The Social Security Fairness Act
Posted on May 20, 2025On January 5th, 2025 President Biden signed the Social Security Fairness Act into law. This Act ends the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions impacted approximately 3.2 million Americans who received a pension not covered by Social Security. The WEP adjusted Social Security benefits lower for individuals that worked in both Social Security covered and non-covered employment that would otherwise receive full Social Security benefits. The GPO reduced Social Security spousal or survivor benefits by up to two-thirds of the recipient’s pension, significantly reducing the benefits of surviving spouses.
WEP and GPO impacted teachers, firefighters, police officers, federal employees covered by the Civil Service Retirement System, and people whose work was covered by a foreign social security system.
Individuals affected by WEP and GPO could potentially receive higher Social Security Benefits resulting in an increase of $1,000 or more per month! Others may only see a modest increase. According to the SSFA December 2023 is the last month that the WEP and GPO will apply, and benefits will be adjusted in arrears dating back to January 2024 as well as future benefits. The SSA is in the process of creating a plan to implement the SSFA and is uncertain on the timing of implementation as some adjustments will require manual adjusting.
If you think you might fall into one of the affected categories, it would be wise to investigate your benefits to see if you qualify for an increase. If you did not apply for benefits because of disqualifications due to GPO, SSA is guiding you to reapply for your benefits!
If you have questions regarding the Social Security Fairness Act or its financial planning implications, please contact Culbreth Wealth Management for more information.
Culbreth Wealth Management
Office: (770) 979-1301
e-mail: info@culbrethwm.com