Learn About the Social Security Fairness Act and SSDI

What Is the Social Security Fairness Act?

The Social Security Fairness Act is a federal law that changes how Social Security benefits are calculated for certain people who also receive pensions from government jobs. To understand this law, it helps to know that Social Security has two rules that reduce benefits: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). These rules have been in place for decades and affect millions of Americans.

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The GPO primarily impacts spouses, widows, and widowers who earned a government pension. Before the Social Security Fairness Act, if you received a pension from work where you did not pay Social Security taxes—such as certain state or local government jobs—your spousal or survivor benefits from Social Security could be reduced by two-thirds of your government pension amount. For example, if you received a $1,500 monthly government pension, your Social Security spousal benefit could be reduced by approximately $1,000, leaving you with very little additional income from Social Security.

The WEP works differently but affects a similar group of people. It reduces the Social Security benefits of workers who also receive government pensions from jobs where they did not contribute to Social Security. The reduction can be significant for people who worked for many years in positions that did not require Social Security contributions.

The Social Security Fairness Act repeals both of these rules entirely, beginning in 2024. This means that people affected by the GPO and WEP will no longer see their benefits reduced because of their government pensions. According to estimates from the Social Security Administration and Congressional Budget Office, this change could affect approximately 2.8 million Americans who currently receive both government pensions and Social Security benefits.

Practical Takeaway: The Social Security Fairness Act removes two long-standing rules that reduced benefits for people with government pensions. Learning what these rules are helps you understand how your own benefits might be affected and what changes to expect in your payments.

Understanding SSDI: Social Security Disability Insurance Basics

Social Security Disability Insurance (SSDI) is a program that provides monthly payments to people who have disabilities that prevent them from working. Unlike Supplemental Security Income (SSI), which is based on financial need, SSDI is based on work history and contributions to the Social Security system through payroll taxes. Understanding SSDI is important because it is separate from retirement benefits and operates under different rules.

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SSDI payments go to workers who become disabled before retirement age, as well as to their spouses and children in certain circumstances. The amount of the monthly payment depends on the worker's earnings record and how much they contributed to Social Security over their working years. In 2024, the average SSDI benefit for a disabled worker is approximately $1,550 per month, though individual amounts vary widely based on work history.

To receive SSDI, a person must have a medical condition that is expected to last at least 12 months or result in death, and the condition must prevent substantial work activity. The Social Security Administration maintains a "Blue Book" that lists medical conditions that automatically meet the criteria for disability. However, the agency also considers other conditions on a case-by-case basis. People who have worked and paid into Social Security for a certain period may be found disabled even if their condition is not on the official list.

A key feature of SSDI is the connection to work history. A person must have accumulated enough "work credits" by working in jobs covered by Social Security. Most people need 40 credits total, with 20 of those credits earned in the 10 years before becoming disabled. Younger workers may need fewer credits. This requirement distinguishes SSDI from other disability programs and ties it directly to Social Security contributions.

Family members can also receive payments based on a disabled worker's record. A spouse who is caring for the disabled worker's child under age 16 can receive up to 75% of the worker's benefit amount. Children of the disabled worker can receive benefits until age 19 if they are in high school full-time, or until age 18 if they are not in school. These family benefits are important protections that extend the program's reach beyond the disabled worker alone.

Practical Takeaway: SSDI is a work-based disability program that provides income for disabled workers and their families. Knowing how SSDI differs from other Social Security programs and what medical and work requirements exist helps you understand what information to prepare when learning more about the program.

How the Social Security Fairness Act Affects SSDI Recipients

The Social Security Fairness Act's main impact is on benefits for spouses, survivors, and people receiving retirement benefits—but SSDI recipients in certain situations may also be affected. The distinction is important: most SSDI workers themselves are not impacted by the GPO or WEP rules because these provisions primarily target people who have both a government pension and Social Security benefits. However, disabled workers who also receive government pensions can be affected by the WEP.

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Consider a scenario where a person became disabled at age 45 after working in a state government job that did not contribute to Social Security. That person may have earned a disability pension from their state employer. At age 62 or later, if they also become entitled to Social Security benefits based on their own work record from other employment, their Social Security benefit could be reduced by the WEP. With the repeal of the WEP under the Social Security Fairness Act, this person's benefit reduction disappears.

Another important consideration involves SSDI beneficiaries who have family members receiving benefits on their record. If an SSDI worker's spouse has a government pension, that spouse's spousal benefit has likely been reduced by the GPO. When the GPO is repealed, these family members will see increases in their benefits. This can significantly impact household income for families where one member is disabled and receiving SSDI.

Additionally, some SSDI recipients transition to retirement benefits at full retirement age. When this transition occurs, they may become subject to the WEP or GPO if they have government pension income. The repeal of these provisions means that people in this situation will no longer face benefit reductions. This is particularly relevant for people who spent part of their career in Social Security-covered work and part in government employment.

The Social Security Administration has stated that SSDI recipients should not experience changes to their current benefit amounts solely because of the Social Security Fairness Act. However, some SSDI recipients with specific circumstances—such as those who also receive government pensions or have dependents with government pensions—may see changes. Reviewing your own situation against the criteria for GPO and WEP helps clarify whether you might be affected.

Practical Takeaway: While most SSDI recipients are not directly impacted by the Social Security Fairness Act, those with government pension income or those with family members receiving spousal or survivor benefits should review their situation. Understanding which rules apply to you requires looking at both your work history and any government pension income in your household.

Comparing Government Pensions and Social Security Benefits

Understanding the difference between government pensions and Social Security benefits is central to understanding the Social Security Fairness Act. Many government employees—especially teachers, police officers, firefighters, and other public sector workers—participate in pension systems instead of, or in addition to, Social Security. These pension systems are separate programs funded through different mechanisms than Social Security.

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A government pension is typically based on years of service and final salary. For example, a teacher who worked 30 years and earned an average final salary of $60,000 might receive a pension calculation such as 2% times years of service times final salary, resulting in a pension of $36,000 annually ($60,000 × 0.02 × 30). This pension is paid by the government employer and is not connected to Social Security contributions. In many cases, government employees pay into their pension system but do not pay Social Security payroll taxes.

Social Security benefits, by contrast, are based on the worker's average earnings over their entire career in jobs where they paid Social Security taxes. The amount is calculated using a formula that replaces roughly 40% of pre-retirement earnings for an average worker. The more someone earned (up to the maximum taxable earnings cap), the higher their benefit. In 2024, the average Social Security retirement benefit is approximately $1,907 per month.

The conflict addressed by the Social Security Fairness Act arose because the Social Security system was designed with the assumption that all workers would contribute throughout their careers. When workers had breaks in Social Security contributions—such