You may have heard about the Social Security Fairness Act, which was signed into law on January 5, 2025. But what is it and who does it help?

In this week’s Money Wisdom Question Series, Ian Fergusson, RICP® breaks down this sweeping change and how it may impact your Social Security benefits.

Who It Impacts

If you are one of the over 3.2 million people who were affected by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), these provisions have now been eliminated by the Social Security Fairness Act. Under the WEP and GPO, anyone who received a pension based on work that was not covered by Social Security had their benefits reduced or eliminated.

Certain workers may see increases in their Social Security benefits, including some teachers, firefighters, and police officers in various states; federal employees under the Civil Service Retirement System; and individuals whose employment was covered by a foreign social security system.

When It Will Go into Effect

Starting the week of February 24, 2025, the Social Security Administration began issuing retroactive payments and increasing benefits for those impacted by the WEP and GPO. Retroactive payments, covering benefit increases back to January 2024, are set to be fully issued by the end of March.

Since Social Security pays a month behind, most beneficiaries will see their new monthly amount in April 2025 and should wait until then to inquire about the status of their retroactive one-time payment. Those affected will receive a mailed notice explaining the changes.

What to Do Now

While you wait for your benefit adjustments, take a moment to verify that the Social Security Administration has your correct earnings history. If you were eligible for a Social Security spousal or survivors benefit but never applied because you assumed the WEP or GPO would eliminate it, you may want to consider filing for those benefits now. The sooner you act, the better off you will be.