for retirement.
- Workers who are covered by social security systems in other countries.
But 72% of public workers already pay into Social Security through payroll taxes, so that won’t change. Under the new law, people who get pensions from work that did not take Social Security taxes into account are the only ones who can get higher payments.
When does the Social Security Fairness Act start to work?
Benefits were changed to reflect the changes by the Social Security Administration (SSA) on February 25, 2025. People who are impacted can look forward to:
- By March 31, 2025, benefits that were due since January 2024 will be paid back.
- Starting in April 2025, there will be new monthly payments with higher amounts. The April payments will cover the March benefits.
Beneficiaries who will be affected will get letters from SSA explaining the changes. Sometimes, people may get two different letters: one when WEP and GPO are taken off their records, and another with the new monthly payment amount.
How much more will people who retire get?
The expected monthly increase is $360, but it will rely on things like the size of the pension and the type of Social Security benefit. For some retirees, the rise could be $1,000 or more per month. For others, it could be less.
SSA is also giving out lump sums to make up for benefits that were cut in 2024, going all the way back to January 2024, when WEP and GPO stopped applying.
What does the beneficiary need to do now?
If you are currently getting less money because of WEP or GPO:
- You don’t need to do anything, but go to ssa.gov/myaccount to make sure that SSA has your correct address and bank information.
- If you never asked for benefits because of WEP or GPO, you should now. You can apply for retirement or spouse’s benefits. Call 1-800-772-1213 and say “Fairness Act” to talk to an agent, or go to ssa.gov/apply.
To get survivor benefits, you have to call and fill out an application.
How will payments made in the past affect taxes?
Yes, lump sum payments made in the past could make 2025 income more taxed. Tax-wise, though, the person who gets the big sum can choose whether to count it as income for the current year or spread it out over previous years. If income was lower in past years, the second choice might lower the total amount of taxes owed.
Also, because Social Security is taxed based on total income, some seniors may end up in a higher tax bracket if their monthly payments go up. As an example:
- People who are single and make more than $34,000 a year may have up to 85% of their benefits taxed.
- People who are married and make more than $44,000 a year may also have to pay taxes on up to 85% of their.
How to Avoid Scams: What to Look Out For
Scammers are unfortunately taking advantage of this. No matter what, the SSA will never call to demand payment or ask for private information in order to process benefits. If someone calls you and seems sketchy, hang up and call 1-800-269-0271 or go to ssa.gov/scams to report it to the Office of Inspector General.
SSA has also set up a webpage just for the Fairness Act and put up-front messages on their national helpline so that people can stay updated without having to wait on hold.
Finally, a win! But not for everyone
The Social Security Fairness Act is a big win for many people who have worked hard for their communities, but it doesn’t help everyone. This law will not change anything for people who have always paid Social Security taxes through their jobs.
But for those who qualified, this law is a big financial lifeline, and for many, it’s long overdue justice.
Keep an eye out for scams and make sure your information is correct if you are qualified. You should also be ready for possible tax consequences.
Important Things to Keep in Mind:
- This will only help government workers whose benefits aren’t covered by Social Security.
- In February and March 2025, benefit raises and payments for past due benefits began to be made.
- The average monthly rise is $360, but some people may see much more.
- People who already get benefits don’t need to do anything, but they should keep their personal information up to date.
- SSA will never ask for money to change your benefits, so be careful of scams.
