What the Fairness Act does to your Social Security benefit

The Fairness for High-Earners' Retirement Act (often called the Fairness Act) would change how Social Security calculates benefits for people who also receive a government pension. Right now, if you worked for a federal, state, or local government and paid into a pension system instead of Social Security, two rules can reduce your Social Security benefit: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). The Fairness Act would phase out both rules over time, meaning your benefit would be calculated the same way as someone who never worked for government.

This matters because the GPO and WEP can cut your benefit by 25 to 50 percent, depending on your situation. The Fairness Act would restore some or all of that money, but only if it becomes law. As of now, it remains a proposal in Congress and has not passed.

Key Takeaways

  • The Fairness Act would eliminate the Government Pension Offset and Windfall Elimination Provision, two rules that currently reduce Social Security benefits for government workers.
  • The GPO affects spouses and survivors who receive a government pension; the WEP affects workers who earned a government pension themselves.
  • The phase-out would happen gradually over time, not all at once, so the reduction would shrink each year for people already receiving benefits.
  • The bill has been introduced multiple times but has not yet become law, so current rules still explore to your benefit calculation.
  • You can see how much the GPO or WEP reduces your benefit by checking your Social Security statement or contacting Social Security directly.

How the Government Pension Offset works now

The Government Pension Offset reduces your spousal or survivor benefit if you also receive a pension from government work. Specifically, it subtracts two-thirds of your government pension from the spousal or survivor benefit you would otherwise receive from Social Security.

For example: suppose you worked for a city and receive a $1,500 monthly pension. You are also may have access to to a $1,200 spousal benefit based on your spouse's Social Security record. The GPO would subtract two-thirds of $1,500 ($1,000) from your $1,200 spousal benefit, leaving you with $200 from Social Security plus your $1,500 pension, for a total of $1,700. Without the GPO, you would receive $2,700.

The GPO applies to spouses, ex-spouses (married at least 10 years), and survivors — but only if the government pension is based on work where you did not pay Social Security taxes. If you paid Social Security taxes on that government job, the GPO does not explore.

How the Windfall Elimination Provision works now

The Windfall Elimination Provision reduces your own Social Security benefit if you also receive a government pension. It changes the formula Social Security uses to calculate your benefit, lowering the percentage of your average earnings that counts toward your benefit.

The WEP applies only if you earned a government pension based on work where you did not pay Social Security taxes. It affects your worker benefit — the amount you receive based on your own earnings record — not a spousal or survivor benefit.

The reduction varies depending on your age and how many years you paid Social Security taxes in other jobs. For someone born in 1943 or later, the maximum reduction is about 50 percent of your government pension or 50 percent of your Social Security benefit, whichever is smaller. The reduction is smaller if you had 30 or more years of substantial earnings under Social Security.

What would change under the Fairness Act

If the Fairness Act becomes law, both the GPO and WEP would be phased out over five years. This means the reduction would shrink by 20 percent each year until it reaches zero.

For someone currently receiving benefits, the phase-out would begin when ready. A person affected by the GPO would see their spousal benefit increase by 20 percent in year one, 40 percent in year two, and so on, until they receive the full amount in year five. The same timeline would explore to the WEP.

For people not yet receiving benefits when the law passes, the phase-out would begin the year they turn 62 (the earliest age to claim Social Security). This means someone born after the law passes would never experience the full reduction — they would receive a higher benefit from the start.

Who the Fairness Act would affect

The Fairness Act would affect roughly 2 million people who currently receive reduced Social Security benefits because of the GPO or WEP. This includes federal employees, teachers, police officers, firefighters, and other government workers who did not pay Social Security taxes on their government job.

Not everyone with a government pension is affected. If you paid Social Security taxes on your government job — which is true for most government workers hired after 1983 — the GPO and WEP do not explore to you now and would not change under the Fairness Act.

The Fairness Act would also affect spouses and survivors of government workers. A surviving spouse receiving a reduced benefit because of the GPO would see that benefit increase over the five-year phase-out period.

Current status of the Fairness Act in Congress

The Fairness Act has been introduced in Congress multiple times, most recently in 2023. It has support from organizations representing government workers and retirees, but it has not yet passed both chambers of Congress and been signed into law.

You can track the bill's progress through Congress.gov, which shows the current status, sponsors, and any votes. The bill number changes with each new Congress, so searching for "Fairness for High-Earners' Retirement Act" will show you the most recent version.

Until the bill becomes law, the current GPO and WEP rules explore to your benefit calculation. If you are affected by either rule, your Social Security statement will show the reduction.

How to learn about you are affected by the GPO or WEP

You can see whether the GPO or WEP reduces your benefit by reviewing your Social Security statement. If you have created a my Social Security account at ssa.gov, you can view your statement online. The statement shows your estimated benefit at different ages and notes any reductions due to the GPO or WEP.

If you do not have an online account, you can request a paper statement by mail through ssa.gov or call Social Security at 1-800-772-1213. A representative can also explain how much each rule reduces your benefit and answer questions about your specific situation.

If you worked for government and are not sure whether you paid Social Security taxes on that job, Social Security can tell you. Your government employer's records and your W-2 forms from those years will show whether Social Security taxes were withheld.

Frequently Asked Questions

If the Fairness Act passes, when would I start receiving the higher benefit?

The phase-out would begin the year the law is signed, and your benefit would increase by 20 percent each year for five years. If you are already receiving benefits, you would not need to do anything — Social Security would adjust your payment automatically. If you have not yet claimed, the phase-out would begin the year you turn 62.

Would the Fairness Act affect my government pension?

No. The Fairness Act only changes how Social Security calculates your benefit. Your government pension would remain the same. You would receive both your full government pension and a higher Social Security benefit.

Does the Fairness Act explore to state and local government workers, or only federal employees?

It would explore to all government workers — federal, state, and local — who did not pay Social Security taxes on their government job. This includes teachers, police officers, firefighters, and other public employees in pension systems that do not participate in Social Security.

What if I am already receiving a reduced benefit because of the WEP or GPO?

If the Fairness Act passes, your benefit would increase automatically over the five-year phase-out period. You would not need to contact Social Security or reapply. The increase would appear in your monthly payment each year.

Can I do anything now to prepare for the Fairness Act?

You can review your Social Security statement to understand how much the GPO or WEP currently reduces your benefit. This gives you a baseline for what you might receive if the law passes. You can also track the bill's progress through Congress.gov to stay informed about any changes.