Congress passed the Social Security Fairness Act in late 2024, which was signed into law by the President in early January 2025. The new law repeals two provisions from the 1983 Social Security reforms: the government pension offset and the windfall elimination provision. These provisions were initially implemented to correct an imbalance in benefits for workers who split their careers between jobs covered by Social Security and those not covered, such as state or local government positions.
Before the 1983 reforms, benefit calculations assumed workers spent their entire careers in Social Security-covered jobs, leading to inflated benefits for some. Repealing these provisions will retroactively increase Social Security benefits for approximately three million people who qualify for or receive pensions from state and local governments or certain other employers. Affected workers will receive higher benefits, and some may be eligible for lump-sum payments for retroactive increases.
Repeal increases Social Security benefits
However, the Social Security Administration (SSA) has cautioned that adjusting current benefit payments and disbursing retroactive benefits may take over a year due to the complexity of the process. Much of the work must be done on a case-by-case basis and processed manually.
The law did not provide additional staffing or benefit payment funding, which may delay implementation. The SSA is updating its information and guidance on a dedicated webpage for those affected or believe they might be. It is recommended that individuals check the page regularly for updates on their eligibility and the status of benefit adjustments.
Repealing the government pension offset and windfall elimination provision is expected to accelerate the depletion of the Social Security trust fund and increase yearly benefit payouts. This change will provide much-needed relief for many retirees who have worked in both covered and non-covered jobs.
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