Social Security Fairness Act

On January 5, 2025, President Biden signed into law the Social Security Fairness Act (H.R. 82 of the 118th Congress). The legislation passed Congress with bipartisan support. It affects millions of Americans who receive (or will receive) public sector pension benefits. 

The Act repeals both the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP reduces Social Security benefits paid to individuals who receive a pension from an employer who is not required to withhold Social Security tax, but who otherwise qualify for Social Security as a result of other employment. Since its passage in 1983, the WEP has reduced Social Security payments to more than 40 million Americans, with many receiving benefit reductions of up to 50 percent. 

Similarly, the GPO adjusts Social Security benefits for spouses or window(er)s who receive pensions paid by an employer that does not withhold Social Security taxes. According to the Social Security Administration, in 2022 the GPO applied to approximately 12.6 percent of the nearly 6 million spousal or window(er) beneficiaries with the average monthly benefit before the offset being $1,058 and just $249 after the offset. 

The passage of the Social Security Fairness Act means retirees, members, and their surviving spouses will no longer have their Social Security benefits unfairly offset. During the signing of the bill, President Biden remarked, “this victory is the culmination of a forty-year fight to provide security for workers who dedicated their lives to their communities.” 

The Social Security Administration is in the process of implementing the Act, which will be retroactive to January 2024. For more information, visit:

https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.