Social Security Fairness Act Update: How the WEP and GPO Changes Affect Your Benefits

The Social Security Fairness Act became law on January 5, 2025, when President Biden signed the bipartisan bill. The law eliminates two provisions that reduced Social Security benefits for about 2.8 million Americans: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

For those affected, this is the biggest change to their Social Security benefits in decades. Some will see increases of $100, $300, or even $700 or more per month.

Here is what happened, who benefits, how much more you could receive, and when the payments arrive.

What WEP and GPO Were

These two provisions reduced Social Security benefits for people who worked in jobs that did not pay into Social Security, mainly public sector workers.

The Windfall Elimination Provision (WEP) reduced your own Social Security retirement or disability benefit if you also received a pension from work that was not covered by Social Security. It affected people who split their careers between covered jobs (private sector) and non-covered jobs (many state and local government positions, some federal jobs, and some foreign employers).

WEP could reduce your Social Security benefit by as much as $587 per month in 2024.

The Government Pension Offset (GPO) reduced Social Security spousal or survivor benefits. If you received a government pension from non-covered work, GPO reduced your spousal or survivor benefit by two-thirds of your pension amount. In many cases, this wiped out the spousal or survivor benefit entirely.

For example, if your government pension was $1,800 per month, GPO reduced your Social Security spousal benefit by $1,200 (two-thirds of $1,800). If your spousal benefit was $1,000, the offset eliminated it completely.

Who Is Affected

The people who benefit from this law fall into specific groups:

Retired teachers in 15 states where teachers do not pay into Social Security (including California, Texas, Ohio, Illinois, Massachusetts, and others)
Police officers and firefighters in states and cities with their own pension systems
Other state and local government workers who participated in public pension plans instead of Social Security
Some federal employees hired before 1984 who were under the old Civil Service Retirement System (CSRS)
Spouses and survivors of any of the above, whose spousal or survivor benefits were reduced or eliminated by GPO

The Social Security Administration estimates that about 2.1 million people were affected by WEP and about 745,000 by GPO. Some were affected by both.

How Much More You Could Receive

The increase depends on your individual situation. The SSA is recalculating benefits for everyone affected, using the formula as if WEP and GPO never existed.

Here are general ranges:

For WEP-affected retirees:

The average monthly increase is expected to be about $360
Some will see increases of $100 to $200 per month
Others could see increases of $500 or more, depending on how many years of non-covered work they had

For GPO-affected spouses and survivors:

Many will receive a spousal or survivor benefit for the first time
Average increases could range from $700 to $1,200 per month for those whose benefits were fully eliminated
Some widows and widowers will receive a full survivor benefit that was previously reduced to zero

The exact amount depends on your work history, earnings record, pension amount, and when you retired.

When Payments Arrive

The Social Security Administration has been working through the recalculations. Here is the timeline:

Retroactive payments. The law is effective retroactive to January 2024. This means affected beneficiaries are owed back payments dating back to January 2024. The SSA has been issuing lump-sum retroactive payments and expects to complete most of them by mid-2026.
Ongoing increased benefits. Monthly benefit amounts have been adjusted going forward. Most affected beneficiaries should already be seeing their higher monthly payments.
New applicants. If you were previously discouraged from applying for Social Security spousal or survivor benefits because of GPO, you should apply now. Benefits that were eliminated by GPO may now be fully payable.

If you have not yet seen an increase in your monthly benefit and believe you are affected, contact the SSA at 1-800-772-1213 or visit your local Social Security office.

The Retroactive Lump Sum Payment

Because the law is retroactive to January 2024, the SSA owes affected beneficiaries back pay for the months between January 2024 and whenever their benefits were adjusted.

For someone whose benefit increased by $360 per month, the retroactive payment for 12 months would be about $4,320. For someone affected by GPO who gains a $900 monthly benefit, the retroactive payment could be $10,800 or more.

The SSA is processing these payments in batches. If you have not received yours yet, the SSA says to wait before calling. They expect to finish most retroactive payments by mid-2026. If you still have not received a payment by July 2026, call the SSA.

Tax Effects of the Changes

The increased benefits and retroactive payments may affect your taxes.

Monthly benefit increases: If your total income (including the higher Social Security benefit) pushes you above certain thresholds, more of your Social Security may become taxable. Up to 85% of Social Security benefits can be taxed. The thresholds are:

Single filers: If combined income exceeds $25,000, up to 50% may be taxable. Above $34,000, up to 85%.
Married filing jointly: If combined income exceeds $32,000, up to 50% may be taxable. Above $44,000, up to 85%.

Combined income means your adjusted gross income, plus nontaxable interest, plus half of your Social Security benefits.

Retroactive lump sum: A large lump-sum payment received in 2025 or 2026 for prior years could push you into a higher tax bracket for that year. However, IRS rules allow you to use the “lump-sum election” method. This lets you recalculate your taxes as if you had received the income in the years it was actually owed, which can lower your total tax bill.

Talk to a tax advisor about the best way to handle the retroactive payment on your return.

Effects on Other Benefits

The higher Social Security income could affect other benefits that are based on your income:

Medicare premiums. Higher income may trigger Income-Related Monthly Adjustment Amounts (IRMAA) for Medicare Parts B and D. IRMAA applies when modified adjusted gross income exceeds $106,000 for single filers or $212,000 for married couples. Most retirees affected by WEP/GPO will not hit these thresholds from the increase alone, but it is worth checking.
Medicaid. If you receive Medicaid, a significant income increase could affect your eligibility. Contact your state Medicaid office to understand how the change applies.
Supplemental Security Income (SSI). SSI has strict income limits. An increase in Social Security benefits could reduce or eliminate SSI payments.
SNAP (food stamps) and other means-tested programs. Higher income may affect eligibility. Report the change to the relevant agencies.

What You Should Do Now

If you are already receiving Social Security and were affected by WEP or GPO:

Check your my Social Security account at ssa.gov for your updated benefit amount
Look for a notice from SSA explaining the change
Watch for the retroactive lump-sum payment
Talk to a tax advisor about how the changes affect your 2025 and 2026 returns

If you never applied for Social Security spousal or survivor benefits because GPO would have eliminated them:

Apply now. You may be entitled to benefits you were previously denied.
You can apply online at ssa.gov, by phone at 1-800-772-1213, or in person at your local office.
Bring documentation of your government pension and your spouse’s (or late spouse’s) Social Security record.

If you are still working in a non-covered job:

When you retire and apply for Social Security, WEP and GPO will no longer reduce your benefits.
Your Social Security benefit will be calculated the same way as anyone else’s.

The Social Security Fairness Act corrects a penalty that has reduced benefits for public servants for over 40 years. If you are one of the millions affected, make sure you receive every dollar you are owed.

Reported by Margaret Chen with additional research from the SeniorDaily editorial team. For corrections or updates, please contact us.

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