The Social Security Fairness Act

The Social Security Fairness Act was signed into law in January 2025. This Act repeals two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced Social Security benefits for individuals who also received pensions from jobs not covered by Social Security, such as certain state and local government employees.

By repealing these provisions, the Act aims to increase Social Security benefits for those affected, which includes some teachers, firefighters, police officers, and federal employees. The Social Security Administration estimates that about 3.2 million people will benefit from this change.

Texas teachers could be affected.  For example, due to the Teacher Retirement System of Texas (TRS), a Texas teacher would typically be subject to the WEP for their own Social Security benefits (if they had any on their record) and/or the GPO for their spousal and survivor Social Security benefits.  This Act now allows Texas Teachers full access to their own Social Security benefits and/or to their spousal and survivor Social Security benefits in addition to their TRS pension.  Exciting!

The specific changes include:

• Repeal of the Windfall Elimination Provision (WEP): This provision previously reduced Social Security benefits for individuals who also received pensions from jobs not covered by Social Security. With its repeal, affected individuals will now receive their full Social Security benefits.
• Repeal of the Government Pension Offset (GPO): This provision reduced Social Security spousal or survivor benefits for individuals who received a pension from non-covered employment. Its repeal means that these individuals will now receive full spousal or survivor benefits.
• Retroactive Benefits: The Act applies retroactively to benefits paid after December 2023. This means that eligible individuals will receive back payments to cover the shortfall of their benefits since January 2024.
• Benefit Increases: The amount of benefit increases will vary depending on factors such as the type of Social Security benefit received and the amount of the individual’s pension. Some people may see increases of over $1,000 per month.
• Implementation Timeline: The Social Security Administration is working on finalizing its plan to implement the Act. It may take more than a year to adjust benefits and pay all retroactive benefits.

These changes aim to make the Social Security system more equitable and ensure that individuals who receive pensions from non-covered employment receive their full benefits.  If this applies to you and/or you have any questions, Virtus Wealth Management is here to help.