In 2025, lawmakers passed major changes to Social Security that are reshaping retirement for federal employees. The Social Security Fairness Act (SSFA) increases benefits for millions of public sector workers — including Feds — by repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These changes bring relief but raise questions about retirement benefits down the road.
The Social Security Fairness Act: Expanding Benefits for Public Servants
The SSFA, signed January 5, 2025, marks a big change in how Social Security handles public employees with pensions. Before this change, the WEP and GPO often reduced or eliminated Social Security benefits for Feds, teachers, and other public sector workers.
With these provisions repealed, more than three million retirees are expected to see an increase in their monthly payments—averaging around $360 per month. While the change is welcome news for many, not all retirees will benefit equally. Your benefit increase varies with your work record, pension plan, and years in Social Security-covered employment.
Retroactive Payments: What Retirees Need to Know
Back payments from 2024 will deliver thousands to qualified retirees under this legislation. Expect significant delays, however. Backlogs at Social Security will push payments to late 2025. Some retirees won't see money until 2026.
If you were counting on this money in 2024, adjust your budget. Keep tabs on SSA news to see how your benefits might change. Talk to your financial advisor about handling expenses until your back payment shows up.
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How Current Workers Could Be Affected
The SSFA primarily benefits retirees, but current federal employees should also keep an eye on evolving rules:
- Earning credits:In 2025, workers must earn $1,810 per credit, and 40 credits are still required to qualify for future benefits.
- Retirement age shifts: The full retirement age (FRA) is 66 years and 10 months for those born in 1959 and 67 for those born in 1960 or later.
- What’s Still Up in the Air: Now that Trump is back in office, there’s talk in Washington about making more changes to Social Security. That could mean updates on how benefits are calculated, who gets taxed, and how much.
The Bigger Picture: Social Security’s Long-Term Stability
The SSFA gives more people access to full benefits, which many see as a long-overdue fix. But it also adds new strain to the system. Some in Congress worry the change could speed up the timeline for when the trust fund runs short.
Some lawmakers suggest the repeal of WEP and GPO could accelerate program insolvency by six months.
To protect long-term viability, policymakers are now reexamining funding strategies — including raising the payroll tax cap, adjusting cost-of-living formulas, and redefining eligibility standards. These proposals may impact younger Feds planning for retirement in the next 10 to 30 years.
What Federal Employees Should Do Now
Retired or working, you need to stay informed.
- Recently retired? Watch SSA updates and be ready for payment delays.
- Still working? Check your Social Security statement, verify your earnings, and know your full retirement age adjustments.
Reach out to the team at Serving Those Who Serve at [email protected] to see how these changes may impact your personal retirement planning.
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
