Think Tank Alert: President Biden Signs Social Security Fairness Act into Law

January 06, 2025

President Biden recently signed the Social Security Fairness Act into law, repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This legislative action is expected to impact how Social Security benefits are calculated for several million Americans, making it an important development for everyone to understand.

Why It Matters

Even if this change doesn’t directly impact the benefits of most workers, it may affect family members, friends, or colleagues who worked in public service or received pensions subject to these provisions. It’s also an opportunity to reassess strategies for collecting Social Security and broader retirement planning.

Understanding the Basics

  • What Were WEP and GPO? These provisions reduced Social Security benefits for certain individuals who also received a pension from non-covered employment, like some public-sector jobs. Now that these provisions are gone, affected individuals may see an increase in their Social Security benefits.
  • How Does This Impact Retirement Planning? While this change primarily affects those directly impacted by WEP and GPO, it’s a reminder to periodically review Social Security benefits and how they fit into an overall retirement plan.

What Should You Do?

Whether this change impacts you or someone you know, here are steps to consider:

  1. Review Your Social Security Statement
    Log in to SSA.gov to access your Social Security statement and see an estimate of your future benefits. Use this Social Security Benefits Calculator to explore potential benefit adjustments.
  2. Run a Retirement Projection
    Most retirement plan providers offer modeling tools that allow you to run projections using various assumptions, but you can also find calculators online like this one. The Society of Actuaries offers this guide for evaluating retirement planning tools. Use retirement calculators to evaluate how your retirement goals align with your savings and expected benefits.
  3. Contact a Financial Coach
    Unsure about the next steps? Ask your employer if they offer access to financial coaches as a paid benefit. If so, call or schedule a session to discuss your retirement strategy.

Take Charge of Your Financial Well-Being

Understanding changes in Social Security is just one part of planning for retirement. Let the elimination of the WEP and GPO serve as a reminder to keep your plan updated and take advantage of the tools and resources available to you.