The Social Security Fairness Act, signed into law by President Joe Biden on January 5, 2025, marks a significant shift in retirement benefits for many public sector employees.
This legislation repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), provisions that previously reduced Social Security benefits for those receiving certain public pensions.
In Connecticut, approximately 32,000 retirees, including teachers, firefighters, police officers, and federal employees, are directly affected by this change.
Understanding the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)
The WEP and GPO were enacted to adjust Social Security benefits for individuals who also received pensions from employment not covered by Social Security taxes.
The WEP reduced the Social Security benefits of retirees who had pensions from non-covered work, while the GPO reduced spousal or survivor benefits by two-thirds of the amount of the non-covered pension.
These provisions often led to significant reductions in expected Social Security income for public servants.
Immediate Financial Impact on Connecticut Retirees
With the repeal of WEP and GPO, affected retirees in Connecticut will see an increase in their Social Security benefits starting in April 2025.
The Social Security Administration (SSA) has begun issuing retroactive payments dating back to December 2023, with some beneficiaries receiving increases of up to $1,000 more per month.
Cost-of-Living Adjustment (COLA) for 2025
In addition to the changes brought by the Fairness Act, Social Security and Supplemental Security Income (SSI) benefits are set to increase by 2.5% in 2025, as part of the annual Cost-of-Living Adjustment (COLA). This adjustment aims to help beneficiaries keep pace with inflation.
Connecticut Teachers’ Retirement Board (CTRB) Adjustments
The Connecticut Teachers’ Retirement Board has announced that, based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, the COLA will be 2.5% for 2025.
This adjustment is in line with the Social Security COLA and reflects the investment performance of the retirement fund for the preceding fiscal year.
Implementation and Next Steps for Beneficiaries
The SSA has processed approximately 75% of adjustments related to the Social Security Fairness Act as of late February 2025.
Beneficiaries are advised to ensure their banking information is up to date with the SSA to facilitate timely payments. Eligible individuals who have not applied due to previous exclusions are encouraged to apply online.
| Aspect | Details |
|---|---|
| Legislation Enacted | Social Security Fairness Act signed on January 5, 2025. |
| Provisions Repealed | Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). |
| Affected Connecticut Retirees | Approximately 32,000, including teachers, firefighters, police officers, and federal employees. |
| Benefit Increase | Varies; some may see up to $1,000 more per month. |
| Retroactive Payments | Issued dating back to December 2023. |
The Social Security Fairness Act represents a monumental change for many public sector retirees in Connecticut, ensuring they receive the full benefits they’ve earned.
Alongside the annual COLA, these adjustments aim to provide greater financial security and acknowledge the invaluable service of these individuals.
FAQs
What is the Social Security Fairness Act?
The Social Security Fairness Act is legislation signed into law on January 5, 2025, that repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), allowing certain public sector retirees to receive full Social Security benefits.
How does the repeal of WEP and GPO affect my Social Security benefits?
If you receive a pension from non-Social Security-covered employment, the repeal means your Social Security benefits will no longer be reduced by these provisions, potentially increasing your monthly benefit.
When will I see the increase in my benefits?
The SSA began issuing retroactive payments in February 2025, with increased monthly benefits starting in April 2025.