The Social Security Fairness Act: Major Changes Explained [Video]

The Social Security Fairness Act: Major Changes Explained

The Social Security Fairness Act has officially been signed into law, marking one of the biggest changes to Social Security in over 40 years.

View the video below for a detailed explanation of these changes:

Video Summary

This new law eliminates two provisions – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – that previously reduced or eliminated Social Security benefits for individuals with non-covered pensions.

Moving forward, affected individuals will receive their full benefits, with retroactive payments dating back to December 2023. While this is a win for many retirees, concerns remain about the long-term financial stability of Social Security.

Key Points of the Social Security Fairness Act

• What Changed?
  • The WEP and GPO have been eliminated.
  • Affected individuals will now receive full Social Security benefits.

• How WEP & GPO Worked
  • These provisions reduced benefits for retirees who paid into both Social Security and a separate, non-covered pension system. A common example of this in Texas is the Teacher Retirement System (TRS).
  • Social Security is designed to replace a larger percentage of income in retirement for low-income earners. When paying into the non-covered pension plan, these individuals’ income was not reported to Social Security and thus appeared to be lower income earners. The goal of the WEP & GPO was to prevent “double-dipping” – having both a full pension and a higher percentage Social Security benefit.
  • The WEP could reduce an individual’s retirement benefit with Social Security. The GPO could reduce or eliminate spousal & survivor benefits.

• Who Benefits?
  • Individuals who worked in jobs covered by Social Security and non-covered pension systems.
  • Those whose benefits were previously reduced or eliminated under WEP/GPO.

• Retroactive Payments
  • The law was signed in January 2025, but retroactive payments go back to December 2023—about a year of back pay.

• Criticism & Future Concerns
  • Social Security already faces funding issues, projected to run into shortfalls in about 10 years.
  • Critics argue that eliminating WEP and GPO will add more strain to the system.

The elimination of WEP and GPO has been debated for decades, with previous attempts to repeal them failing. The passage of this law is a major victory for affected retirees, but it also raises concerns about Social Security’s financial health. With projected funding issues in the near future, lawmakers may need to address broader Social Security reform soon.

Will Goodson
Senior Financial Advisor
National Social Security Advisor (NSSA®)

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