Navigating H.R. 82 – The Social Security Fairness Act

Updated 3/21/2025

H.R. 82, also known as the Social Security Fairness Act, was signed into law on January 5, 2025, by President Biden. This legislation eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which previously reduced Social Security benefits for millions of public sector employees receiving non-covered pensions on earnings not subject to payroll taxes.

This document provides an overview of the history of WEP and GPO, the implications of the new law, retroactive payments, and case examples illustrating how beneficiaries may see changes to their benefits.

History of WEP and GPO

The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) were introduced to prevent “double-dipping” in Social Security benefits. These provisions reduced or eliminated benefits for many public sector workers.

WEP (Introduced in 1983): Aimed at reducing Social Security benefits for individuals who worked in jobs that did not pay into Social Security but also became eligible for benefits through other covered employment. It impacted retirees in education, law enforcement, and other public sectors.
GPO (Introduced in 1977, enacted in 1983): Applied to spousal or survivor benefits, similar to the existing SSA dual entitlement rules, reducing them by two-thirds of the non-covered pension amount, often resulting in a zero-dollar benefit for many surviving spouses.

These provisions affected teachers, firefighters, police officers, and other government employees. H.R. 82 repealed these provisions, allowing public sector workers to receive a Social Security benefit without the reductions.

Key Provisions of H.R. 82

Ends the Windfall Elimination Provision (WEP), restoring full retirement and disability benefits to those impacted.
Ends the Government Pension Offset (GPO), reinstating full spousal and survivor benefits to those impacted.
Applies retroactively to January 2024, meaning affected beneficiaries will receive retroactive payments from February 2024 forward.
Covers over 3 million individuals who previously faced benefit reductions.

Retroactive Benefits & Implementation Timeline

Last month that the WEP and GPO rules applied: December 2023
First month without WEP and GPO reductions: January 2024 (paid in February 2024)
Social Security Administration (SSA) is processing adjustments, but due to the complexity of the cases and budget limitations, full implementation may take months.

SSA is currently:

Implementing automatic benefit recalculations and retroactive payments.
Adjusting pending and new claims.

Beneficiaries who never applied for benefits due to WEP or GPO may need to submit applications online at www.ssa.gov/apply or by calling 1-800-772-1213 and requesting the “Fairness Act” application process. Survivor benefits may not be applied for online.

Will Every Public Worker Receive an Increase?

Only public workers who were subject to WEP or GPO will see an increase. Those who never contributed to Social Security or were not eligible for benefits under the affected provisions will not see a change.

The highest concentration of WEP-affected workers:

Alaska, Colorado, Massachusetts, Nevada, Ohio, California, Hawaii, Illinois, Louisiana, Maryland, and Texas.

Examples of H.R. 82’s Impact - NORM, PLEASE HIGHLIGHT THE NEW MULTIPLIER PERCENTAGE (70% AND 40%)

Case #1 – Both Spouses Earned Non-Covered Pensions

William & Wanda both receive non-covered pensions.
Under the old rules, their Social Security benefits were reduced significantly due to WEP and GPO.
With H.R. 82:
- Their retirement benefits increase.
- Spousal and survivor benefits become available.
- Lifetime benefit increase: $147,000.

Case #2 – Higher Earning Spouse Earned Non-Covered Pension and had additional earnings that were subject to payroll taxes, exceeding the substantial earnings limit in 26 years.

William (Higher Earner) has a non-covered pension.
Wanda (Lower Earner) has no pension.
With H.R. 82:
- William’s benefits increase.
- Wanda’s spousal benefits increase.
- Survivor benefits remain unchanged.
- Lifetime benefit increase: $27,000.

Case #3 – Lower Earning Spouse Earned Non-Covered Pension

William (Higher Earner) has no pension.
Wanda (Lower Earner) has a non-covered pension.
With H.R. 82:
- Wanda’s retirement benefits increase.
- She becomes eligible for spousal & survivor benefits.
- Lifetime benefit increase: $129,000.

RSSA Roadmap & H.R. 82 Toggle Switch

The RSSA Roadmap software includes an H.R. 82 Toggle Switch:

When toggled ON: Removes WEP and GPO reductions, showing benefit increases.
When toggled OFF: Maintains pre-H.R. 82 calculations.

This feature allows advisors and clients to compare scenarios with and without WEP/GPO reductions.

Challenges in Implementation

Adjusting over 3 million records will take time and require manual reviews in many cases.
Increased demand on SSA’s 800-number, with 7,000+ calls per day regarding H.R. 82.

Communication from SSA:

Starting February 25, 2025, the Social Security Administration (SSA) began issuing one-time retroactive payments to affected beneficiaries. These payments cover benefit increases back to January 2024, the month when WEP and GPO ceased to apply. Most recipients are expected to receive these payments by the end of March 2025.
Adjusted monthly benefit amounts will commence in April 2025, reflecting the removal of WEP and GPO deductions.
The increase in monthly benefits varies based on individual circumstances, including the type of Social Security benefit received and the amount of the non-covered pension. Some beneficiaries may see significant increases, while others might experience minimal changes.

Patience Advised:

Monitor SSA’s website for updates on those cases that my require manual intervention.
Review direct deposit and mailing information to ensure benefit adjustments.
Be cautious of scams, as bad actors may attempt to exploit the situation.

Conclusion

H.R. 82 is a major change to Social Security beneficiaries affected by WEP and GPO. While implementation to all beneficiaries may take time, millions of public sector retirees will soon see the financial impact of these repeals. Those impacted should stay informed, verify SSA notices, and consider using the RSSA Roadmap for personalized planning.

For more information, visit www.ssa.gov/benefits/retirement/social-security-fairness-act.html or contact SSA at 1-800-772-1213.

Created 3/20/2025

Updated 3/21/2025

Prepared by: Norm Haug - AI Assisted