Most Americans are familiar with the Social Security Fairness Act, which then-President Joe Biden signed into law on Jan. 5, 2025. This move, in a nutshell, eliminates the reduction of Social Security benefits for those entitled to public pensions from work not covered by Social Security, according to the Social Security Administration website.
The Social Security Fairness Act repeals both the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), meaning public employees who pay into Social Security would receive full benefits upon retirement.
The GPO and WEP impacted primarily teachers, firefighters, and police who did not pay into Social Security while serving in the public sector. As a result, this significantly impacted the specific individuals receiving spousal and widow(er) benefits.
Kentucky Congressman Hal Rogers, Dean of the U.S. House of Representatives, cosponsored and voted for the Social Security Fairness Act. He said the following in a press release issued by his office Jan. 7:
“This new law is a historic win for nearly 3 million American workers who have paid into Social Security, namely retired police officers, firefighters, teachers and postal workers, among others. It adds confidence to their ability to afford retirement and enjoy the life that they worked hard for.”
What does this mean for Kentucky and Ohio?
Social Security & Congressional Research Data reveals that Kentuckians could see an estimated increase in excess of $250 million with over 38,000 people impacted. Wrote University of Southern Indiana’s Dr. Thomas G. Noland, PhD, chair of the accounting and financing department, in a Northern Kentucky Tribune article published Jan. 7, “This is the equivalent of a new factory providing some 3,150 jobs with a pay and benefits package of $80,000 per year.”
In Ohio, over 100,000 teachers, firefighters, and police officers are poised to receive more money, the Columbus Dispatch reported Jan. 6. Like Kentucky and all other states, Ohio public and specific private employees (those who worked in or will work in the private sector) no longer would be subject to certain Social Security distribution reductions.
Summing it up, “People who currently have reductions in their Social Security benefits under the [repealed] exceptions would soon see a boost in their monthly payments … ,” according to ohiohouse.gov, the Ohio House of Representatives official website.
Why were the GPO and WEP in place to begin with?
The WEP is a formula used to adjust Social Security worker benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security–covered earnings. Congress passed the WEP to prevent workers who receive non-covered pensions from receiving higher Social Security benefits as if they were long-time, low-wage earners.
Meanwhile, the Social Security Administration stated the following about the GPO: “If you receive a retirement or disability pension from a federal, state, or local government based on your own work for which you didn’t pay Social Security taxes, your Social Security benefits may be reduced.”
What do I need to do?
Everest Financial Inc. offers informational financial planning workshops throughout the winter and spring, one of which is titled “Social Security or Social INSECURITY?” These seminars will be offered March 20, 2025, at both 11:30 a.m. and 6 p.m., in Cincinnati, OH, and May 6 and May 8, 2025, in Covington, KY.. Click here to register or call Beth Duffey at 859-291-9290.
The SSA recommends individuals check their online account at ssa.gov. It is important to verify that the SSA has your current mailing address and direct deposit information if it has recently changed. Most people can do this online with their personal my Social Security account without calling or visiting Social Security. Visit www.ssa.gov/myaccount to sign in or create your account.
Click here to view a video that explains what my Social Security is.