For decades, millions of public servants across the country — teachers, firefighters, police officers, postal workers, and other government employees — were penalized for their service through two provisions that quietly reduced their Social Security benefits. Many didn't even realize how much money they were losing until they reached retirement age and discovered their monthly checks were hundreds of dollars less than expected.
That changed on January 5, 2025, when the Social Security Fairness Act was signed into law, eliminating both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The ripple effects of this landmark legislation have been significant, with billions of dollars in retroactive payments already distributed to affected beneficiaries. But the question many people are still asking is: does this affect my disability benefits?
If you're currently receiving Social Security Disability Insurance (SSDI), or if you've been hesitant to apply because of how a government pension might reduce your payments, this article breaks down exactly what you need to know about the Social Security Fairness Act and how it could impact your financial situation.
Key Takeaways
- The Social Security Fairness Act, signed into law in January 2025, eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) — two provisions that unfairly reduced Social Security benefits for public servants
- Over 3.1 million people have already received payments totaling $17 billion in retroactive benefits, five months ahead of schedule
- If you receive SSDI and a government pension from work not covered by Social Security, your disability benefits may have increased under this law
- If you never applied for spousal or survivor benefits because the GPO would have reduced them to zero, you may now be eligible and should contact the SSA to apply
- The average monthly increase for affected beneficiaries is approximately $360 per month, with retroactive lump-sum payments averaging around $6,710
- A disability attorney can help you determine whether these changes affect your specific situation and ensure you're receiving every dollar you're entitled to
What Is the Social Security Fairness Act?
The Social Security Fairness Act (SSFA), formally known as H.R. 82, is a bipartisan piece of legislation that repealed two long-standing provisions from the Social Security Act: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). President Biden signed the law on January 5, 2025, after years of advocacy from public employee unions, retirement organizations, and bipartisan members of Congress (Social Security Administration).
The law applies retroactively to benefits payable from January 2024 forward, meaning that beneficiaries who had their payments reduced by the WEP or GPO throughout 2024 were entitled to retroactive lump-sum payments in addition to their newly increased monthly amounts.
This legislation represented a significant victory for public servants nationwide. North Carolina Congresswoman Deborah Ross, who cosponsored the bill, called it a measure to ensure that "people who dedicated their careers to public service and paid into the system rightfully get the benefits they have earned" (Representative Deborah Ross).
Understanding the WEP and GPO — And Why They Were Repealed
To understand the significance of the Social Security Fairness Act, it helps to understand the two provisions it eliminated and why they were considered problematic by so many Americans.
The Windfall Elimination Provision (WEP)
The WEP was a formula originally enacted in 1983 that reduced Social Security retirement and disability benefits for individuals who received a pension from employment that wasn't covered by Social Security — known as a "non-covered pension" — but who also qualified for Social Security benefits through other work (Social Security Administration).
In practical terms, the WEP affected people who split their careers between the public and private sectors. A teacher who worked in a public school system that didn't participate in Social Security, but who also held summer or part-time jobs where they paid into the system, would see their Social Security benefits reduced when they retired. The reduction could be as much as $613 per month in 2025 (Creative Planning). The WEP affected approximately 2 million Social Security beneficiaries.
The Government Pension Offset (GPO)
The GPO, enacted in 1977, took a different approach but had equally harsh consequences. It reduced Social Security spousal or survivor benefits by two-thirds of the amount of a person's government pension. For example, if someone received a $3,000 monthly government pension, the GPO would reduce their Social Security spousal benefit by $2,000. If their spousal benefit was only $2,100, they'd receive just $100 per month — and many people saw their spousal benefits eliminated entirely (Social Security Administration).
The GPO affected nearly 800,000 retirees and disproportionately impacted surviving spouses — often widows — who had spent their careers in public service.
Why Were They Repealed?
Both the WEP and GPO were originally intended to prevent so-called "double-dipping" by people who received both a government pension and Social Security benefits. However, critics argued that these provisions were fundamentally unfair because they penalized public servants who had legitimately earned their Social Security benefits through separate employment. A teacher who worked summer jobs for 20 years and paid Social Security taxes on those earnings was still entitled to benefits based on those contributions — but the WEP reduced what they received.
The Social Security Fairness Act corrected this inequity, and its passage was the culmination of advocacy efforts spanning more than four decades.
