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On January 5, 2025, the Social Security Fairness Act (H.R. 82) was signed into law that repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP and GPO are the two provisions of the Social Security Act that operate to reduce or eliminate Social Security benefits for public sector employees that are also entitled to retirement benefits from non-Social Security covered employment. The Act officially repealed the two Social Security provisions that reduced benefits for millions of public sector workers that receive public pension benefits.

The Social Security Fairness Act repeals the WEP and GPO provisions effective for monthly benefits payable for the months after December 2023. The WEP was enacted in 1983 and limited Social Security benefits for those that earn income from noncovered pensions. The GPO was established in 1977 to regulate spousal benefits for workers with noncovered pensions. Both rules were intended to provide beneficiaries with a fair reimbursement for their contributions to the program.

The WEP affects retired or disabled workers and their family members and the GPO affects spouses and survivors. The WEP affects Social Security benefits paid to individuals that earn Social Security benefits from Social Security covered employment, but who also earn pension benefits from state or local government employment not covered by Social Security.  In these cases, Social Security benefits are lowered by the WEP. Under the GPO, an individual’s Social Security spousal or survivor’s benefit is reduced (“offset”) by two-thirds of the pension benefits received from federal, state, or local government employment that is not covered by Social Security.  

The Act directs the Commissioner of Social Security to adjust the benefits payable to impacted beneficiaries, as applicable. The Social Security Administration (SSA) is evaluating how to implement the Act. It is expected to issue guidance regarding the timeframe and process for necessary adjustments to current beneficiaries. The law requires the SSA to adjust benefits for over three million individuals. Since the law’s effective date is retroactive, the past and future benefits will need to be adjusted. The SSA anticipates that it may take over one year to adjust benefits and pay all retroactive benefits.

The Act is available here.

Information released for the Social Security Fairness Act is accessible on the SSA website.