The Social Security Fairness Act holds significant implications for retirees, particularly those who have worked in public sector jobs. For many retirees who have worked in both private-sector jobs covered by Social Security and public-sector jobs with their own pension systems, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) have resulted in reduced or even eliminated Social Security benefits. The Social Security Fairness Act aims to rectify this by reducing or eliminating the penalties imposed by these provisions. As a result, retirees who have been impacted by these rules could see an increase in their Social Security benefits, allowing them to receive a fairer and more accurate payout based on their total work history.

For retirees, this means a more predictable and adequate source of income during retirement. Many public sector workers, including teachers, police officers, and firefighters, often receive pensions from their respective state or local governments. However, because the WEP reduced Social Security benefits for people who have earned a pension in non-Social Security-covered jobs, these individuals often face a significantly lower retirement income than they might have expected. With the Social Security Fairness Act now in effect, these retirees may see their benefits return to a level that better reflects their full career contributions, improving their financial stability in retirement.

Additionally, the Social Security Fairness Act could have a positive impact on surviving spouses or widows/widowers who have been affected by the Government Pension Offset (GPO). The GPO reduces Social Security survivor benefits for individuals who also receive a pension from a non-Social Security-covered job. By addressing these inequities, the Act could help ensure that surviving spouses and other beneficiaries receive the full amount of Social Security benefits they are entitled to, which would provide them with more financial security after the death of a spouse or partner.

The Social Security Administration initially said it could take up to one year to make the payment adjustments, but it automated the process for most affected seniors. If you're among this group, you'll see your benefits increase with your March or April 2025 payments. For others, it may take longer. How much more you'll get depends on your work history and the type of benefit you receive. The average increase for those affected by the WEP is expected to be about $360 per month while the average increase for spouses affected by the GPO will be around $700 per month. Widow(ers) who had benefits reduced due to the GPO will see the largest average increase at $1,190 per month.

You may also be entitled to retroactive benefits going back as far as your January 2024 payment. The Social Security Fairness Act applies to all benefits paid after December 2023. If you've been claiming benefits for a while, you may get a one-time retroactive payment as early as this month for the amount you had withheld under the WEP or GPO going back to the beginning of last year.

The Social Security Administration will deposit any retroactive benefits and your new, larger benefit amount in the bank account it has on file for you. If this isn't where you want the money sent, reach out to the SSA as soon as possible to correct this. You can update your payment information yourself by creating a My Social Security account. You can also call the SSA or visit your local Social Security office.