Social Security Fairness Act Signed Into Law

On Sunday, January 5, 2025, the Social Security Fairness Act (H.R. 82) was signed into law.

The legislation repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), eliminating the reduction of Social Security benefits for retirees who are also entitled to public pensions. 

This in no way impacts or changes the amount of your SBCERA retirement benefit.

Background

The Windfall Elimination Provision, which was passed in 1983, reduced Social Security payments to people who receive a public pension from a job that did not collect Social Security from their pay.  The Government Pension Offset, adopted in 1977, reduced Social Security benefits for people receiving a spousal or survivor benefit who also receive a government pension. 

The legislation is retroactive to December 2023 and eliminates these two penalties for receiving a government pension or disability pension from an employer that did not withhold Social Security taxes.  It also applies to spouses and widowers who receive a government pension of their own.

Who’s Affected

The repeal affects members who are entitled to Social Security benefits. 

Next Steps

The new benefit calculation applies to any Social Security payments due after December 2023.  The Social Security Administration (SSA) is currently evaluating the law and how to implement it.  More information will be provided on their website www.SSA.gov once it is available.

SSA has communicated that if you are already entitled for a recalculation of your Social Security benefit, you do not need to take any action at this time except to verify that Social Security has your current mailing address and direct deposit information.  

Implementation of the changes will be in the hands of the Social Security Administration.  SBCERA will provide information on the progress as it occurs and provide revised educational materials in the coming years.

More information

For more information regarding this matter, please contact Social Security directly at (866) 964-0991 or www.SSA.gov.