On January 5, 2025, the Social Security Fairness Act (Act) was signed into law. The Act eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which negatively impacted the Social Security benefits for many individuals who received pensions on work for which they did not pay Social Security taxes and, therefore, was not covered by Social Security. Many of these retirees also received public pensions.
What this Might Mean for You
If your benefits were reduced due to WEP and GPO, you may be eligible for the following:
Retroactive Payments: You may receive a one-time lump sum covering the benefits lost between January 2024 and December 2024. The Social Security Administration (SSA) has announced that most retroactive payments should be distributed by the end of March 2025. In order to receive your benefits, please double check that you have the correct direct deposit information or address on file with the SSA by logging into your my Social Security Account (if you do not have an account you can set one up there). As always, beware of scams, and anyone asking you to send personal or financial information.
NOTE: If you have filed for spouse’s or widow(er)’s benefits but are not receiving any monthly benefits due to GPO, please call the SSA at 1-800-772-1213 to update your direct deposit information.
Filing for Spousal and Survivor Benefits: If you did not file for spousal or survivor benefits knowing that they would be eliminated under the GPO, you may be entitled to Social Security benefits under the Act. However, you must file for benefits in order to receive any benefits for which you are now eligible. If you never applied for retirement or spousal benefits, you can apply online or call 1-800-772-1213. You cannot apply for surviving spouse benefits online, but you can call the SSA at 1-800-772-1213 to apply.
Sources:
Social Security Fairness Act: Planning Considerations For the Repeal Of The Windfall Elimination Provision (WEP) And Government Pension Offset (GPO), Kitces, January 15, 2025
Social Security Fairness Act: Windfall Elimination Provision (WEP and Government Pension Offset (GPO) update, Social Security Administration, updated March 3, 2025
