The Social Security Fairness Act, signed into law by former President Joe Biden, is set to bring significant changes to the retirement landscape in the United States in 2025. The Act eliminates two key provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which had previously prevented millions of Americans from accessing their full Social Security benefits if they were already receiving a pension or retirement plan from their previous employment. The primary beneficiaries of this reform include teachers, firefighters, police officers, and some federal employees.
According to estimates from the Congressional Budget Office (CBO), ending the Windfall Elimination Provision will increase monthly benefits for an average of two million affected Americans. Additionally, repealing the Government Pension Offset could boost monthly payments for approximately 380,000 surviving spouses of deceased Social Security beneficiaries. However, despite the law being officially passed, beneficiaries shouldn’t expect to see these changes immediately.
The Social Security Administration (SSA) has stated that it might take more than a year to adjust all affected benefits and issue any retroactive payments.
Changes to social security benefits
This delay is attributed to the SSA citing a lack of funds necessary to implement adjustments without compromising daily customer service.
Complicating matters further, a hiring freeze imposed in November 2024 has made it even more challenging to execute the new policy. Senator Jacky Rosen (D-NV) has joined a bipartisan group of Senate colleagues in urging the Trump Administration to swiftly implement the Social Security Fairness Act. In a letter to the Administration, the senators wrote, “The Social Security Fairness Act restores full Social Security benefits for the millions of teachers, police officers, firefighters, and other public servants who are unfairly penalized by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).”
The senators called for the immediate implementation of the legislation to provide prompt relief to the millions of Americans impacted by WEP and GPO.
They noted that the Administration’s website currently states that the SSA expects it could take more than one year to adjust benefits and pay all retroactive benefits owed under the act. As the retirement landscape continues to evolve, staying informed about Social Security changes is crucial for those approaching retirement. The Social Security Fairness Act marks a significant shift toward fairer benefits for public service workers, yet its implementation poses considerable challenges.
Understanding the details of this reform and its impact on retirement planning will help individuals make strategic decisions and adapt to the evolving retirement system.
