Social Security Fairness Act: Restoring Benefits for Public Servants

The Social Security Fairness Act, signed into law on January 5, 2025, brings significant changes to Social Security benefits for those impacted by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

Key Changes
  1. Elimination of WEP and GPO

    The Act eliminates both the WEP and GPO provisions, restoring full Social Security benefits to those previously affected.

    • Windfall Elimination Provision (WEP)
      This provision reduces the Social Security benefits of individuals who receive pensions from jobs not covered by Social Security.

    • Government Pension Offset (GPO)
      This provision affects spousal or survivor benefits for individuals who receive a government pension from non-Social Security-covered employment.


  2. Retroactive Payments

    The Social Security Administration has begun expediting retroactive payments, with most beneficiaries expected to receive them by the end of March 2025. These payments cover the period from January 2024, when the WEP and GPO were nullified, to the present. For many, this will result in a substantial lump-sum payment, providing a significant financial boost.

  3. Increased Monthly Benefits

    Starting in April 2025, beneficiaries will see an increase in their monthly Social Security benefits. The exact amount will vary depending on factors such as the type of Social Security benefit received and the amount of the individual's pension. This increase will enhance retirement income and improve overall retirement security for many affected individuals.

Next Steps

If you haven’t filed for Social Security because you believed these reductions would eliminate your benefit, apply as soon as possible to start collecting the benefits that are owed to you.

How We Can Help

If you are affected, contact your advisor so they can incorporate these changes into your financial plan. This may involve:

  • recalculating retirement income projections.
  • reallocating investment accounts.
  • adjusting withdrawal strategies from investment accounts.

It is also important to consider the tax implications of receiving retroactive payments and increased monthly benefits. Both are taxed like other Social Security benefits, with up to 85% of that income being taxable.

Your team at DCM can help you navigate these topics to help ensure you make the most of your benefits.

This article was featured in the Spring 2025 edition of the Rising Dividend Report.

Read more articles from this issue here.

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