The Social Security Fairness Act was signed into law on January 5, 2025.
Yesterday, President Biden signed H.R. 82, the Social Security Fairness Act, into law. It previously passed the U.S. House of Representatives on November 12, 2024, and the U.S. Senate on December 21, 2024.
On December 20, 2024, the Senate voted to pass the bill 76-20. This bipartisan legislation would eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Together, these provisions negatively impact or eliminate Social Security benefits for millions of retired public servants.
On December 21, 2024, the Senate passed H.R. 82, the Social Security Fairness Act of 2023, without amendment, by Yea-Nay vote, 76-20. The bill previously passed the House on November 12, 2024 by roll call vote, 327-75-1, under suspension of the rules. The bill now moves to the President for his signature.
In 2025, all beneficiaries will see a 2.5% increase to their Social Security benefit checks, thanks to an annual cost-of-living adjustment. Of note, the 2024 increase was 3.2%. This year's COLA is the lowest increase beneficiaries have seen since a 1.3% increase in 2021, reflecting a decrease in the pace of inflation.
On January 5, 2024, President Biden signed into law the Social Security Fairness Act of 2023 (H.R. 82), which repeals two long-standing federal laws: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These WEP provisions were included in the legislation signed by President Ronald Reagan on April 21, 1983.
Retirement Examples
The monthly retirement benefits are reduced or increased based on your age after WEP reduces your ELY benefit. If you turn 62 in 2024 (ELY 2024) and you have 20 years of substantial earnings, WEP reduces your monthly benefit by $587. (Refer to the chart below.)
The idea of Congress stealing from Social Security and not paying interest is a complete myth. There are, however, tangible reasons for Social Security's struggles, many of which can be tied to long-running demographic shifts.
The Social Security Act was signed into law by President Roosevelt on August 14, 1935.
The so-called “five-year rule” for Social Security disability allows people who have already received disability benefits to skip a required waiting period in the re-application process after they've returned to work.
If you are receiving a public pension and are interested in filing for benefits, you may file online at ssa.gov/apply or schedule an appointment.
The American Federation of State, County and Municipal Employees (AFSCME), and another supporter of the repeal, reported that that the states most affected by the WEP and GPO are Alaska, California, Colorado, Connecticut, Illinois, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, and Texas.
The Act created several programs that, even today, form the basis for the government's role in providing income security, specifically, the old-age insurance, unemployment insurance, and Aid to Families with Dependent Children ( AFDC ) programs.
Your Social Security benefit might be reduced if you get a pension from an employer who wasn't required to withhold Social Security taxes. This reduction is called the “Windfall Elimination Provision” (WEP). It most commonly affects government work or work in other countries.
Last updated January 6, 2025
The Social Security Fairness Act, HR 82, concerning the Windfall Elimination Provision and Government Pension Offset, was signed into law on January 5, 2025.
Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.
Additional information to help understand the WEP can be found on the WEP Fact Sheet. The only full exception to this reduction for CSRS retirees is if you performed 30 or more years of substantial Social Security covered employment (a partial exemption is used for substantial earnings for more than 20 years up to 30).
Congress passed the WEP to remove that advantage. Under the provision, we reduce the 90% factor in our formula and phase it in for workers who reached age 62 or developed a disability between 1986 and 1989. For people who reach 62 or developed a disability in 1990 or later, we reduce the 90% factor to as little as 40%.
If you're impacted by the Windfall Elimination Provision or the Government Pension Offset, this law likely applies to you. The law applies to Social Security benefits beginning in 2024 and moving forward. According to the Congressional Budget Office, beneficiaries will see an average monthly increase of $360.
Ronald Reagan
Reagan's signature raised the retirement age from 65 to 67 — albeit gradually over decades through 2027.
The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) were penalties that, for forty years, negatively impacted educators and other public servants, preventing us from receiving the Social Security benefits we deserve.
The new law repeals both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), two provisions added to the Social Security Act in 1983 that unfairly reduced the earned Social Security benefits of many retired public servants and their spouses who worked in both covered and non-covered jobs ...