What happened

The Social Security Fairness Act was signed into law in January 2025, repealing two provisions that had reduced Social Security benefits for millions of public sector workers for more than four decades:

• The Windfall Elimination Provision (WEP): reduced Social Security benefits for workers who also received a pension from a job not covered by Social Security — including many teachers, state and local government employees, and federal employees hired before 1984
• The Government Pension Offset (GPO): reduced or eliminated spousal and survivor Social Security benefits for those receiving a government pension from non-covered employment

The repeal is retroactive to January 1, 2024. This means that qualifying retirees are entitled to both increased monthly benefits going forward and retroactive payments for the period since January 2024 when WEP and GPO were still reducing their checks.

Who this affects in South Jersey

This change is directly relevant to many South Jersey families, including:

• Public school teachers and administrators in Burlington County, Camden County, and surrounding districts who receive NJ TPAF (Teachers’ Pension and Annuity Fund) pension income
• State, county, and municipal employees receiving PERS (Public Employees’ Retirement System) or other NJ government pensions
• Firefighters, police officers, and first responders with public pension income
• Spouses and survivors of any of the above, whose own Social Security or survivor benefits may have been reduced under GPO

If you or your spouse worked in a public sector job in New Jersey and also paid into Social Security through other employment, it is worth contacting SSA to determine whether your benefit was affected and whether you are entitled to additional payments.

How much could be at stake

The increase in monthly benefit varies depending on the individual’s earnings history and pension amount. Some retirees are seeing modest increases; others have seen significant ones. The retroactive payment for the period from January 2024 through the date of adjustment can amount to several thousand dollars as a lump sum.

The Social Security Administration has been processing these adjustments, but the volume is large and some recipients have experienced delays. If you have not seen a change in your benefit amount and believe you qualify, contact SSA directly or speak with an advisor who can help you verify your status.

The planning implications beyond the benefit increase

The increase in Social Security income may have effects beyond the benefit itself:

• Higher Social Security income may push more of your benefit into the taxable range under the federal combined income rules
• The additional income may affect your IRMAA Medicare premium tier for 2026 and 2027, since IRMAA is based on income from two years prior
• For surviving spouses who previously received a reduced or eliminated survivor benefit under GPO, the restored benefit may meaningfully change your retirement income picture

These interactions are exactly the kind of multi-variable planning question the WealthCare Process is designed to address.

The WealthCare perspective

At Family Wealth Management, we have been reaching out to clients we believe may be affected by this change. If you were not aware of the WEP or GPO repeal, or if you are not certain whether your benefits have been correctly updated, please contact us. We can review your Social Security statement, identify whether an adjustment is due, and model how the change affects your retirement income plan.

What to do next

Call (856) 988-7722 or visit familywealthadvisory.com. If you are a teacher, public employee, first responder, or the spouse of one, this conversation could meaningfully change your retirement income picture.