Social Security Fairness Act

February 18, 2025
Circular Letter: 200-013-25
Topic: Announcements

To: All CalPERS Employers

Purpose

The purpose of this Circular Letter is to inform you of the Social Security Fairness Act enacted into law on January 5, 2025, eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Background

Prior to the Social Security Fairness Act, Social Security benefits varied based on whether Social Security taxes were withheld by employers. Individuals in non-covered positions, such as teachers and safety personnel, did not have these taxes withheld, leading to benefit reductions under the WEP and GPO.

Changes in Law

On January 5, 2025, the Social Security Fairness Act (HR 82) addressing the WEP and GPO was signed into law by President Biden. This act removes the reduction in Social Security benefits for those receiving pensions from employment where Social Security taxes were not withheld.

Impact on Members

This impacts some CalPERS retirees, specifically retirees who were covered by pensions who primarily worked in non-covered positions for public agencies and safety classifications for the State of California. Individuals who did not receive their full Social Security benefits, due to the WEP or GPO, may include but are not exclusive to:

  • Peace officers
  • Firefighters
  • State patrol
  • State safety personnel

If individuals have always paid into both a pension and Social Security, they may not see any impact to their Social Security benefits.

The Act does not impact CalPERS pensions, only an individual’s Social Security benefits.

Note: The Act removes the WEP and GPO reductions only.

Next Steps

The Social Security Administration (SSA) is working on implementing this change. Here’s what members can do:

  • Monitor Updates: Check the Social Security website and my Social Security account for updates.
  • Understand the Impact: Changes will be retroactive to January 1, 2024. The Act only affects a member’s Social Security benefits; it has no impact on a member’s CalPERS pension.

Additional Resources

For further assistance:

  • SSA helps with retirement benefits, benefit estimates, and Medicare enrollment.
  • State Social Security Administrator offers employer guidance, Section 218 Agreement issues, and Social Security and Medicare education webinars.

Questions

Members can contact the SSA for questions about their Social Security benefits or find their local office. 

Visit Social Security & Your CalPERS pension for more details. 

If you have questions regarding CalPERS, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

Melody Benavides, Chief
Pension Contracts & Prefunding Programs