Biden Signs Social Security Fairness Act, Expanding Benefits for Millions

Former President Joe Biden signed the Social Security Fairness Act into law on Jan. 5, 2025. Originally introduced in 2023, this legislation repeals two provisions that reduced or eliminated benefit payments for approximately 3.2 million public-sector employees. As a result, retirees, spouses, and survivors will gain additional income from Social Security soon.

Read on to learn more about the Social Security Fairness Act.

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Understanding the Social Security Fairness Act

The Social Security Fairness Act eliminates two key rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions aimed to prevent beneficiaries with public pensions from receiving full Social Security benefits in cases where they did not pay Social Security taxes on their total income.

Specifically, the WEP reduced or eliminated benefits for retired workers who had public-sector jobs not covered by Social Security taxes while also holding jobs that were covered. The GPO similarly impacted spousal and survivor benefits for those in non-covered public-sector roles.

These provisions affected various government employees, including police officers, teachers, and firefighters at different government levels. Earlier this year, the Congressional Research Service provided estimates for those impacted:

• The average affected retired worker will receive an additional $360 in monthly benefits.
• The average affected spouse will receive an additional $700 in monthly benefits.
• The average affected widow(er) will receive an additional $1,190 in monthly benefits.

Crucially, although the Social Security Fairness Act was signed into law recently, it will apply retroactively to benefit payments beginning in January 2024. Beneficiaries will receive larger payments moving forward, along with retroactive payments.

The exact increase in monthly Social Security benefits will depend on individual factors such as lifetime income and public pension amounts. Affected recipients will receive a mailer detailing their changes and retroactive payments.

Timeline for Adjusted Social Security Payments

On Feb. 25, the Social Security Administration announced its plan for implementing the Social Security Fairness Act.

Retroactive payments dating back to January 2024 will be issued as a lump sum. Most affected individuals will find a one-time payment deposited into their accounts by the end of March, often arriving before the notice explaining the payments.

Furthermore, millions of Americans will see a permanent increase in their monthly Social Security benefits. While the specific amount will vary according to benefit type and individual circumstances, updated benefits are set to take effect in April. Thus, all beneficiaries impacted by the WEP and GPO should expect updated payments within the next two months.

The Social Security Administration (SSA) has advised, “We urge beneficiaries to wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March. Beneficiaries should also wait until after receiving their April payment before contacting SSA regarding their monthly benefit amounts.”

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