What is the Social Security Fairness Act, and Who Does it help?

You may be one of more than 3.2 million Americans impacted by the Social Security Fairness Act, signed into law January 5, 2025, by former President Joe Biden (1). The act adjusts the retirement benefit calculation of certain beneficiaries by repealing the 1983 Windfall Elimination Provision (WEP) and 1977 Government Pension Offset (GPO) previously passed by Congress to address potential system insolvency. These beneficiaries would have been employed by a government agency having an opt-out (Section 218) agreement with the Social Security Administration (SSA).

Most workers benefiting from the law will be state and local government employee members of public retirement systems who did not contribute to Social Security but also participated in Social Security through employment in private sector jobs during their careers. For example, a public school teacher who contributed to the CA State Teachers Retirement System (and who did not pay SSA taxes) may have worked at a retail store during summer months, where payments were withheld.

Adjusted benefits may be available if you were previously classified as a “non-covered” employee, including:

• teachers and local public safety personnel such as firefighters, police officers, and certain members of the California Public Employees’ Retirement System (CalPERS);
• federal employees covered by the Civil Service Retirement System; and
• people whose work had been covered by a foreign social security system.

Under Social Security, you earn retirement credits when your employer collects applicable taxes from your income. If you don’t have 40 quarters (or credits) of Social Security tax withholding, the Social Security Fairness Act won’t directly change your eligibility, as you still need those 40 credits to qualify for retirement or disability benefits, Medicare, and your family’s eligibility for survivor benefits (2).

If you don’t have 40 credits, you may still be eligible for benefits as a spouse or surviving spouse if your spouse qualifies for benefits. When a spouse dies, the surviving spouse will receive benefits based on the higher of the two Social Security calculations (3).

Implementation of the Social Security Fairness Act began on February 25. Retirement benefit adjustments include a one-time payment covering the months retroactive to January 2024 (when the act became effective and WEP and GPO no longer applied), and a permanent monthly benefit increase when a recipient’s account is processed. Eighty percent of accounts were updated by March (for April benefit payments). The SSA asserts processing has been expedited through existing automation for most accounts, but additional time is required for complex cases, which will be updated by November. Persons with adjusted benefits receive a notice by mail from Social Security explaining the benefit change or past due payment. (1)

If you are among those who anticipate Social Security adjustments but have yet to receive the retroactive payments, the California Attorney General has set up a link to report Social Security disruptions. Although your regular Social Security monthly benefit should NOT be impacted by announced cuts to federal agencies, you can also report other issues you may experience.

NOTES

1. “Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update,” Social Security Administration, updated July 2, 2025.
2. “Review record of earnings,” Social Security Administration.
3. “Filing Rules for Retirement and Spouses’ Benefits,” Social Security Administration.