The Social Security Fairness Act
On January 5, 2025, President Joe Biden signed the Social Security Fairness Act into law after being introduced by Representative Garrett Graves (R-LA) nearly two years ago. You may think this Act will address long-standing concerns about Social Security solvency; instead, it primarily impacts government workers who receive or will receive a pension from work but are not covered by Social Security benefits. The Act repealed two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), increasing the retirement benefits of these affected government workers.
Specifically, the Windfall Elimination Provision (WEP) provision reduced Social Security benefits for individuals who receive a pension from employment not covered by Social Security. It affected public sector workers such as teachers, firefighters, and police officers, reducing their Social Security benefits. The Government Pension Offset (GPO) reduced Social Security spousal or survivor benefits by two-thirds of the recipient’s public pension. This often left surviving spouses with little to no Social Security income.
Now that WEP and GPO have been repealed.
- Change in Retirement Benefits: Individuals affected by these provisions will now receive their full Social Security benefits, both for their own work history and/or for spousal or survivor benefits.
- Impact on Social Security: According to the CBO (Congressional Budget Office), enacting the changes from the Social Security Act would increase Social Security benefit payments. This payment increase “would drive the program’s spending even further above its revenues than it is already projected to be under current law.”
The signing of the Social Security Fairness Act can change the plans of many government workers throughout the country. If you believe the changes from the recently enacted Social Security Fairness Act will impact your retirement and disability benefits. Do not hesitate to contact our team at Heritage Wealth Architects to discuss your questions or concerns further. We regularly help our clients navigate social security benefits and hone in on the right claiming strategy for each individual.
Resources
H.R.82 – Social Security Fairness Act of 2023
The Social Security Fairness Act: What we know so far
Long-Term Effects of H.R. 82, the Social Security Fairness Act of 2023