In a major move to improve fairness for retired public workers, the Social Security Fairness Act was signed into law on January 5, 2025, by then-President Joe Biden. This new law removed two rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that had reduced Social Security payments for workers who received pensions from jobs that did not pay into Social Security, such as teachers, police officers, and firefighters.
This change is expected to benefit millions of Americans by increasing their monthly payments and offering retroactive payments to make up for past reductions.
What Were WEP and GPO?
WEP and GPO were two rules in the Social Security system that affected public workers. If you had a government job where you didn’t pay Social Security taxes (like many state or local jobs), these rules reduced or even removed your Social Security benefits.
Many believed this was unfair—especially since public servants also contribute to society. That’s why the removal of WEP and GPO is being seen as a big win for retirees in the public sector.
Who Benefits from This Change?
This change mainly helps retired teachers, firefighters, police officers, and other public workers who had their Social Security benefits reduced because of WEP or GPO. According to the government, more than 3.2 million people will benefit from this update.
As of March 4, 2025, the government has already sent out $7.5 billion in back payments to 1.13 million people. On average, each person received $6,710 in retroactive payments.
How Much Will Monthly Benefits Increase?
Starting from April 2025, public retirees will see a monthly increase in their Social Security benefits. The exact amount depends on the type of pension they receive and their Social Security history.
Some people may see only small increases, while others could get an extra $1,000 or more each month. The Congressional Budget Office (CBO) expects that by December 2025, the average monthly increase will be $360, rising to $460 by 2033.
What Has the SSA Said?
The Social Security Administration (SSA) has made it a top priority to put these changes into action quickly. Acting Commissioner Lee Dudek stated that the SSA began sending retroactive payments from February 2025 and increased monthly benefits from April 2025, following the law’s instructions.
Why This Law Matters
This law corrects what many felt was an injustice in the way Social Security was calculated for public workers. Now, retired public employees will receive the full benefits they deserve—just like everyone else.
The law has brought relief and fairness to millions of families and has strengthened trust in the Social Security system. It also ensures that people who dedicated their lives to public service are not unfairly penalized during retirement.
Also see:- Why Your Social Security Payments Could Stop in 2025 – Key Reasons to Know
