On January 5, 2025, the Social Security Fairness Act was signed into law, ending the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These two provisions reduced or eliminated Social Security benefits to many people receiving pensions from work not covered by Social Security, such as teachers, firefighters or police officers. The elimination of these provisions was effective January 2024.
The Social Security Administration has announced it will begin making retroactive payments to those impacted by this act, typically beginning with the April payment. Those receiving retroactive or adjusted payments will receive a mailed notice from Social Security explaining the changes. These adjustments could have an impact on the estimated taxes due for 2025.
If you are not currently receiving Social Security benefits, you should contact them to verify they have your correct address and bank information on file. If you are receiving benefits and you feel you are impacted by this new act, there should be no need to contact the SSA before receiving your April benefit payment.
More information can be found on the Social Security Administration’s website at https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.