Social Security Administration announces adjusted payments beginning under Social Security Fairness Act

On February 25, 2025, the Social Security Administration (SSA) announced that the SSA has begun to pay retroactive benefits and will increase monthly benefit payments to individuals whose Social Security benefits had been reduced by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act, signed into law on January 5, 2025, repealed the Windfall Elimination Provision (WEP) applicable to workers, and the Government Pension Offset (GPO) applicable to workers’ surviving spouses, with respect to monthly benefits payable in or after 2024.

Initially, the SSA had estimated that implementing the Social Security Fairness Act to adjust Social Security benefits and pay all retroactive benefits to impacted individuals could take more than one year. However, in a press release dated February 25, 2025,¹ Acting Commissioner of Social Security Lee Dudek noted that the SSA had pursued an “aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April” to implement the Social Security Fairness Act as quickly as possible. The SSA’s “original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation.”¹

What do employers need to know?

• The SSA estimates that about 72% of government employees’ wages are subject to Social Security and thus are not impacted by the Social Security Fairness Act.

Windfall Elimination Provision (WEP)

The WEP reduced the primary insurance amount of a government worker who has wages covered by Social Security and who also has a pension based in whole or in part on their own earnings from employment not covered by Social Security. Note: Some states do not require Social Security payments or wage reductions for certain professions (e.g., teachers).

• The repeal of the WEP means that retired federal workers and other public servants who spent part of their career working in the private sector (and accordingly received wages that were subject to Social Security withholding) will not have their benefits reduced with respect to monthly benefits payable in or after 2024.

Government Pension Offset (GPO)

The GPO reduced a surviving spouse’s Social Security benefit if the deceased worker had also received a federal, state or local pension based on earnings from non-covered government employment.

• The repeal of the GPO means that a surviving spouse of an applicable deceased participant will not have their Social Security benefit decreased with respect to monthly benefits payable in or after 2024.

Additional information

On February 25, 2025, the SSA updated its dedicated website, Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update,² to post new Q&As to assist individuals whose Social Security benefits may be adjusted under the Social Security Fairness Act. Among the takeaways from the Q&As:

Implementation date for increase to an individual’s Social Security Benefit:

Where possible due to the use of automation, the SSA will begin to pay retroactive benefits and will increase monthly benefit payments to people whose benefits have been affected by the WEP and GPO under the schedule noted below.

The SSA cautions that “For the many complex cases that cannot be processed automatically, additional time is required to manually update the records and pay both retroactive benefits and the new benefits amount.”

The SSA will mail an explanation to individuals with an adjusted Social Security monthly benefit and/or a retroactive payment. The SSA notes that some individuals “may receive the retroactive payment before receiving the mailed notice.”

One-time Social Security payment

• An individual due retroactive adjusted Social Security benefits as a result of the Social Security Fairness Act will receive a one-time retroactive payment, deposited into the bank account on file with the SSA by the end of March 2025. This retroactive payment will cover the increase in their benefit amount retroactive to January 2024, the month when WEP and GPO no longer apply.
• The SSA recommends that individuals “wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March.”

Increased monthly Social Security benefit

• Most individuals due an increased Social Security monthly benefit will begin receiving their new increased monthly benefit amount in April 2025 (for their March 2025 benefit).
• The SSA recommends that individuals wait until after receiving their April payment before contacting SSA to ask about their monthly benefit.

When to contact the SSA

• Individuals whose Social Security benefits currently reduced by WEP and surviving spouses whose Social Security benefits currently reduced by GPO do not need to take any additional action if SSA has the current mailing address and direct deposit information on file. An individual can verify that this information is accurate by accessing their account via www.ssa.gov/my account.
• Individuals who never applied for Social Security benefits because of WEP or GPO may need to file an application. The SSA recommends that these individuals apply for benefits online or call the SSA. An individual applying for surviving spouse’s benefits may only apply by contacting the SSA at its toll-free telephone number (1-800-772-1213).

Voya will continue to monitor developments regarding the Social Security Fairness Act and provide updates when applicable.

Contact your Voya Representative for more information.

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