Social Security Fairness Act (SSFA): New Law Boosts Benefits for Retirees

The Social Security Fairness Act (SSFA) was officially signed into law in December 2024. This new law brings significant changes to Social Security benefits, mainly by removing the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

These provisions previously reduced benefits for many public sector retirees and their families. Now, affected individuals will receive retroactive payments for 2024 and increased monthly benefits starting in 2025.

This article explains who qualifies, how much beneficiaries will receive, and when to expect payments.

What Is the Social Security Fairness Act (SSFA) 2024?

The SSFA was signed into law on December 21, 2024, by President Joe Biden. It removes two controversial rules that affected many government employees and their families:

• The Government Pension Offset (GPO): This rule reduced Social Security benefits for spouses and surviving spouses of retired government employees with non-covered pensions.
• The Windfall Elimination Provision (WEP): This rule lowered Social Security benefits for retired public sector employees who had a government pension but also worked in jobs that paid into Social Security.

With these changes, public sector retirees and their families will now receive their full Social Security benefits without reductions. The new law is also retroactive, meaning it applies to benefits starting from December 2023.

Who Is Eligible for the Retroactive Payments and Monthly Increases?

Not all retirees will receive an increase. The SSFA mainly benefits public sector retirees, their spouses, and surviving spouses who receive pensions from jobs that did not contribute to Social Security.

Who Will Benefit?

• Retired public sector employees with a pension from non-Social Security-covered jobs.
• Spouses and surviving spouses of these retirees.

Who Will NOT Benefit?

• Individuals who worked in jobs covered by Social Security (about 72% of state and local government employees).
• Retirees who have always paid into Social Security through their careers.

According to the Congressional Budget Office (CBO), about 2.1 million retirees (3% of Social Security beneficiaries) will get a monthly increase. Additionally, 770,000 spouses and surviving spouses will benefit from the change.

How Much Will Social Security Payments Increase?

The exact increase varies for each person, but the CBO has provided estimates based on averages.

Expected Monthly Increases by December 2025:

• Public sector retirees: +$360 per month
• Spouses of retirees: +$700 per month
• Surviving spouses: +$1,190 per month

Expected Monthly Increases by December 2033:

• Public sector retirees: +$460 per month
• Spouses of retirees: +$860 per month
• Surviving spouses: +$1,520 per month

However, actual payments will vary depending on factors like:

• The type of Social Security benefit (worker, spouse, or survivor).
• The size of the pension.
• When the individual retired.

Some beneficiaries may see only a small increase, while others could receive over $1,000 extra per month.

When Will Beneficiaries Receive Their Payments?

The Social Security Administration (SSA) is still finalizing the payment schedule. However, key details have been confirmed:

• Retroactive payments for 2024 will be sent out once calculations are completed.
• Increased monthly payments will start in 2025.
• Beneficiaries will receive an adjustment for all payments from December 2023 onward.

The SSA will provide updates on the official Social Security website as they finalize their implementation plan.

Steps to Take If You Are Affected

1. Do You Need to Apply?

• If you are already receiving Social Security benefits, you do NOT need to apply. The SSA will automatically adjust your payments and send any back pay you are owed.
• If you have never applied for Social Security benefits but are eligible due to SSFA, you must submit an application.

2. How to Apply for Benefits

• Online: The fastest way is through the SSA website at www.ssa.gov/myaccount.
• By Phone: Call 1-800-772-1213 (Monday to Friday, 9 AM – 6 PM ET).
• For Survivor Benefits: You must apply by phone, as online applications for survivor benefits are not available.

3. Keep Your Information Updated

To ensure smooth processing of payments, make sure your mailing address and direct deposit details are current. You can update them online through your my Social Security account.

Final Thoughts

The Social Security Fairness Act (SSFA) 2024 is a huge victory for public sector retirees and their families. The repeal of the WEP and GPO means that those affected will finally receive the full Social Security benefits they deserve.

With retroactive payments for 2024 and higher monthly benefits in 2025 and beyond, this law provides much-needed financial relief to millions of retirees. While the exact payment schedule is still being finalized, eligible beneficiaries should stay updated through the SSA website and ensure their information is current.

For those who need to apply for benefits, act quickly to avoid delays in receiving payments. This is an important step toward fairness in Social Security benefits, ensuring that all retirees receive the support they need.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.