Retirement Social Security

Social Security Change Means Big Money for Some Retirees (Are You One of Them?)

A long-awaited law eliminates two controversial rules that reduced benefits for millions of retirees with government pensions.

By Adam Palasciano

Edited by Laura Hohenstein

Updated Jan. 6, 2026

For years, some retirees saw their Social Security checks reduced or eliminated because of where — or how — they worked. A recent change to federal law aims to correct that, potentially unlocking thousands of dollars in additional benefits for certain households. Understanding how the Social Security Fairness Act (SSFA) works could help you maximize your senior benefits and avoid leaving money unclaimed. For many retirees, this update represents a meaningful shift in retirement income planning.

Here's what to know about the law and who it affects.

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What is the Social Security Fairness Act?

The Social Security Fairness Act (SSFA) repeals two long-standing provisions known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), according to the Social Security Administration. Those rules reduced or eliminated benefits for people who earned pensions from jobs not covered by Social Security taxes.

As a result, more than 2.8 million retirees saw smaller checks than workers with similar lifetime earnings. The new law restores benefits for affected individuals, including some public-sector workers.

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Who qualifies for the SSFA?

The law applies to retirees who receive pensions based on work that was not covered by Social Security. This group includes some teachers, firefighters, police officers, federal employees under the Civil Service Retirement System, and individuals whose work was covered by a foreign social security system.

However, most state and local government workers — roughly 72 percent — paid Social Security taxes and were never subject to WEP or GPO, meaning they will not see a change. Spouses, widows, and widowers whose benefits were tied to non-covered government work may also qualify for increases.

How much money could you be owed as a result of the SSFA?

Benefit increases under the law vary widely depending on individual circumstances. Some retirees may see only modest monthly changes, while others could receive more than $1,000 in additional benefits each month, according to the SSA.

The exact increase depends on factors such as the type of benefit received, the size of the government pension, and when the individual retired. In many cases, the larger the original reduction under WEP or GPO, the larger the potential restoration of benefits.

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When will the money be paid out?

Social Security benefits are paid one month behind. Most affected retirees began receiving their adjusted monthly benefits in April 2025 (for March 2025 payments).

As of July 7, 2025, the SSA reported issuing more than 3.1 million payments totaling roughly $17 billion — several months ahead of schedule. Anyone receiving an adjustment or retroactive payment should be sent a mailed notice explaining the change.

What you may (or may not) need to do if you qualify under the SSFA

Many retirees do not need to take any action to receive their updated benefits. If you were already receiving reduced payments and the SSA has your current banking and contact information, the adjustment was likely processed automatically.

However, individuals who never applied for benefits because of WEP or GPO, or whose records may be outdated, may need to contact the SSA directly. Calling 1 (800) 772-1213 and referencing the "Fairness Act" can help connect you with a trained representative.

Why this change matters for retirement planning

The repeal of WEP and GPO goes beyond higher monthly checks. For some retirees, restored benefits can improve cash flow, reduce reliance on savings, or delay withdrawals from retirement accounts.

These changes can influence broader planning decisions, including tax strategy and long-term budgeting.

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Bottom line

If you're eligible, this law could change how much Social Security income you can rely on in retirement. For retirees affected by WEP or GPO, the Social Security Fairness Act restores benefits that were reduced for decades, in some cases resulting in substantial monthly increases.

Even if you are unsure whether you qualify, reviewing your benefit history and understanding the new rules can help you set yourself up for retirement with clearer expectations and more accurate income planning.

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