The Social Security Fairness Act, signed into law on January 5, 2025, is a significant victory for public servants, including teachers, police officers, and firefighters. This law eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—two rules that previously reduced or eliminated Social Security benefits for retirees with public pensions.
While this change benefits millions, not everyone will see an increase. Here’s what you need to know about who qualifies, when payments start, and what steps you should take.
Table of Contents
Increase
The removal of WEP and GPO will increase Social Security payments for over three million retirees, particularly:
- Public employees in states where they did not pay into Social Security.
- Federal workers under the Civil Service Retirement System (CSRS).
- Individuals receiving foreign Social Security pensions impacted by WEP or GPO.
However, 72 percent of public employees already pay Social Security taxes and will not see any change in their benefits. This law only benefits those whose pensions were not covered by Social Security payroll taxes.
Benefits
The Social Security Administration (SSA) began adjusting payments on February 25, 2025.
| Date | What Happens |
|---|---|
| March 31, 2025 | Retroactive payments issued for benefits owed since January 2024. |
| April 2025 | First monthly checks reflecting increased benefits. |
| Ongoing | SSA will send mailed notices with updated payment details. |
Some recipients may receive two separate notices: one confirming the removal of WEP/GPO, and another with their new benefit amount.
amounts
The average monthly increase is estimated at $360, but actual amounts will vary based on:
- The size of the government pension.
- The type of Social Security benefits received.
- How long WEP and GPO affected payments.
Some retirees will see increases of over $1,000 per month, while others may receive a smaller boost.
Additionally, the SSA is issuing retroactive payments for those affected as far back as January 2024. These lump sums could be significant, depending on how long WEP and GPO impacted benefits.
What Should You Do?
- No action is required, but ensure your address and banking details are up to date at ssa.gov/myaccount to avoid delays.
If You Never Applied
- Apply now for Social Security retirement or spousal benefits:
- Online at ssa.gov/apply.
- Call 1-800-772-1213 and say “Fairness Act” to speak with an SSA representative.
For Survivor Benefits
- Applications must be completed by phone—they cannot be submitted online.
Retroactive Payments
Yes, lump sum back payments could increase taxable income for 2025. However, retirees have options:
- Count the lump sum as part of current-year income.
- Spread the lump sum over past years, reducing overall tax liability.
Since Social Security is taxable based on combined income, higher benefits may push some retirees into a higher tax bracket.
| Filing Status | Income Threshold for Social Security Taxation | Percentage of Benefits Taxed |
|---|---|---|
| Single | Over $34,000 | Up to 85 percent of benefits taxed |
| Married (Jointly) | Over $44,000 | Up to 85 percent of benefits taxed |
Consider speaking with a tax professional to determine the best approach for handling retroactive payments.
Beware of Scams
Scammers are already taking advantage of this new law by posing as SSA representatives.
Warning Signs
- SSA will not call or email asking for payment to process benefits.
- No one needs to “unlock” increased payments—changes happen automatically.
- If someone demands personal information over the phone, hang up immediately.
Report scams to the Office of Inspector General at 1-800-269-0271 or ssa.gov/scams.
A Long-Awaited Victory
The Social Security Fairness Act is a long-overdue correction to policies that unfairly reduced benefits for public workers. However, if you have always paid Social Security taxes through payroll deductions, this law does not affect you.
For those who qualify, the repeal of WEP and GPO means higher monthly payments and retroactive compensation.
Key Takeaways
- Only public workers with pensions not covered by Social Security will benefit.
- Benefit increases and retroactive payments began in February and March 2025.
- Average monthly increase: $360, but some retirees may see much more.
- No action required for those already receiving benefits, but ensure SSA has your updated information.
- Watch out for scams—SSA never asks for payment to adjust benefits.
If eligible, stay informed, keep your records updated, and plan for any tax implications.
FAQs
Who benefits from the Social Security Fairness Act?
Public workers with pensions not covered by Social Security, such as teachers, police officers, and firefighters.
When will increased benefits be paid?
Retroactive payments started in March 2025, and higher monthly benefits begin in April 2025.
How much more will I receive?
The average increase is $360 per month, but some retirees may get over $1,000 more.
Do I need to take any action?
No action is required for those already receiving benefits, but new applicants should apply immediately.
Will lump sum payments affect my taxes?
Yes, but recipients can choose to spread the income over past years to lower tax liability.
