The Social Security Fairness Act: What we know so far

The Social Security Fairness Act eliminates the reduction of Social Security benefits based on your work record or the work record of your spouse or former spouse while entitled to a public pension from work not covered by Social Security, i.e. the Civil Service Retirement System. If you are a federal employee or retiree who is covered under the Federal Employees Retirement System, you generally won’t be affected by this new law.  

When President Biden signed the bill into law on Jan. 5, Bill Shackelford, president of the National Active and Retired Federal Employees Association, attended the bill signing and stated afterwards that his organization had opposed the WEP and GPO since their inception, “as unfair penalties that punished hardworking public servants by reducing their Social Security benefits.” A lot of retirees are happy with this new legislation. 

It will undoubtedly take time to implement this new law as it impacts about two million beneficiaries who have their earned Social Security benefits reduced because of the WEP, and close to 750,000 individuals who have had spousal and widow’s benefits payable based on the Social Security work record of their current, former or deceased spouse.  

The repeal of the WEP and GPO will increase the Social Security benefit entitlements of the government worker or retiree who is receiving a pension from work not covered by Social Security. For most of you reading today’s column, this would be the CSRS employees and retirees who are married or were married to a spouse who paid Social Security taxes and the CSRS employee or retiree who earned their own Social Security retirement benefit in addition to receiving a CSRS retirement benefit.  

The WEP can also affect CSRS Offset employees and retirees as well as some employees or retirees who transferred to FERS after more than five years of creditable service under CSRS.   

If you are eligible for Social Security retirement, spousal or widow’s benefits, but haven’t filed for these benefits yet, you may file online  or schedule an appointment. To learn more about Social Security retirement and family benefits, refer to the following publications (these publications have not yet been updated to reflect the passage of the Social Security Fairness Act but can provide information on your entitlement to Social Security benefits): 

• Social Security:  Understanding the Benefits 

• Social Security Retirement Benefits 

• Social Security Survivor Benefits  

• Fact Sheet:  When to Start Receiving Retirement Benefits 

• Fact Sheet: The Windfall Elimination Provision  

• Fact Sheet: The Government Pension Offset 

• How Work Affects Your Benefits

• What Every Woman Should Know 

Also Social Security has a complete list of pamphlets and fact sheets in audio as well as pdf versions.   

Here are a few questions that you may have that may help you begin to understand this new law: 

Question from a CSRS Retiree: How much will the new law increase my Social Security benefit amount? 

Answer: Use this tool to get an estimate of the most that your Social Security benefits have been or would be reduced because of the WEP and GPO.

Question from a CSRS Offset retiree: Do you know whether CSRS Offset retirees are impacted by provisions in the Social Security Fairness Act? I worked for more than 15 years under CSRS and did not pay FICA on those wages. I also had over 12 years covered under the CSRS Offset retirement plan. In total, I had over 30 years of work meeting substantial Social Security earning minimum requirements between my private sector wages and time spent covered under CSRS Offset. Because of having so many years of substantial earnings, I am not affected by the WEP. I would also not be impacted by the GPO since having more than five years covered under CSRS Offset is an exception to this provision. My CSRS retirement was reduced by over $500/month due to retiring under the provisions of the CSRS Offset retirement system. Will the new law restore this reduction to my CSRS retirement benefit? 

Answer: In short, no. The new law will not affect the reduction to your CSRS benefit paid by the Office of Personnel Management. Since your Social Security entitlement is exempt from both the WEP and GPO, the new law will have no effect on your benefits.     

For CSRS Offset retirees and employees who will have fewer than 30 years of substantial earnings covered by FICA taxes, it is possible that when the WEP is removed from their Social Security retirement benefit, this could potentially increase the amount of offset (reduction) to their CSRS benefit. It will depend on whether the CSRS benefit was reduced based on the WEP-adjusted Social Security benefit or whether OPM used the Social Security benefit amount before the WEP was applied.  As of the date of this article, OPM has not provided any guidance on this issue. According to Chapter 50 of the CSRS and FERS Handbook (page 27), the CSRS benefit is offset by the lesser of the following computations: 

1. The amount of the Social Security benefit attributable to the employee's service after December 31, 1983, covered under the interim CSRS provisions or the CSRS Offset provisions; or 
2. The amount obtained by multiplying the following fraction by the Social Security benefit to which the individual is entitled* (or would be entitled upon proper application) at the time the individual's CSRS annuity begins: 

Total Years of Offset Service: 40 

*This amount is reported to OPM by Social Security, and it is unclear whether this figure is already reduced by the WEP in every situation. 

Question from a retiree who transferred from CSRS to FERS: I am a retiree with more than 5 years covered under CSRS and over 30 years of FERS coverage, having switched over when FERS began in 1987. I am already retired and receiving my Social Security and FERS benefits. Does the change in the SSA law impact me? 

Answer: No, your benefits will continue unchanged. You are not affected by the WEP or the GPO since you have met the exceptions to both provisions. See the WEP and GPO fact sheets listed above. 

Question from a CSRS Retiree who is qualified for Social Security retirement: I retired under CSRS in 2020 with more than 30 years of federal employment not covered by FICA withholding. I also worked long enough outside of my federal career to qualify for a small Social Security retirement benefit, and I’m married to a spouse who is receiving Social Security retirement based on more than 30 years of working in the private sector. Will the new law increase my Social Security benefit based on my own work record or the one that my spouse has earned for me? 

Answer: The new law will increase your own earned Social Security retirement benefit by removing the WEP that caused a reduced benefit to be paid. The new law will also remove the reduction on the spousal benefit that your spouse has earned for you that was caused by the GPO. If your spousal benefit without the GPO reduction is greater than your earned benefit without the WEP reduction, then your earned benefit will be increased to the amount of the spousal entitlement, in essence providing you with the greater of the two benefit amounts.   

Currently, you do not need to take any action except to verify that your current mailing address is on file with Social Security along with your direct deposit information, if it has recently changed. Most people can do this online with their personal mySocial Security account without calling or visiting Social Security. Visit www.ssa.gov/myaccount to sign in or create your account.  

This legislation is retroactive to January 2024, resulting in a lump sum payment to those who will be impacted by the increase to their earned and spousal Social Security benefits. The Social Security Administration is evaluating how to implement the Act. Stay tuned as information becomes available later this year. Social Security will provide ongoing updates regarding implementation.