How the Social Security Fairness Act Has Been Implemented
The Social Security Administration (SSA) moved quickly to implement the new law. Beginning February 25, 2025, the SSA started adjusting monthly benefit payments and issuing retroactive lump-sum payments to eligible beneficiaries. Acting Social Security Commissioner Lee Dudek noted that the original estimate of taking a year or more to implement the changes would "now only apply to complex cases that cannot be processed by automation" (Social Security Administration).
The progress has been substantial. As of July 7, 2025, the SSA had completed sending over 3.1 million payments totaling $17 billion to eligible beneficiaries — five months ahead of schedule (Social Security Administration). Most affected beneficiaries began receiving their new, higher monthly benefit amounts in April 2025.
The financial impact for affected individuals has been meaningful. The Congressional Budget Office estimated that beneficiaries would see an average monthly increase of approximately $360, though the actual amount varies based on individual employment history and pension amounts (National Education Association). The average retroactive lump-sum payment through early March 2025 was approximately $6,710 (Social Security Administration).
Does the Social Security Fairness Act Affect SSDI Recipients?
This is where things get nuanced, and it's the question that matters most if you're receiving Social Security Disability Insurance benefits.
The short answer: it depends on your specific situation.
The Social Security Fairness Act applies to benefits you receive on your own record — including both retirement and disability benefits — as well as spousal or survivor benefits you receive on another person's record. Here's how to determine whether the law affects you.
If you receive SSDI and a government pension from work not covered by Social Security: Your SSDI benefits may have been reduced by the WEP. Under the Social Security Fairness Act, that reduction has been eliminated. You should see an increase in your monthly SSDI payment, and you may be entitled to a retroactive lump-sum payment dating back to January 2024. In most cases, the SSA has adjusted these amounts automatically.
If you receive SSDI only, with no government pension: The Social Security Fairness Act does not change your benefit amount. The WEP and GPO only applied to individuals who also received a pension from employment not covered by Social Security. If your only income source is SSDI, your benefits remain unchanged by this legislation.
If you're a spouse or surviving spouse receiving benefits, and you also have a government pension: The GPO may have reduced or eliminated your spousal or survivor Social Security benefits. With the GPO now repealed, you may be entitled to full spousal or survivor benefits — plus retroactive payments.
If you never applied for spousal or survivor benefits because the GPO would have reduced them to zero: You may now be eligible for benefits you previously thought were unavailable to you. If this is your situation, you'll need to contact the SSA to file a new application.
It's also important to note that approximately 72% of state and local public employees already work in Social Security-covered employment — meaning they pay Social Security taxes and were never affected by the WEP or GPO (Social Security Administration). These individuals will not see any benefit increase from the Social Security Fairness Act.
Who in North Carolina May Be Affected?
North Carolina has a significant population of public employees, and the Social Security Fairness Act has generated considerable interest in the state. However, not all public servants are affected — the law only applies to those who receive a pension from work that was not covered by Social Security.
In North Carolina, public employees who may be impacted include certain teachers, law enforcement officers, firefighters, and other state or local government workers, depending on the specific retirement system they participated in and whether Social Security taxes were withheld from their earnings.
If you're a North Carolina public employee or retiree who is unsure whether the WEP or GPO was reducing your benefits, the most direct way to find out is to check your personal my Social Security account at ssa.gov or contact the SSA directly.
For individuals who are currently receiving SSDI benefits and who also have a government pension, the interaction between these changes and your disability payments can be complex. Consulting with a disability attorney who understands Social Security law can help clarify exactly how the Social Security Fairness Act impacts your individual circumstances.
Tax Implications of Retroactive Payments
One important consideration that many beneficiaries may not have anticipated is the tax impact of receiving a retroactive lump-sum payment. The SSA reports these payments on your SSA-1099 statement, and they are generally taxable as Social Security benefits in the year you received them (CNBC).
For some beneficiaries, this additional income could push them into a higher tax bracket or increase the portion of their Social Security benefits that are subject to income tax. Tax professionals have recommended that recipients consider using the "lump-sum election" option on Form 1040 or Form 1040-SR when filing their taxes. This provision allows you to recalculate your taxable benefits by attributing the retroactive payments to the prior year they were originally due, potentially reducing your overall tax burden.
Given the complexity of these tax implications, it's wise to consult with a tax professional or financial advisor who can evaluate your specific situation and help you minimize any unexpected tax liability.
What Steps Should You Take?
