What is the Social Security Fairness Act?

The Social Security Fairness Act was passed by the House in November and signed by former President Joe Biden on January 5. It eliminates two rules that limited payments to public service workers, such as teachers, firefighters, postal service workers, and police officers.

The two rules repealed by the act are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP is a formula used to adjust Social Security worker benefits for people who receive noncovered pensions and qualify for Social Security benefits on other earnings that are covered by Social Security. The GPO reduces the Social Security benefits of spouses, widows, and widowers who also receive government pensions of their own.

The elimination of the WEP and GPO is expected to increase benefits by $360 on average for 2.1 million Social Security beneficiaries. The Congressional Budget Office predicts that the elimination of the GPO will increase monthly benefits payments by around $700 for spouses and $1,190 for surviving spouses in December 2025.

Who is Eligible for Retroactive Payments?

Qualifying individuals will begin to see their higher monthly payment in April for their March benefit. The Social Security Administration is prioritizing retroactive payments, which will continue to be sent incrementally throughout the month of March. The average retroactive payment so far is $6,710.

To receive retroactive payments, individuals do not need to take any action. The Social Security Administration suggests that eligible beneficiaries ensure their current mailing address and direct deposit information are up to date.