Some public employees can now collect Social Security and pension payments

First Citizens Wealth INTEL: Insights and News—Taxation, Election & Legislation

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As a result of the Social Security Fairness Act of 2023 that passed into law in January 2025, some police officers, firefighters, teachers and other public workers can now collect both pension and Social Security payments. They may even be entitled to payments backdated to January 2024.

Who is impacted

More than 3 million retired or soon-to-be-retired people are impacted by the Social Security Fairness Act passing into law, including:

• Retired public employees and their spouses or widows who worked in states where government jobs didn't pay Social Security taxes and who have private sector work history; states include California, Colorado, Connecticut, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Missouri, Nevada, Ohio and Texas

• Police officers, firefighters, postal workers, teachers and other public sector employees and their spouses or widows whose government pension replaces Social Security

The Social Security Fairness Act will bring an increase in benefits for these individuals.

Will all public employees see changes to benefits?

No. Most state and local public employees―more than 70 percent―are in Social Security-covered employment. As a result, the Social Security Fairness Act won't increase their benefits.

Why was the Social Security Fairness Act introduced?

Two provisions—the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO, were enacted to prevent dual payments from a government pension and Social Security to retirees who hadn't paid Social Security taxes. But the Social Security Act of 2023 acknowledged that those provisions were complicated and could lead to unfair outcomes.

How much could benefits go up by?

According to the Social Security Administration, or SSA, benefits could increase anywhere from a few dollars to more than $1,000 each month.

Any change to payments will depend on the specific Social Security benefit and the value of the pension involved.

How far back will any changes to benefits apply?

Retroactive benefits became payable from January 2024, when the WEP and GPO ceased to apply.

When will The Social Security Fairness Act start to impact benefits?

• Retroactive payments: The SSA started to pay retroactive benefits from January 2024 onward in February 2025, with most recipients expected to receive them by March 2025.
• Increased monthly benefits: Starting in April 2025, monthly Social Security payments will reflect the elimination of WEP and GPO. More complex cases that need to be processed manually may take more time.

What action is required—and when

If you feel you may be affected, contact the Social Security Administration at 800-772-1213, visit the SSA's Account page, or visit a local office to determine how your benefits may change. If you're eligible for back pay, you may need to file a claim with the SSA.

Who should you talk to now

If you're affected, consult your First Citizens Wealth consultant to reassess income projections based on the expected increase in Social Security benefits. Meanwhile, be sure to review up-to-date information on the Social Security Fairness Act, including how to apply for specific categories of benefit.