The Social Security Fairness Act (SSFA) was signed into law January 5, 2025. This law repealed the Windfall Elimination Provision (WEP), and the Government Pension Offset (GPO), which have both been active since the early 1980s. These two provisions either reduced or eliminated Social Security benefits if you worked in a federal, state, or local government position and received a noncovered pension. If you are eligible, SSFA could help you see an increase in your retirement income.

Who is Impacted

You may be impacted if you are employed by a noncovered employer. Noncovered employers are not subject to paying Social Security taxes. Instead of paying Social Security taxes, employers provide a noncovered pension plan to their employees. That means Social Security taxes aren’t withheld from your paychecks, and your earnings disqualify you from receiving a Social Security benefit during retirement or if you become disabled.

Impacted workers may include teachers, firefighters, police officers, governmental workers, and non-U.S. organizations. Not everyone in these positions will receive a benefit increase. In fact, 72% of state and local public employees working in Social Security-covered employment and were not affected by GPO in 2019.1

Qualifying for Social Security

Social Security uses your total yearly earnings to calculate your Social Security credits. To qualify for Social Security, you must work in a Social Security-covered job long enough to earn 40 credits. You can earn up to a maximum of four credits per year. In 2025, you must earn $7,240 to get four credits for the year or $1,810 to earn one credit. Learn more about how to earn credits.

What’s Changed with SSFA Provisions

WEP

If you earned 40 credits during your career by working for a covered employer but also worked for a noncovered employer, your Social Security retirement or disability benefit was reduced. This scenario may include career changes or moonlighting, such as teachers who tutor during the summer, a firefighter who works at a car dealership on their days off, or those who worked other jobs during high school, college, or other seasonal work.
Below is a hypothetical example provided by the Congressional Research Service. This example assumes the person has a Social Security benefit of $2,500 at full retirement age and becomes eligible for the benefit in 2024. They have paid enough into Social Security to qualify for 20 years of substantial coverage.2

Hypothetical Example:

Before SSFA (WEP Formula)

40% of first $1,174 of earnings $469.60
32% of earnings between $1,174 - $7,078 $424.32
15% of earnings over $7,078 $0
Estimated benefit received: $893.90

After SSFA (Regular Formula)

90% of first $1,174 of earnings $1,056.60
32% of earnings between $1,174 - $7,078 $424.32
15% of earnings over $7,078 $0
Estimated benefit received: $1480.90

GPO

If you had a noncovered job, but your spouse worked in a covered job, your spousal and survivor benefits may have also been reduced or eliminated.
Below is a hypothetical example provided by the Congressional Research Service. This example assumes Spouse A worked in a Social Security-covered job and is entitled to $2,000 in monthly benefits. Spouse B worked a job not covered by Social Security but is entitled to $900 in monthly pension benefits.3 Under GPO, Spouse B would only receive $1,300 when they retire. $900 from their noncovered pension and $400 from their Social Security spousal benefit since the spousal benefit is reduced by $600.

Hypothetical Example:

Before SSFA (GPO) After SSFA (GPO repealed)
Social Security spousal monthly benefit from Spouse A (equal to 50% of the spouse’s Social Security benefit of $2,000) $1,000 $1,000
Non-Social Security-covered pension $900 $900
GPO reduction (2/3 of non-Social Security-covered pension of $900) $600 $0
Total monthly benefit paid to Spouse B $1,300 $1,900

If Your Benefits Were Already Reduced

The SSFA is retroactive to January 2024 and later. This means that the WEP and GPO rules no longer applied beginning January 2024. Employees impacted by this change may be eligible for a one-time retroactive payment to compensate for the difference. If you are already receiving Social Security benefits, the Social Security Administration (SSA) should have your mailing address and direct deposit details. To confirm or update your information, visit your Social Security account at www.ssa.gov/myaccount.

Your Next Steps

Set up time with a financial advisor to review your Social Security benefits and how SSFA may impact your retirement planning. You can review your benefits online through your Social Security account or by contacting a Social Security office.
It’s also important to remember to beware of scams. Bad actors may attempt to take advantage of this situation. The SSA will not send emails or call to ask you to pay for assistance or to expedite benefits.

This blog is up to date as of June 2025 and has not been updated for changes in the law, administration, or current events.

This information is intended to be educational. It is general in nature and should not be considered financial, legal, or tax advice. Consult an attorney or a tax professional regarding your specific situation.

AF-4368-0625

Sources:

1,3https://crsreports.congress.gov/product/pdf/RL/RL32453, page 6, March 7, 2024, Accessed June 9, 2025
2https://crsreports.congress.gov/product/pdf/RS/98-35, page 3, February 28, 2024, Accessed June 9, 2025