The Social Security Administration (SSA) is implementing significant changes this year, including introducing the Social Security Fairness Act. This new law aims to increase benefits for public service workers by repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). WEP reduced Social Security benefits for individuals who also received pensions from employers that did not withhold Social Security taxes.
GPO reduced benefits for spouses, widows, and widowers who also received government pensions. With WEP and GPO repealing, affected beneficiaries can expect increases in their Social Security payments. Starting in December 2025, benefits will increase by approximately $700 for spouses and $1,190 for surviving spouses.
These payments are projected to increase to $860 and $1,520, respectively, by December 2033. Retroactive payments under the Fairness Act have already begun. As of March 2025, the SSA had paid more than $7.5 billion in retroactive payments to over one million beneficiaries.
Changes under the Fairness Act
These payments cover lost income due to WEP and GPO from December 2023, meaning beneficiaries will receive over a year’s retroactive payments. Beneficiaries do not need to apply for retroactive payments.
The SSA will automatically process and issue these payments to eligible individuals. However, beneficiaries should ensure their current mailing address and direct deposit information are up to date. The repeal most affects members of the Civil Service Retirement System, such as teachers, firefighters, police officers, and other civil servants.
The additional income from increased benefits will provide significant assistance to these retirees, who often rely on Social Security as a primary source of income. While the increased payments benefit many, some lawmakers are concerned about the implications for the retirement fund’s longevity. The fund is expected to be depleted by the early 2030s, and the new retroactive payments will likely accelerate this timeline.
Despite these concerns, the new Social Security Fairness Act provides much-needed financial relief to many public service workers, ensuring they receive fair compensation for their years of service.
Image Credits: Photo by Chris Benson on Unsplash
