Social Security benefits are increasing for many Americans. Find out if you’re eligible for increased payments and how to claim your benefits.
Social Security benefits are set to undergo significant changes in 2025, thanks to the Social Security Fairness Act signed by President Biden on January 5, 2025.
This legislation aims to restore full Social Security benefits to nearly 3 million Americans, primarily public sector employees who have been affected by two controversial provisions: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).
The new law represents a major shift in how Social Security benefits are calculated for certain groups, potentially increasing monthly payments for teachers, law enforcement officers, firefighters, and other public servants.
FAQs
Q1: Who will benefit from the Social Security Fairness Act?
A1: The Act primarily benefits public sector employees, including teachers, law enforcement officers, and firefighters, who were previously affected by the GPO and WEP provisions.
Q2: How much will Social Security benefits increase?
A2: The increase varies, but on average, affected spouses may see a $700 increase, surviving spouses a $1,190 increase, and individuals impacted by the WEP a $360 increase in monthly benefits.
Q3: When will the increased Social Security benefits take effect?
A3: The higher benefits will start in January 2025, with retroactive payments available for those who received benefits in 2024. If you’re already receiving benefits, you don’t need to take action. However, it’s important to ensure the Social Security Administration has your current mailing address and direct deposit information.
Introduction To The Social Security Fairness Act
Under the Social Security Fairness Act signed by President Biden on January 5, 2025, almost 3 million Americans will receive a boost to their Social Security benefits.1
This bill, which had bipartisan support, restores full Social Security benefits to some public-sector employees, including:
- teachers,
- law enforcement officers,
- firefighters,
- and others who have been affected by two provisions of current federal law — the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP)
Estimated Benefit Increases
Although the increased benefit amount for individuals will vary, the Congressional Budget Office (CBO) has estimated that eliminating the Government Pension Offset will increase monthly benefits for:
- 380,000 impacted spouses by $700 on average, and
- 390,000 impacted surviving spouses by $1,190 on average
Eliminating the Windfall Elimination Provision will increase monthly benefits for approximately 2.1 million impacted individuals by $360 on average.2
Implementation Timeline And Retroactive Payments
Those affected will be entitled to higher benefits starting in January 2025.
Individuals who received benefits in 2024 will also be entitled to back payments equal to the difference between what they received in 2024 and what they would have received without a Government Pension Offset or Windfall Elimination Provision reduction.
Concerns About Trust Fund Impact
While advocates of the bill are cheering, opponents of the bill are concerned that repealing the Government Pension Offset and the Windfall Elimination Provision will worsen the outlook for the combined Social Security trust funds.
According to a CBO cost estimate, the depletion date for the combined Old-Age, Survivors, and Disability Insurance (OASDI) trust funds could be pushed forward about six months, potentially leading to a substantial reduction in Social Security benefits for all beneficiaries even sooner than expected, unless Congress acts to address the impending trust fund shortfall.3
Next Steps For Affected Beneficiaries
If you’re among those affected, be aware that implementing benefit changes may take some time, according to a message from the Social Security Administration:
“At this time, the Social Security Administration is evaluating the law and how to implement it. We will provide more information on our website as soon as it is available. If you are already entitled, you do not need to take any action at this time except to verify that we have your current mailing address and direct deposit information. If you are receiving a public pension and are now interested in filing for benefits, you may file online at ssa.gov or schedule an appointment.”4
The SSA notes that you can verify your current mailing address and direct deposit information online without calling or visiting a Social Security office by signing in to a personal my Social Security account or creating one on the SSA website
Original Intent Of GPO And WEP
Both the Government Pension Offset and the Windfall Elimination Provision were originally intended to equalize benefits for those who receive Social Security benefits based on a job where they contributed to Social Security through payroll taxes (covered employment) and a pension from a job where Social Security payroll taxes were not withheld (noncovered employment).
For decades, advocates for reform have been trying to change or repeal these provisions, arguing that they are unfair and cause financial hardship
Government Pension Offset (GPO)
Enacted in 1977, the GPO has affected spouses and surviving spouses who receive pensions from a federal, state, or local government or non-U.S. employer based on noncovered employment and who also qualify for Social Security benefits based on their spouses’ work histories in covered employment.
The GPO reduces Social Security spousal or widow(er) benefits by two-thirds of the amount of the pension.
The reduction was intended to help ensure that the spousal and widow(er) benefits of those with covered or noncovered lifetime earnings would be about equal.
Windfall Elimination Provision (WEP)
Enacted in 1983, the WEP has affected individuals who receive Social Security retirement or disability benefits based on their own covered employment (if fewer than 30 years) and a pension from noncovered employment.
The Social Security benefit formula is progressive, meaning it replaces a greater share of career-average earnings for lower-paid workers than for higher-paid workers.
The WEP was passed so that workers receiving pensions from noncovered employment would not receive higher benefits because the Social Security benefit formula did not count their noncovered earnings, making it appear as if they were lower-paid workers.
A modified formula was implemented to figure benefits for those affected by the WEP, resulting in lower monthly Social Security benefits; the reduction was limited to half of the amount of the pension.
The Social Security Fairness Act of 2025 marks a significant shift in Social Security benefits for millions of Americans, particularly those in public sector jobs. While the increased benefits will provide financial relief to many retirees and their families, it’s crucial to stay informed about the implementation process and potential long-term impacts on the Social Security system.
As the Social Security Administration works to implement these changes, beneficiaries should ensure their contact information is up to date and monitor official communications for further guidance. This new chapter in Social Security benefits underscores the importance of ongoing evaluation and adjustment of our social safety net programs to meet the evolving needs of American workers and retirees.
Contact your tax and financial advisors to determine the best moves for your situation.
1–3) Congressional Budget Office, September 2024
4) Social Security Administration, December 2024