Understanding the Social Security Fairness Act

March 14, 2025

The Social Security Fairness Act, signed into law on January 5, 2025, brings significant changes to Social Security benefits for many people. This new law eliminates two provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), that had previously reduced benefits.

This article, written by our very own Nathan Swab CFP®, AWMA®, highlights how these changes may impact those affected and what steps they should take. It also explores the broader financial implications of this law and how it could influence long-term financial planning.

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On January 5, 2025, the Social Security Fairness Act was signed into law. This bipartisan legislation increases Social Security benefits for some by eliminating the Windfall Elimination Provision, also known as WEP, and the Government Pension Offset, also referred to as GPO.

First, what are the WEP and GPO provisions? The Windfall Elimination Provision reduces Social Security Retirement Benefits for individuals who have worked in both the private sector (where they paid into Social Security) and jobs that did not pay into Social Security but provided a pension, such as those who worked in government jobs in Ohio with pensions like OPERS, STRS, SERS, Fire & Police.

The Government Pension Offset works similarly but affects individuals who worked in jobs that didn’t pay into Social Security but provided a pension, and who are also eligible for spousal or survivor benefits through Social Security. The GPO reduces or even eliminates those spousal or survivor benefits.

The Social Security Fairness Act eliminates both the Windfall Elimination Provision, and the Government Pension Offset, effective January 1, 2024. This means that if your Social Security benefits were previously reduced due to either of these provisions, you are now entitled to your full benefit going back to January 1 of 2024.

So, what should you do if you think the Social Security Fairness Act may apply to you? First, log in to your Social Security account or create one if you haven’t already. Make sure your address and bank account information are up to date. Additionally, if you have never filed for spousal or survivor benefits because of the GPO, you may want to consider doing so now.

If you are already receiving a reduced Social Security benefit, you don’t need to take any action to receive your full benefit. Recalculating the new benefit amounts for everyone affected has been a huge task for the Social Security Administration. They are still working on implementing these changes and have begun paying new benefit amounts on February 25, 2025. The Social Security Administration has stated that anyone affected by the Social Security Fairness Act will receive a notice in the mail explaining their new benefit amount. We will continue to monitor updates from the Social Security Administration and share any new information as it becomes available.

What may be more impactful is how this may adjust your current financial plan. This is a positive surprise for many, and a review of your financial plan makes a lot of sense as it may shift your goals and provide new possibilities you had not been able to explore before. Let us know if we can help you navigate this change and unlock some new opportunities.

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