Social Security Fairness Act: Social Security Fairness Act to help retired US public sector employees

Then US President Joe Biden signed the Social Security Fairness Act into law during a ceremony in the East Room of the White House. (Image credit: AP)

The Social Security Fairness Act of 2024, signed earlier this month, is poised to bring long-awaited relief to nearly 3 million retired U.S. public employees who faced reduced or eliminated Social Security benefits under Unexpected elimination provision (WEP) and Public pension offset (GPO) rules.
These provisions, enacted decades ago, had significantly affected retirees such as teachers, firefighters and police officers.
Then the United States President Joe Bidenat a White House signing ceremony, had described the legislation as a critical step toward ensuring that hardworking Americans can retire with dignity. “This law restores fairness to our Social Security system and provides much-needed financial relief to millions of retirees,” Biden said, according to CBS News.
Impact of the Act
The WEP, created in 1983, reduced benefits for people who worked in both Social Security-covered and non-covered jobs.
Meanwhile, the GPO, introduced in 1977, reduced spousal or survivor benefits for retirees receiving public pensions. Both provisions often led to unexpected financial burdens during retirement, particularly for those transitioning from the private sector to the public sector.
Kathryn McCall, a financial advisor at CAPTRUST, highlighted how the repeal benefits such individuals. “Those who worked part of their careers in the private sector and later took on jobs in the public sector will now receive fair compensation without pension penalties,” McCall explained, as reported by KCRA.
According to Congressional Budget Office (CBO), the removal of these provisions will result in:

Recipients will also receive one-time payments retroactive to January 2024 covering deficits for the past year, CNBC reported.
Implementation and concerns
While the law’s benefits are clear, its economic consequences have sparked debate. Critics warn that the repeal could add approximately $200 billion to the federal deficit over the next decade and accelerate Social Security’s insolvency by six months. Despite these concerns, the law has been hailed as a win for equity pension benefits.
The Social Security Administration is currently reviewing procedures to implement the changes, with improved monthly payments expected to begin in late 2025. Beneficiaries are not required to take any immediate action, but should ensure that their contact and payment information is up to date with SSA .
A decades-long struggle
The push to repeal the WEP and GPO spanned decades, with bipartisan efforts only gaining momentum in recent years. Edward Kelly, president of the International Association of Fire Fighters, called the repeal a restoration of a broken promise. “Retired firefighters and emergency workers will now receive the full benefits they have earned,” Kelly said, as quoted by CBS News.
As the new law comes into effect, pensioners and politicians alike are reflecting on its importance. Financial planner Barbara O’Neill, personally affected by the WEP, was quoted by CNBC as saying, “The change simplifies retirement planning and provides financial stability to countless retirees”.