Depending on your situation, here are the actions you may need to take:
If you're already receiving benefits that were reduced by WEP or GPO: In most cases, the SSA has already adjusted your payments automatically. Make sure your mailing address and direct deposit information are current by logging into your my Social Security account at ssa.gov. You should receive a mailed notice from the SSA explaining any changes to your benefits.
If you never applied for spousal or survivor benefits because the GPO would have eliminated them: Contact the SSA to file a new application for benefits. You can call (800) 772-1213 between 8 a.m. and 7 p.m. local time, Monday through Friday. When the system asks how it can help you, say "Fairness Act" to be connected to a trained representative.
If you're unsure whether the law affects you: Review your earnings history and benefit information through your my Social Security account, or schedule an appointment at your local SSA field office. An attorney who specializes in Social Security disability cases can also review your situation and advise you on any benefits you may be missing.
If you have questions about how these changes interact with your SSDI claim: If you're currently in the process of applying for SSDI, or if you've been denied and are pursuing an appeal, the elimination of the WEP may affect the potential benefit amount you'd receive. An experienced disability attorney can help you understand the full picture.
How a Disability Attorney Can Help You Navigate These Changes
Legislative changes to Social Security can be confusing, especially when they interact with disability benefits, government pensions, and tax obligations. While the Social Security Fairness Act is a positive development for affected beneficiaries, understanding whether and how it applies to your specific situation isn't always straightforward.
A disability attorney can help in several ways. First, they can review your complete benefits picture — including your SSDI payments, any government pension, and spousal or survivor benefits — to determine whether you're receiving everything you're entitled to under the new law. Second, if you need to file a new application for benefits you were previously deterred from seeking, an attorney can ensure your application is complete, accurate, and submitted correctly. Third, if you've been denied SSDI benefits and are pursuing an appeal, your attorney can factor in the elimination of the WEP when calculating your potential benefit amount, which may strengthen the case for why the benefits are worth pursuing.
The bottom line is that public servants who dedicated their careers to their communities deserve to receive the full benefits they earned. The Social Security Fairness Act took a major step toward that goal, and if you think you may be affected, it's worth taking the time to make sure you're not leaving money on the table.
Does the Social Security Fairness Act increase my SSDI payments?
It depends. If your SSDI benefits were being reduced by the WEP because you also receive a government pension from work not covered by Social Security, then yes — the elimination of the WEP means your SSDI payments should increase. If you receive SSDI without a government pension, the law does not change your benefit amount.
Do I need to take any action to receive my increased benefits?
If you're already receiving benefits that were reduced by the WEP or GPO, the SSA is adjusting payments automatically in most cases. You should verify that your mailing address and direct deposit information are current in your my Social Security account. If you never applied for spousal or survivor benefits due to the GPO, you will need to contact the SSA to file a new application.
What if I never applied for spousal benefits because of the Government Pension Offset?
Now that the GPO has been repealed, you may be eligible for spousal or survivor Social Security benefits that were previously unavailable to you. Contact the SSA at (800) 772-1213 and say "Fairness Act" when prompted to be connected with a trained representative who can help you apply.
Will my retroactive lump-sum payment affect my taxes?
Yes, retroactive lump-sum payments are reported on your SSA-1099 and are generally taxable in the year received. You may be able to reduce the tax impact by using the "lump-sum election" on your tax return. Consult a tax professional for guidance specific to your situation.
Can a disability attorney help me understand how these changes affect me?
Absolutely. A disability attorney can review your benefits, determine whether the Social Security Fairness Act impacts your situation, help you file new applications if needed, and ensure you're receiving the maximum benefits you're entitled to. If you're unsure where you stand, a consultation can provide clarity and peace of mind.
Get Help Understanding Your Benefits
The Social Security Fairness Act represents the most significant expansion of Social Security benefits in decades, and for affected public servants and their families, the financial impact can be life-changing. Whether you're currently receiving SSDI, considering applying for disability benefits, or wondering if you're now eligible for spousal or survivor benefits you previously couldn't access, understanding how this law affects you is essential.
The Law Offices of Timothy D. Welborn helps individuals nationwide navigate the complexities of Social Security Disability claims. If you have questions about how the Social Security Fairness Act may impact your benefits, or if you need assistance with any stage of the SSDI process, contact us today for a free consultation. You've earned your benefits — let us help you make sure you receive them.
