If you’re a current or former public sector employee or the spouse, ex-spouse or survivor of one you could see a boost in your Social Security payments thanks to the new Social Security Fairness Act.
This law changes the game for millions of retirees by repealing old rules that reduced or even eliminated benefits for some workers with pensions. Now many people will get an extra $360 a month and the increase is retroactive to 2024.
For more insights on how recent changes may impact your benefits, you can explore our article, Biden Signs Social Security Fairness Act Into Law: What It Means for You.
Table of Contents
What Is the Social Security Fairness Act?
On January 5 2025 President Joe Biden signed the Social Security Fairness Act into law. The purpose? To repeal two outdated laws—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) that reduced benefits for retirees with pensions from jobs that didn’t pay into Social Security.
These old laws affected workers in government, religious, and nonprofit sectors. By repealing them, millions of retirees are now eligible for higher benefits. In fact, the average increase is $360 per month.
The best part? The law makes these benefits retroactive to 2024. That means many retirees will get a lump sum for the additional money they should have received last year.
How Claiming Strategies Might Change
The new law will likely influence how retirees approach their Social Security benefits:
For those impacted by the GPO: Previously many retirees didn’t bother filing because their benefits were reduced to zero. With this change, more people are expected to file.
For WEP-affected retirees: If you’re already receiving benefits you don’t need to do anything. The Social Security Administration will automatically adjust your payments to reflect the new law.
For new filers: Those affected by WEP who haven’t filed yet can now claim higher benefits. Some may even consider delaying their claims to maximize payments over time.
For Example How the Fairness Act Helps Families
Let’s look at an example. Imagine a couple where one spouse has a $4,000 monthly pension from a public-sector job that didn’t pay into Social Security. The other spouse is eligible for $2,000 a month from Social Security.
Under the old GPO rules, spousal benefits were reduced if two-thirds of the pension exceeded half of the Social Security benefit. In this case $1,333 (two-thirds of $4,000) was greater than $1,000 (half of $2,000). That meant no spousal benefits.
With the new law the couple can now receive the full $2,000 in spousal benefits adding a significant boost to their income.
If you’re curious about other benefit increases, you might want to read Social Security Payments Increase in 2025 – Biden signed the Social Security Fairness Act into law for more details.
Broader Impacts on the Social Security System
The Fairness Act directly helps millions of retirees it also adds costs to the Social Security system. This could affect all beneficiaries in the long run.
Social Security is already under financial strain with experts predicting it may only be able to pay full benefits until 2033. The new law could move that date forward by about six months. To address this lawmakers might consider solutions like:
- Raising the full retirement age (currently 67)
- Increasing Social Security taxes for workers
- Taxing higher earners at a greater rate
For more on how changes like these might impact you, check out our guide, Goodbye to Some Benefits. How the New Social Security Fairness Act Will Impact Your Benefits.
Changes Under the Social Security Fairness Act
| Old Rules | New Rules Under Fairness Act |
| Benefits reduced by WEP and GPO | WEP and GPO repealed |
| Some retirees got no benefits | Millions now eligible for Social Security payments |
| No retroactive payments | Increases retroactive to 2024 with lump-sum payments |
FAQs
Who benefits from the Social Security Fairness Act?
The law benefits retirees, spouses, ex-spouses and survivors who were previously affected by WEP and GPO rules especially those with pensions from jobs that didn’t pay into Social Security.
How much extra money will retirees get?
On average retirees will receive $360 more per month. Payments are also retroactive to 2024.
What should I do to claim the increased benefits?
If you’re already receiving Social Security no action is needed. Payments will adjust automatically. If you have not filed yet you can submit your claim to receive the higher benefits.
Bottom Line
The Social Security Fairness Act is a game-changer for millions of retirees. By repealing two outdated laws, it ensures that more people get the benefits they’ve earned. With an average monthly boost of $360 and retroactive payments for 2024, this change offers meaningful support for retirees and their families.