The Social Security Fairness Act (SSFA) took effect in 2025 and brings one of the most significant benefit changes in decades.
It repeals two controversial reductions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which affected many retirees, spouses, and survivors who also receive pensions from non-covered government jobs.
This article examines exactly what the law does, who benefits, how the implementation is going, and what retirees should do next.
What is the Social Security Fairness Act and what does it repeal?
The SSFA was signed into law on January 5, 2025, as Public Law 118-273.
It eliminates two rules that had reduced Social Security benefits in some cases:
- Windfall Elimination Provision (WEP): This had reduced the benefit of individuals who earned a pension from a job that did not pay Social Security taxes (so “non-covered employment”).
- Government Pension Offset (GPO): This had reduced spousal, widow(er), or survivor benefits if the spouse or individual received a non-covered government pension.
These provisions were originally introduced in past decades to prevent certain “double dips,” but they also penalized workers who had mixed covered and non-covered employment.
The repeal means people affected will regain benefits previously lost under these provisions.
Who is eligible under SSFA and who will see increased benefits?
Not all retirees will be impacted. To benefit from SSFA, you generally must:
- Have a pension from non-covered work (work that did not pay Social Security taxes), such as many state or local government jobs (teachers, police, firefighters, etc.).
- Also have Social Security credits from work covered by Social Security.
- Be claiming a benefit that was reduced by WEP or GPO (or would have been).
Affected groups include:
- Retirees in public service jobs in many states
- Spouses, widows, widowers whose Social Security was offset by GPO
- Former employees with mixed covered and non-covered work
- Some federal employees who had non-covered pensions under older systems
When will the increased monthly benefits and retroactive payments start?
Retroactive payments:
Because WEP and GPO were repealed for benefits payable after December 2023, SSFA triggers retroactive back pay going back to January 2024 for eligible people.
SSA began paying retroactive benefits on February 25, 2025. By March 2025, over 3.1 million payments were sent, totaling $17 billion.
By March 4, 2025, 1,127,723 persons had received more than $7.5 billion in retroactive payments. The average back payment so far is about $6,710.
Monthly updated benefits:
Those eligible will begin receiving higher monthly benefit payments in April 2025, which correspond to the March 2025 benefit month (Social Security pays one month behind).
SSA emphasizes that simple cases are processed quickly, but complex cases requiring manual review may take longer.
By July 2025, SSA announced that over 3.1 million payments had been processed ahead of schedule.
What will be the size of the benefit increases?
The increases vary based on your individual pension, Social Security record, and previous offsets.
Some may see modest increases; others might see significant boosts.
In press releases, SSA noted that for many, the increase and retroactive payments will substantially restore what was lost under WEP or GPO.
However, the average retroactive payment of around $6,710 suggests meaningful adjustments.
Kiplinger and other sources say some could see benefit increases of over $1,000 per month, depending on pension and previous reduction amounts.
What are the implementation challenges and status in mid-2025?
Although SSA planned the change to take many months, the agency reported faster progress than expected.
By July 2025, it claimed to have completed the bulk of cases ahead of schedule.
Still, some complex cases remain, especially those requiring manual review of records or ambiguous pension data.
SSA urges affected persons to wait until April 2025 before contacting for missing payments, to avoid confusing cases as payments roll out.
If you haven’t received your payment by mid-2025, check that your deposit and mailing information with SSA is correct.
SSA also sends mailed notices to beneficiaries whose benefits are adjusted, explaining the change and retroactive payment.
How does SSFA interact with existing Social Security rules and other benefits?
Other Social Security rules remain in force: for example, reductions for claiming before full retirement age, delayed retirement credits, and the annual cost-of-living adjustment (COLA) still apply.
SSFA does not eliminate those adjustments.
Retroactive payments are considered taxable income in the year received, so they may affect your tax or Medicare premium calculation.
SSFA does not alter how Social Security is calculated based on lifetime earnings or how benefits grow, it only removes penalties from WEP and GPO.
What should retirees do now to see if they benefit?
- Log in to your my Social Security account and verify your address, bank account, and contact info are up to date so retroactive and monthly payments reach you.
- Watch for mailed notices from SSA explaining your new benefit and retroactive payment.
- If you believe you were affected but have not had your benefit adjusted or back payment, contact SSA after April 2025 (when many automated payments will be complete).
- Review your pension and benefit history, especially if you had mixed covered and non-covered employment, to verify that your case is being processed correctly.
- Consult a tax advisor, because the lump-sum retroactive payment may change your tax liability for the year you receive it.
