On January 5, 2025, President Biden signed the Social Security Fairness Act into law, marking a significant change for many current and future public sector retirees. This legislation repeals two provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that previously reduced Social Security benefits for individuals receiving pensions from non-Social Security-covered employment.
Understanding the Social Security Fairness Act
The Social Security Fairness Act eliminates the WEP and GPO, which were initially implemented to prevent “double-dipping” into Social Security benefits and other government pensions. However, these provisions often resulted in reduced benefits for public servants such as teachers, firefighters, and police officers who had pensions from employment not covered by Social Security. The repeal of these provisions aims to ensure that these individuals receive the full Social Security benefits they have earned.
At James Investment, we are thrilled to see this Act come to fruition, as it directly supports our mission of helping retirees achieve financial clarity and security. Knowing that public servants can now fully benefit from their Social Security contributions aligns with our commitment to supporting their retirement planning goals.
How It Works
With the repeal of WEP and GPO, Social Security benefits will no longer be reduced for individuals receiving pensions from non-covered employment. This change is retroactive to January 2024, meaning that affected individuals are entitled to back payments for benefits they should have received since that date. The Social Security Administration (SSA) is currently evaluating the implementation process and will provide updates as they become available.
Impact on Individuals
Approximately 2.65 million Americans, including many public servants, will benefit from this change. For example, retirees who previously experienced reductions in their Social Security benefits due to WEP or GPO can expect an average monthly increase of $360, with some seeing increases of over $1,190 by December 2025. AP News
We understand how significant this increase can be for many future retirees. Our team at is eager to help you incorporate these changes into your financial plan, ensuring you understand the benefits of this new legislation.
Does this affect you?
If you believe you are affected by this change, consider the following steps:
• Verify Your Information: Ensure that the SSA has your current mailing address and direct deposit information. You can update your details through your personal “my Social Security” account online.
• Stay Informed: The SSA will provide ongoing updates regarding the implementation of the Social Security Fairness Act. Regularly check their official page for the latest information.
• Apply for Benefits: If you have not previously filed for Social Security benefits and believe you are now eligible, you can apply online or schedule an appointment with the SSA.
This legislative change represents a significant step toward ensuring that public servants receive the full retirement benefits they have earned through their service. Staying informed and proactive will help you navigate these changes effectively.
