Social Security Fairness Act Signed by Biden: What It Means for Your Retirement

In January 2025, former President Joe Biden signed the Social Security Fairness Act into law. The new legislation terminated two rules that reduced Social Security benefits for millions of retirees. With the act’s passing, approximately 3 million public workers will now see increased Social Security benefits.

Key Takeaways

• The Social Security Fairness Act eliminated two policies that reduced Social Security benefits for millions of retirees.
• The new law affects around 3 million workers, including teachers, firefighters, and police officers, by ending the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
• Public workers will now receive the full Social Security benefits they’ve earned, improving their financial stability during retirement.

What Is the Social Security Fairness Act?

The Social Security Fairness Act significantly changes how Social Security benefits are calculated for certain public sector workers. The law eliminates two Social Security policies that reduced benefits for retirees with a public pension: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

WPO reduced your Social Security payout if you worked in a job that didn’t pay Social Security, such as teaching or public service, and later qualified for Social Security benefits. On the other hand, GPO cut spousal or survivor Social Security benefits for government employees who received a pension.

For example, let’s say you worked as a teacher in a public school, where your job didn’t pay into Social Security, and later in your career, you worked in a private-sector job that did. When you retired, WEP would have reduced the benefits you earned from your private-sector job. With the new law, however, you’ll receive the full Social Security benefits without penalties.

How the Act Impacts You

If your Social Security benefits have been or would have been reduced by WPO or GPO, the Social Security Fairness Act will help improve your finances. Current retirees will start receiving larger benefit checks, which will help with housing, groceries, and medical expenses.

For future retirees, the act provides more certainty. When calculating your retirement income, you no longer need to factor in WEP or GPO reductions. Public sector workers can retire with the comfort of knowing their full benefits will be available to them regardless of whether they receive a pension from their government job.

The law levels the playing field for workers, ensuring that all individuals receive the benefits they have worked hard to earn, without penalizing those who chose careers in public service.

The Bottom Line

The Social Security Fairness Act is a significant step toward equity for millions of public servants, ending decades of benefit reductions caused by outdated policies. Eliminating the Windfall Elimination Provision and the Government Pension Offset ensures that retirees can now fully access the retiree benefits they’ve earned.

This change brings financial relief to many current retirees and provides future retirees with greater certainty in their retirement planning, creating a more equitable system for all.