On January 5, 2025, President Biden signed the Social Security Fairness Act (HR 82) into law. This legislation repealed both the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), which reduced Social Security Administration (SSA) benefits for certain public sector workers, including FPPA members. Alongside other retirement providers, FPPA has long advocated for the repeal of these reductions.
This legislation means that FPPA Members and beneficiaries who receive Social Security benefits will have higher net income each month, due to an increase in SSA benefits. Affected payees will also see a lump-sum payment of retroactive benefits from Social Security. But, this legislation does not affect monthly pension benefits from FPPA.
FPPA is thrilled with the result of this legislation. Repealing WEP and GPO has been a major priority for our Members, especially under the strain of historic inflation in recent years. FPPA’s Board saw this as an opportunity to increase Members’ spendable monthly income and set this repeal as a strategic objective. Through a variety of state and national lobbying efforts, our team has long sought this repeal on behalf of our Members, and we are pleased that many will see an increase to their monthly Social Security benefits.
Learn More: Windfall Elimination Provision and Government Pension Offset
The Windfall Elimination Provision and Government Pension Offset provisions were created in 1983 and 1977. These measures aimed to prevent Social Security payees who also had state or local pensions from ‘double dipping’ into multiple defined benefits. WEP was designed to offset pension benefits for public servants who are exempt from Social Security and who also paid into Social Security based on non-government employment. GPO was implemented to reduce Social Security benefits for spouses or widows of certain public pension recipients.
FPPA Members and beneficiaries who currently receive a reduced Social Security benefit due to one of these offsets can expect an increase to their monthly benefit. Likewise, active defined benefit plan Members who will qualify for Social Security benefits in retirement won’t be affected by WEP or GPO offsets.
Social Security Payments Increase in Spring 2025
Earlier this year the Social Security Administration (SSA) stated that they are determining how to implement the prescribed changes. The SSA has recently announced that benefit changes will take effect in April of 2025.
It’s also important to note that the changes apply to payments going back to January 2024. This means that some payees will also receive retroactive payments.
Contact Social Security With Benefit Questions
For more information about the Social Security Fairness Act or what it means for your retirement benefits, please see this article from Police1 or reach out to the Social Security Administration. For other questions about FPPA benefits, please contact our staff.
Disclaimer
The plain language descriptions in this post are not official definitions. Official rules, regulations and statutes apply.