One exciting change being implemented in 2025 directly impacting many Americans is the implementation of the Social Security Fairness Act. Under this legislation, workers in the public sector, including professions such as police officers, firefighters, teachers, and other such public servants, may see a restoration of Social Security Income benefits that were previously lost under the Windfall Elimination Provision and the Government Pension Offset laws.
Advisor Mallory Kretman shares, “From what I’ve seen so far, it’s been a welcome change for the handful of clients I serve who were impacted by the WEP and GPO! It means more money coming in each month, and for one of my clients in particular, it means they will be able to draw a Social Security benefit—something not previously available to them!”
Laurel Wealth has been discussing these changes with clients in recent months and summarized many of the details here.
Why Was Social Security Reduced in the First Place?
Under these now repealed provisions, those who earned and were eligible to receive a pension based on work not covered by Social Security were subject to a reduction in their Social Security income benefits. The WEP applied to a worker’s own record, and the GPO applied to benefits for a spouse based upon a public worker’s record and benefits.
When these provisions were enacted, the intention was to prevent non-covered government workers from receiving higher total benefits than they otherwise may be entitled, since the Social Security calculations tend to favor those with lower average career wages. Due to the confusion and complexity of these reductions in calculating benefits and the general unpopularity of these laws, Congress and the Biden Administration agreed to change the law in late 2024.
How Are Benefits Being Restored for These Recipients?
Under the new Act, the WEP and GPO laws were repealed and full Social Security income benefits were restored to impacted public servants now or in the future. The restoration applies retroactively to Social Security payments on or after January 1, 2024, so many impacted individuals can expect to receive a one-time lump-sum payment from January 2024 onward. In addition, on a going-forward basis, impacted recipients will see an increase to their monthly Social Security income as dictated by their true, full earned benefit. Increases may range from a little to over $1,000 per month for some recipients.
The catch is that this benefit restoration affects about 3.2 million Americans. Recalculating everyone’s benefits could take considerable time. As of March 3, 2025, only 20 percent (or roughly 600,000 recipients) of the total have had their benefits adjusted. Despite this, the latest update from the Social Security Administration (SSA) indicates that retroactive payments owed should be paid out by the end of March, and most eligible recipients should receive their first adjusted payment in April 2025 (for March). In addition, anyone who has been affected or due a retroactive payment will receive notification by the SSA by mail regarding their adjusted benefits and/or retroactive payment.
Our Recommendation
For public service workers, Laurel Wealth Planning believes this change is a significant financial opportunity and a boost to their retirement income planning. We encourage all impacted professionals in the public sector to investigate how their benefits may change and consult with their qualified financial advisor or tax professional to determine how this change in benefits may affect their own financial situation.
If you know of family members, friends or others in your community who may be affected by this benefit change, we encourage you to spread this news and increase public awareness so no one misses out. Mallory explains, “With the changes occurring in our society today, the Laurel Wealth Planning team believes that community service and assisting others is more important than ever.”
Talk to Us About How These Changes Could Affect Retirement
Are you one of the individuals whose Social Security benefits could be affected by the new legislation? Laurel Wealth Planning can help guide you with financial and retirement planning that is focused on your own unique objectives and circumstances. The focus is on you, the client, where your interests and future come first.
To schedule a complimentary meeting, contact Laurel Wealth Planning online, email laurel.wealthplanning@laurelwealthplanning.com, or call (952) 854-6250. Find out whether the Laurel Wealth Planning team is the right financial advisor for you based on your wants and needs.
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