Social Security Fairness Act – Will All Public Workers See a Benefit Increase Under the New Law?

The Social Security Fairness Act, signed into law on January 5, 2025, brings long-awaited relief to millions of retired public servants, including teachers, police officers, and firefighters. This legislation eliminates two major rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—which had previously reduced or eliminated Social Security benefits for those receiving government pensions not covered by Social Security.

While this law is a significant win, not every public worker will see an increase in their benefits. Here’s what you need to know about who qualifies, when payments start, and what actions you should take.

Impact

Ending WEP and GPO will result in higher monthly payments for over 3 million Americans, particularly:

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• Teachers, firefighters, and police officers in states where public employees do not pay into Social Security.
• Federal workers under the Civil Service Retirement System (CSRS).
• Workers covered under foreign social security systems.

However, around 72% of public employees already pay into Social Security through payroll taxes and will not see any changes. Only those receiving pensions from jobs that did not deduct Social Security taxes will benefit from this law.

Timeline

The Social Security Administration (SSA) began adjusting benefits on February 25, 2025. Affected individuals can expect:

• Retroactive payments for benefits owed since January 2024, arriving by March 31, 2025.
• Higher monthly payments starting in April 2025, covering March benefits.
• Official notices from SSA explaining benefit adjustments. Some may receive two separate letters—one confirming WEP and GPO removal and another detailing new benefit amounts.

Payment

The average increase in monthly benefits is estimated to be $360. However, the actual amount varies based on pension size and Social Security benefits. Some retirees could see increases of $1,000 or more per month, while others may receive smaller adjustments.

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Additionally, SSA will issue lump-sum payments to compensate for reduced benefits in 2024. These payments cover back pay from January 2024, when WEP and GPO officially stopped applying.

Actions

If you are currently receiving reduced benefits due to WEP or GPO:

• No action is required, but ensure SSA has your correct address and bank details at ssa.gov/myaccount to avoid delays.

If you never applied for benefits because of WEP or GPO:

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• Apply now at ssa.gov/apply or call 1-800-772-1213 and say “Fairness Act” to speak with a representative.
• Survivor benefit applications must be done by phone.

Taxes

Retroactive lump-sum payments could increase taxable income for 2025. However, recipients can choose to:

1. Count the entire lump sum in 2025 income (which may increase tax liability).
2. Spread the lump sum over past years (which could lower taxes if income was lower in those years).

Since Social Security benefits are taxable based on combined income, higher payments might push some retirees into a higher tax bracket.

• Singles earning over $34,000 may have up to 85% of benefits taxed.
• Married couples earning over $44,000 may also have up to 85% of benefits taxed.

Scams

Unfortunately, scammers are taking advantage of this law. Remember:

• SSA will never call to demand payment or request sensitive information for benefit adjustments.
• If you receive suspicious calls, hang up and report them at 1-800-269-0271 or visit ssa.gov/scams.
• SSA has launched a Fairness Act webpage and included upfront messaging on their helpline to keep people informed.

Long-Awaited Victory

The Social Security Fairness Act is a major win for many retired public workers, but it does not apply to those who always paid Social Security taxes. For those who qualify, this law provides a financial lifeline and restores benefits that were unfairly reduced.

If you’re eligible, ensure your personal details are updated, remain alert for scams, and prepare for possible tax implications.

Key Takeaways:

• Only public workers with pensions not covered by Social Security will see higher benefits.
• Retroactive payments and benefit increases began rolling out in February and March 2025.
• The average monthly increase is $360, but some retirees may see much more.
• No action is needed for those already receiving benefits, but updating personal info is recommended.
• Be cautious of scams—SSA will never ask for payment to adjust benefits.

FAQs