The Social Security Fairness Act (SSFA) was passed and signed into law in the final days of 2024. While many people are aware that some retirees will get retroactive payments and monthly increases — there are still many important details, including when these payments will arrive, that have yet to be finalized.
I will be closely watching for the release of additional information about the pending payments and increases and reporting the developments here. Bookmark this page to stay up-to-date as the Social Security Administration (SSA) issues details about the implementation of the new law. Check back to learn when those back payments and monthly increases will arrive.
1. What is the Social Security Fairness Act (SSFA)?
The Social Security Fairness Act (SSFA) was signed into law by President Biden on December 21, 2024. It repealed the Government Pension Offset (GPO), enacted in 1977, and the Windfall Elimination Provision (WEP), enacted in 1983.
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The GPO was the first offset provision to be passed and was signed into law by President Jimmy Carter. It was enacted to help improve the financial health of the program by reducing benefits paid to a spouse or surviving spouse collected based on the employment of someone who had a non-covered pension.
The WEP was enacted during Ronald Reagan's presidency. The WEP, which reduced Social Security benefits for workers who receive government pensions not covered by Social Security, was another cost-saving measure. It was also meant to correct a glitch in the benefits formula that treated government employees, who may have contributed to the system for only a few years, as low-wage workers. As a result, those public employees received a disproportionately large Social Security benefit — plus their government pension.
Now, public sector retirees and their spouses will receive the full benefits in addition to their pensions. The SSFA is being applied retroactively to benefits paid after December 2023. That means eligible retirees and spouses will receive a payment to cover the shortfall of their 2024 benefits and will get a monthly increase effective for 2025 and every year after.
2. Who is eligible for the retroactive payments and monthly increase?
Are all public sector retirees eligible for the retroactive payments and increase for 2025 and after? No, you have to meet certain requirements. Only retirees, their spouses or surviving spouses who receive pension benefits based on work not covered by Social Security may see benefit increases under this new law.
According to the SSA, about 72% of state and local public employees work in Social Security-covered employment, where they pay Social Security taxes and are not affected by WEP or GPO. Those individuals will not receive a benefit increase due to the Act.
The Congressional Budget Office (CBO) estimates that 2.1 million retirees, 3% of current SS beneficiaries, will be eligible to receive a monthly increase. The number of spouses and surviving spouses is smaller, with only 770,000 receipts expected to receive an increase due to the repeal.
3. How much will the retroactive payment be? How much will monthly benefits increase by?
I think this is the information most people want to know — how much the retroactive payments be and the amount of the monthly will increase. Fortunately, the CBO has provided estimates of the average amounts the different groups of beneficiaries can expect to receive.
On average, public sector retirees can expect an increase in monthly benefits of $360 in December 2025, which will reach $460 by December 2033.
Spouses and surviving spouses are in line for smaller monthly increases. By December 2025, spouses will receive an average $700 increase, and surviving spouses are expected to see an increase of $1,190. These numbers will grow to $860 and $1,520, respectively, in December 2033.
These estimates are just averages, however. Ultimately, the amount of monthly benefits may change and can vary greatly. The amount will depend on factors such as the type of Social Security benefit received (retired worker, spouse or surviving spouse), the amount of the person's pension and when the employee retired. Some people's benefits will increase very little while others may be eligible for an increase over $1,000 more each month.
4. How far back will SSFA relief be applied to retiree benefits?
December 2023 is the last month that the WEP and GPO will apply to benefits. This means that benefits payable after December 2023 are eligible for the upward adjustment. So, all 2024 payments are eligible for a recalculation without the WEP and GPO reductions. As a reminder, benefits payable in January are typically disbursed in February, and so on.
Public sector retirees and spouses/surviving spouses will eventually receive a payment reflecting what is owed from 2024 and will see an adjustment to their 2025 monthly benefit amounts.
5. When will a person see their Social Security benefit increase because of the SSFA?
The SSA is currently finalizing its plan to implement the Act without impacting current workloads and services to the public. Although, they cannot yet provide an estimated timeframe for when we they adjust a person's past or future benefits, they continue to provide updates on their dedicated SSFA webpage.
We are in year two of "Peak 65," a four-year tsunami of baby boomers reaching age 65. An average of 11,400 Americans will turn 65 every day in 2025, which means 4.18 million people will reach the traditional retirement age in a single year — the highest ever on record. The SSA has more to do in 2025, even without tackling the changes required by the SSFA.
6. What should you do now that the Social Security Fairness Act is law?
If you are retired, you may need to file an application to get the benefit of the SSFA if you never applied for benefits. Be aware that all other Social Security laws and policies, such as benefit reductions for claiming benefits before the full retirement age (FRA) ands the annual earnings test, still apply.
Current public sector employee and retirees. If you are waiting to file after you have reached your FRA in order to boost your monthly check by earning delayed retirement credits, you don't have to do a thing to benefit from the repeal of the WEP provision. When you file for benefits, your monthly amount will not be reduced. You aren't entitled to back benefits because you were collecting benefits in 2024.
If you are unsure if you applied or have never applied. Now is the time to fill out the application. The earlier you get it in, the sooner it can be processed.
The easiest way to apply for retirement or spouses' benefits is online at the SSA website. Be aware that the online application continues to collect pension information until the SSA updates its forms. However, the offset will not impact your benefits. The question is a relic that will be removed.
If you are applying for benefits as a surviving spouse the procedure is different. You can not start the application process online. Under normal circumstances, you would need to call 1-800-772-1213 (call TTY +1 800-325-0778 if you're deaf or hard of hearing) to get started.
Special Fairness Act application intake process. The SSA will take applications by telephone for people who did not previously apply for retirement benefits because of WEP or spouse's or surviving spouse's benefits because of GPO. If you meet these conditions, call 1-800-772-1213; SSA phone lines are open Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET. When the telephone system asks, "How can I help you today?", say "Fairness Act." You will then be asked a few questions and those answers will help the SSA connect you to a WEP-GPO trained representative to take your claim.
If you have previously applied for Social Security benefits. If you have previously applied for benefits as a worker, spouse or surviving spouse — you don't have to do anything. As long as you have your current mailing address and direct deposit information on file, the SSA has everything it needs to notify you and disburse your retroactive benefits.
Stay tuned
As we wait for the SSA to provide updates about when payments will be disbursed and monthly benefits will be raised, retirees should open a my Social Security account to get updates directly from the SSA.
You can use the account update your vital information if necessary. It is the easiest and quickest way to change your address or direct deposit information with SSA. There is no wait on hold need or visit a local SSA office. Visit www.ssa.gov/myaccount to sign in or create an account.
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