The Social Security Fairness Act (the “Act”) was signed into law on January 5, 2025. The most important feature coming out of the Act is the termination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The WEP and the GPO reduces or eliminates Social Security monthly benefits of over 3.2 million people who receive a pension that was not covered by Social Security, known as a “non-covered pension,” because they did not pay Social Security (FICA) taxes while covered by these pensions. The Act increases Social Security benefits for certain types of workers, including:
• Teachers, firefighters and police officers in many states.
• Federal employees covered by the Civil Service Retirement System (CSRS), and
• Individuals whose work had been covered by a foreign social security system.
This column presents the latest information issued by the Social Security Administration (SSA) regarding implementation of the Act.
SEE ALSO:
Effect of the WEP/GPO elimination on a CSRS annuitant’s monthly Social Security benefit
The elimination of the WEP will increase the monthly Social Security retirement or disability benefit of a CSRS annuitant who earned their own monthly benefit in addition to receiving a CSRS annuity. The elimination of the GPO will increase or establish a spousal Social Security monthly benefit for CSRS annuitants who are married, or were married, to a spouse who paid Social Security taxes and was receiving a Social Security monthly benefit.
The SSA is currently finalizing its plan to implement the Act while limiting negative effects on its regular workloads and services to the public. The SSA cannot yet provide an estimated time frame for when the SSA will adjust an individual’s past of future Social Security benefits. But the SSA will continue to provide updates on their web site (https://www.ssa.gov).
In terms of how much an individual’s monthly Social Security benefit will increase, the amount can vary greatly. Depending on factors such as the type of Social Security benefit received and the amount of a CSRS annuitant’s monthly CSRS annuity will influence any increase in an annuitant’s monthly benefits. The increase could be as little as $200 to $300 per month increase or some Social Security beneficiaries may be eligible for over $1,000 more each month.
Note that the WEP elimination can also affect CSRS Offset annuitants, as well as some FERS annuitants who transferred to FERS from CSRS after more than five years of creditable service under CSRS.
What CSRS annuitants who have never applied for spouses’ or surviving spouses’’ benefits do?
Since the GPO can reduce or more likely eliminate a CSRS annuitant’s spousal or surviving spousal Social Security benefit, some CSRS annuitants may have never applied for their benefits. In that case, CSRS annuitants who have never filed an application for a spousal Social Security benefit should do so as soon as possible. Filing sooner may help the annuitant get a higher benefit amount.
The most convenient way to apply for Social Security benefit or a spousal benefit is online at https://www.ssa.gov/apply.
A survivor benefit application is not available online. Individuals who cannot apply online for benefits should call 1-800-772-1213, Monday through Friday, 8:00 am to 7:00 pm to learn other ways to apply.
If an individual is entitled to a spouse’s or to a surviving spouse’s benefits and the individual’s are currently being reduced or eliminated by the GPO; or if an individual is entitled to their own retirement or disability benefit which is being reduced by the WEP then the individual should consider reviewing their mailing address and/or direct deposit information with the SSA. This will allow the SSA to adjust the individual’s benefits as quickly as possible. Generally, no other actions are needed at this time.
Effect of Social Security Fairness Act on individuals who pay Medicare premiums directly to the CMS.
Most Medicare beneficiaries pay their monthly Medicare Part B (medical insurance) and/or Medicare Part D (prescription drug coverage) monthly premiums through automatic deductions from their monthly Social Security retirement or disability benefit check. A Medicare beneficiary who is not receiving a monthly Social Security retirement benefit check can pay their monthly Medicare Part B and/or Medicare Part D premiums using Automatic Clearing House (ACH), also known as Medicare Easy Pay or Online Bill Payment.
If a beneficiary pays their Medicare monthly premiums directly to the Centers for Medicare and Medicaid Services (CMS) or through Medicare Easy Pay due to the WEP or GPO reduction, then the Social Security Administration (SSA) recommends that until they get a notice from the SSA, that the beneficiary should continue to follow the instructions on the Medicare premium bill and pay the bill to ensure their Medicare coverage does not stop. The SSA will send a notice telling individuals when their Social Security record is updated. Once the individual begins receiving a Social Security benefit, Medicare Part B and/or Medicare Part D monthly premiums will be deducted from their monthly Social Security retirement or disability benefit. If the monthly Social Security retirement or disability benefit is insufficient to pay the Medicare Part B and/or Medicare Part D monthly premiums, then the CMS will bill the individual for the remainder. The SSA notice will include this information.
The challenges facing the SSA to implement the Social Security Fairness Act
Although Congress acted on a bipartisan basis to pass legislation ending the WEP and GPO that affected some federal employees and other state and local government employees, Congress failed to give the SSA any money to implement the Social Security Fairness Act. The SSA’s ability to implement the Social Security Fairness Act without negatively affecting the SSA’s day-to-day customer service relies on Congressional funds.
The law requires the SSA to adjust Social Security benefits for over three million individuals. Since the law’s effective date is retroactive, the SSA must adjust an individual’s past benefits, as well as future benefits. The WEP affects more than two million retired public servants, while 750,000 spouses and survivors are affected by the GPO, with many public servants seeing their entire spousal or survivor benefit eliminated by the GPO.
Adding to the SSA challenges and woes is that the agency is operating under a continuing resolution and is currently experiencing a 50-year staffing low. To make matters worse, the Trump Administration issued a temporary hiring freeze for most federal agencies. All SSA customers including those not affected by the Social Security Fairness Act will face delays and increases in waiting times on the telephone as the SSA prioritizes this new workload.
Given these funding and staffing shortage challenges, it is not surprising that officials at the SSA have said that it could take more than a year to fully implement the Social Security Fairness Act repealing the WEP and GPO.
Avoiding the scams associated with the WEP and GPO repeal
It is unfortunate that there are individuals out there who may attempt to take advantage of situations when money is involved, especially with senior citizens when it comes to their retirement. The SSA will never ask or require a person to pay for assistance or to have their benefits started, increased, or paid retroactively. Any federal employee or retiree who is eligible for Social Security benefits should hang up the telephone and not click or respond to any individual or company offering to increase or expedite their Social Security benefits. Federal employees and retirees are encouraged to learn more about Social Security-related scams, and how to report them, to the SSA Office of the Inspector General at www.ssa.gov/scams.