Social Security Fairness Act: A Closer Look at Increased Benefits and Processing Challenges

Less than 1 minute Minutes

June 4 2025

NATIONWIDE – The Social Security Fairness Act, signed into law on January 5, 2025, aims to significantly increase Social Security benefits for over 2.8 million individuals, primarily public sector workers, by repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). While most eligible beneficiaries have already begun receiving increased payments and substantial retroactive funds, the Social Security Administration (SSA) is currently working to resolve a backlog of “complex cases” that require manual processing.

Key Facts:

Legislation’s Purpose: The Social Security Fairness Act repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), two provisions that previously reduced Social Security benefits for individuals receiving pensions from non-Social Security covered employment.
Impact on Beneficiaries: This new law directly benefits millions of public sector workers, including many teachers, firefighters, and police officers, as well as some federal employees, by allowing them to receive full Social Security benefits that were previously reduced.
Current Status and Delays: As of early June 2025, approximately 91% of affected beneficiaries have received their adjusted payments and retroactive funds. However, a remaining percentage of cases, deemed “complex,” require manual review by the SSA, leading to ongoing payment delays for these individuals.

The passage of the Social Security Fairness Act marked a significant legislative victory for advocates who argued that the WEP and GPO unfairly penalized public servants who had contributed to both a public pension system and Social Security through other employment. Now, as the Social Security Administration works to implement the law, questions have arisen regarding the speed and efficiency of benefit adjustments.

The Social Security Fairness Act directly addresses two longstanding provisions that impacted the Social Security benefits of many public sector employees: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP historically reduced Social Security benefits for individuals who also received a pension from a job where they did not pay Social Security taxes, even if they had other employment where they did contribute. Similarly, the GPO reduced spousal or survivor Social Security benefits for individuals who also received a government pension from non-covered employment. The repeal of these provisions means that affected individuals are now eligible for higher Social Security payments, reflecting a more comprehensive calculation of their earnings history.

Who Benefits and By How Much?

The primary beneficiaries of this act are individuals who spent significant portions of their careers in public service roles, such as teachers, firefighters, police officers, and certain federal employees, in states where their pensions were not covered by Social Security. This group also includes some individuals with foreign social security pensions. The increase in monthly benefits varies depending on individual circumstances, including the type of Social Security benefit received and the amount of their non-covered pension. Estimates suggest that monthly increases could range from modest amounts to over $1,000 for some individuals. In addition to future monthly increases, eligible individuals are also receiving lump-sum retroactive payments covering the period from January 2024, when the WEP and GPO no longer applied.

Why Are There Delays?

A couple out for a walk; source: unsplash

While the vast majority of eligible individuals have seen their benefits adjusted, the Social Security Administration (SSA) has confirmed that approximately 9% of cases, totaling around 300,000 individuals, are experiencing delays. These “complex cases” cannot be processed automatically by the SSA’s existing computer systems and require manual review and calculation by agency staff. The SSA, under newly appointed Commissioner Frank Bisignano, is prioritizing these claims, reportedly offering overtime to employees and directing staff to focus on resolving these cases by July 1. Despite these efforts, the agency anticipates that all beneficiary records will be updated by early November 2025. This manual workload has also reportedly led to slower processing times for other routine SSA services.

What Should Beneficiaries Expect Next?

For those who have not yet received their adjusted benefits or retroactive payments, the SSA has stated that a notice will be sent by mail explaining the changes and payments. It is possible for beneficiaries to receive their retroactive payment before receiving the official mailed notice. The SSA encourages beneficiaries to monitor their official website for updates on the implementation progress. While the intent of the Social Security Fairness Act was to swiftly rectify what many viewed as an inequity, the practicalities of implementation for a large federal agency have introduced a phased rollout, leading to both relief for many and continued anticipation for others.