Social Security Fairness Act Increases Benefits for Millions
The Social Security Fairness Act, signed into law on January 5, 2025, provides relief to millions of retirees by eliminating provisions that reduced benefits under the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions had previously affected certain public employees like teachers, firefighters, and police officers, preventing them from receiving their full Social Security benefits due to pensions from jobs not covered by Social Security taxes. With this change, about 3.2 million people are expected to see increases in their monthly benefits and receive retroactive payments back to January 2024.
Individuals impacted by WEP and GPO will now see higher monthly payouts starting in April 2025, with many experiencing average increases of around $360 a month. The Social Security Administration has already begun distributing significant retroactive payments, with over $7.5 billion having been paid out by March 2025. This new legislation aims to provide financial relief to those who have been underpaid for decades and guarantees that they can receive their fully entitled benefits moving forward.