The Social Security Fairness Act 2026 brings long-awaited relief to millions of government employees and their families whose Social Security benefits were previously reduced. The law took effect on January 5, 2025, and its impact is now gradually showing up in payments during 2025–2026. The biggest change is the elimination of benefit reductions caused by the WEP and GPO rules, which means many eligible beneficiaries can now expect higher monthly payments than before.
Why were benefits reduced in the past?
For many years, a large number of government employees worked in jobs where Social Security taxes were not deducted, and their retirement benefits were built through separate government pension systems. However, if they also had jobs where they paid into Social Security, or if they were eligible for spousal or survivor benefits, their Social Security payments were still reduced. These reductions happened because of two specific rules, which are now being phased out under the new law.
What changes with the removal of WEP and GPO?
The new law eliminates two key provisions. The first is the Windfall Elimination Provision (WEP), which reduced Social Security retirement benefits for people who also received a government pension. With WEP removed, benefits will now be calculated using the standard formula, increasing the likelihood that retirees receive their full Social Security benefit based on their earnings. The second rule is the Government Pension Offset (GPO), which reduced or eliminated spousal and survivor benefits for many people. With GPO eliminated, these beneficiaries can now qualify for full spousal or survivor benefits like other eligible recipients.
Who benefits the most from this change?
The primary beneficiaries are those whose payments were previously reduced due to WEP or GPO. This includes public school teachers, police officers, firefighters, state and local government employees, certain federal employees under the CSRS system, some workers receiving foreign pensions, and spouses or dependents whose benefits were reduced in the past. Those who were never affected by WEP or GPO will not see changes to their benefits.
How will benefits be recalculated and how much could payments increase?
Previously, reduced benefits were calculated using special formulas. With the new law in place, the standard Social Security calculation will apply. This means retirement or disability payments will be based only on earnings subject to Social Security taxes, without reductions due to other government pensions. In some cases, monthly benefits could increase by several hundred dollars, and reports suggest that some individuals may see increases of up to $1,000 per month.
Will retroactive payments be issued?
Another important feature of the law is the possibility of retroactive payments. Eligible individuals who should have received higher benefits starting in January 2024 may receive back pay in a lump sum. These payments are typically deposited directly into bank accounts, along with an official notice explaining the adjustment.
What should beneficiaries do to receive updated benefits?
Most people already receiving Social Security do not need to reapply. If the SSA has accurate records of your earnings and pension history, benefits should be recalculated and updated automatically. Those who did not apply in the past because of WEP or GPO may now want to check their eligibility and consider filing a new application. Most importantly, make sure your bank details and personal information are correct and up to date in your SSA profile to avoid any payment delays.