If you spent part of your career as a teacher, firefighter, police officer, or other public employee, a piece of legislation signed in January 2025 may have a meaningful effect on your Social Security benefit. The Social Security Fairness Act (H.R. 82, 118th Congress) repealed two provisions that had reduced or eliminated benefits for an estimated 3.2 million public sector workers and their families.
The Two Provisions That Were Repealed
For decades, two rules limited Social Security benefits for people who also received a pension from work that did not withhold Social Security payroll taxes. Both are now gone.
1. Windfall Elimination Provision (WEP)
The WEP reduced a worker’s own Social Security retirement or disability benefit if that worker also received a pension from employment not covered by Social Security payroll taxes, such as many state and local government jobs. It did this by modifying the standard benefit formula and effectively treating pension income as additional Social Security covered earnings, which lowered the monthly benefit. The maximum reduction was approximately $587 a month under the 2024 cap. Teachers, firefighters, police officers, and other public employees in states such as California, Texas, Ohio, Illinois, Massachusetts, and Colorado were commonly affected.
2. Government Pension Offset (GPO)
The GPO reduced or eliminated spousal and survivor Social Security benefits for individuals receiving a government pension from non-Social Security-covered employment. Spousal and survivor benefits were reduced by two thirds of the government pension amount, which in many cases eliminated the spousal or survivor benefit entirely. This provision disproportionately affected widows and widowers of public employees.
Who Qualifies?
A person benefits from this Act if all three of the following apply.
1. They worked in a job covered by a government pension (federal, state, or local).
2. That job did not withhold Social Security payroll taxes.
3. They are entitled to Social Security benefits, either their own earned benefit under WEP or a spousal or survivor benefit under GPO.
The Financial Impact
- WEP repeal: an average monthly increase of $360 to $587 for affected retirees.
- GPO repeal: some surviving spouses who previously received $0 in spousal benefits now receive their full entitlement, potentially $1,000 or more per month.
- Retroactive lump sum: covering January 2024 through the month benefits were adjusted. The SSA completed its initial rollout of these payments, over $17 billion to more than 3.1 million beneficiaries, by July 2025, ahead of its original schedule.
Important Caveats
- The Act does not create new Social Security eligibility. Workers still need sufficient earned credits in Social Security-covered employment.
- The estimated cost is approximately $196 billion over 10 years, which accelerates the Social Security trust fund’s projected depletion date slightly.
- Some affected individuals may need to contact the SSA directly to confirm their records are updated and benefits are correctly recalculated.
- As of 2026, retroactive back pay for new applicants remains a point of dispute. The SSA is currently limiting retroactive payments for new applicants to six months rather than a full year, and a bipartisan group of senators has formally asked the agency to reconsider that interpretation. Anyone who has not yet applied should be aware this issue is unresolved and may affect the size of a retroactive payment.
What To Do Next
If you or a family member worked in public sector employment, teaching, law enforcement, firefighting, or federal, state, or local government, it is worth reviewing whether the WEP or GPO ever applied to your benefit. If it did, you should have already received an adjusted monthly benefit and a retroactive lump sum. Confirming this has occurred, and updating your retirement income projections to reflect the higher Social Security income, is a good next step.
It is also a good moment to revisit your broader Social Security strategy in light of the solvency questions the program faces over the next decade, since the two issues intersect for many public sector families. If you think this applies to you or a family member, reach out to your advisor to review your situation.
Disclosure
This material is provided by Gryphon Financial Partners, LLC (“Gryphon”) for informational purposes only. It is not intended as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Facts presented have been obtained from sources believed to be reliable, though Gryphon cannot guarantee their accuracy or completeness. Gryphon does not provide tax, accounting, or legal advice. Individuals should seek such guidance from qualified professionals based on their specific circumstances.