The U.S. Social Security Administration (SSA) plans to move forward with the Social Security Fairness Act passed last January. This law repealed by default the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) laws. The latter two had adversely affected millions of Americans, including widows, retirees and public sector personnel under the Civil Service Retirement System. Under these laws, the amount of their monthly welfare payments had been reduced and even eliminated. That is why the administration is now processing retroactive payments for those affected, and they estimate that by November 2025, they will have caught up with all payments.
Social Security Fairness Act
Promulgated by former President Joe Biden, the Social Security Fairness Act serves a vital purpose for the economic stability of U.S. citizens. Enacted on January 5, 2025, this law automatically repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Thus, it ends the regulation responsible for the reduction of Social Security benefits for those workers who did not contribute to Social Security, as is the case for some public sector employees. It intends to restore this right to retirees, widowers and public sector personnel under the Civil Service Retirement System.
Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)
Both laws had been in place in the United States since 1983, following their passage by former President Ronald Reagan. These are federal laws that affect Social Security beneficiaries and their benefits. On the one hand, the Windfall Elimination Provision (WEP) reduces the amount of benefits received for disability or retirement for those who simultaneously receive pensions from jobs through which Social Security payments were made.
This is the case for millions of workers who retired under the Civilian Employees Retirement System (CSRS). This includes teachers, firefighters and public sector workers. On the other hand, the Government Pension Offset (GPO), is responsible for the reduction and even elimination of widow’s benefits for those receiving pensions from jobs not covered by Social Security.
Benefits of de Act
A total of 3.2 million U.S. citizens will benefit from the implementation of this new law, through which they regain their right to receive benefits from the Social Security Administration (SSA). Some of these benefits are:
- All public sector employees (firefighters, teachers, civil servants), and any law enforcement worker, will have access to receive a Social Security pension, even if their job is not subject to this administration.
- There will be an increase in the benefits of those beneficiaries who are covered by the Civil Service Retirement System.
- All those affected by the GPO will also recover their right to receive Social Security benefits.
- All persons who are covered by a foreign social security system will be reimbursed accordingly.
In order to compensate those affected by these cuts in Social Security benefits, the Administration has implemented a procedure for retroactive payments, and adjusting the amount of monthly pensions as well. To ensure that they receive the correspondent payments, beneficiaries must make sure that both their personal and bank information are up to date. In this way, updates will occur automatically, reducing delays.
What does this change mean for the retirement process?
The Social Security Fairness Act seeks to establish a level of equality and fairness in the economy for all U.S. citizens. Regardless of the type of work they have had throughout their active lives, beneficiaries are entitled to live a dignified retirement, with a pension package that guarantees them the necessary minimums. The Social Security Administration not only wants to reward those who have suffered under the previous federal laws with retroactive payments, but also to reinforce the trust between administration and citizen.
In the case of retirees, this is a substantial improvement in their quality of life. This new measure gives them security and confidence after recovering their right to receive benefits. In the same way, civil servants, public workers and widows and widowers know that they can count on financial assistance, and that when the time comes for them to retire, this right will be guaranteed.
Are you one of those affected by the cuts in Social Security?
