The Social Security Fairness Act is an act signed by former President Joe Biden. The law that was put in place in January 2025 proved particularly beneficial to employees in the public sector.
The SSFA Act eliminated two major factors that previously reduced the benefits that retired employees received. The first was the Windfall Elimination Provision, which reduced benefits for employees who worked in jobs that did not contribute to Social Security.
The WEP reduced the benefits that the spouses of the employees and their surviving family members received. According to the Social Security Administration’s official website, “WEP can reduce your U.S. retirement or disability benefits if you receive a pension based on work.”
Government Pension Offset was the next to go. The GOP was put in place to make sure an individual doesn’t receive disproportionately high benefits. The provision negatively affected the pension that spouses, widows, and widowers of the employees received.
Eliminating these two major factors that previously reduced benefits will result in individuals receiving increased Social Security benefits. The SSA has revealed that they have already made “retroactive payments” worth 7.5$ billion.
The agency plans to continue the disbursement to 1.1 million more people by April 2025. Every individual who has benefited from the SSFA Act received an average of $6,710.
More than 3.2 million former employees will benefit from the amendment of the law. First responders, educators, and many others can expect to receive the benefits of the Act. The Congressional Budget Office revealed how much retirees, spouses, and surviving family members should expect to receive.
Great news—the Senate passed the Social Security Fairness Act, which means it’s heading to @POTUS‘ desk! This will finally repeal the WEP and GPO penalties that unfairly reduce benefits for police officers, firefighters, and other public servants. pic.twitter.com/L3cz3nRM9q
— Congressman Bill Foster (@RepBillFoster) December 21, 2024
According to the CBO, retirees affected by WEP will receive $360 every month henceforth. Spouses who were affected by the GOP will now receive $700 every month. Surviving spouses affected by the same will receive $1,190 per month.
Individuals affected by the law can check the benefits they are eligible for through the SSA online portal. You can expect to receive an SSA notice through the mail, which will explain how detail how many retroactive benefits the individual will receive. If you are an affected individual, you can even contact the SSA for personalized inquiries. Individuals also have the option to consult financial advisors who will help them with retirement planning.
The changes that are being brought about will surely benefit millions of affected people. Retirees will largely benefit from receiving monthly payouts. The relief will prove beneficial especially during the current times with the rise in inflation and skyrocketing prices.
We are sending even more retroactive payments out due to the Social Security Fairness Act. Today, we will issue 354,415 payments totaling $3,353,813,723.26. That adds up to 2,229,899 payments totaling $14,580,218,221.66 to date. More to come!
— SocialSecurity_Press (@SSAPress) March 7, 2025
But the disbursement of such large amounts of money raises the question of whether the SSFA is the most viable option when you consider the Social Security Trust Funds.
If the long-term implications of the law are not thought out, it could put the agency at risk of insolvency by 2035. The Social Security Administration is now obligated to bring about reforms that will make sure to find a way to keep the new programs running efficiently in the long run.
