How FM Global Employees Can Benefit from the New Social Security Fairness Act

'With the passage of the Social Security Fairness Act, FM Global employees may experience an increase in financial resources as provisions like the Windfall Elimination Provision and the Government Pension Offset are eliminated, providing greater access to Social Security benefits—an important update for those navigating retirement planning.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'FM Global employees should take note of the Social Security Fairness Act’s impact, as the elimination of the Windfall Elimination Provision and Government Pension Offset can provide significant financial relief, particularly for those with non-covered pensions, highlighting the importance of adjusting retirement strategies in light of these changes.' – Kevin Landis, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. The key changes introduced by the Social Security Fairness Act, including the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

2. The impact on public employees and FM Global workers, highlighting how these changes affect pension and Social Security benefits.

3. Potential financial and policy implications, including concerns about Social Security fund sustainability and effects on Medicare premiums.

Major legislative changes recently may alter the outlook for many Americans, including those at FM Global companies. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) were repealed with the signing of the Social Security Fairness Act on January 5 by former President Joe Biden. These regulations were originally intended to adjust benefits for people receiving public pensions with Social Security entitlements.

The Windfall Elimination Provision particularly affected Social Security retirement benefits for those who also received pension benefits from jobs not subject to Social Security taxes. Meanwhile, the Government Pension Offset restricted spousal Social Security benefits for people with public pensions from non-Social Security tax-paying jobs.

The elimination of these provisions, reported by the Social Security Administration, will affect about 3.2 million people.

For FM Global companies and other eligible Americans, it could mean increased payments each month — up to USD 1,190, estimates the Congressional Budget Office.

Former Social Security Administration employee and retirement planning consultant Kurt Czarnowski said the rules were designed to create a balance between Social Security recipients and public sector workers without pensions. While reductions under WEP occurred, at least some benefit was provided to those affected. Some could lose all spousal benefit entitlements under GPO.

The impacts will be greatest for public educators and could similarly affect employees of FM Global companies. Many educators, for example, may have contributed to Social Security through part-time jobs or summer jobs but saw their benefits cut because their primary income was from teacher pensions. Czarnowski said previous regulations disadvantaged people who helped create both systems.

But some worry that doubling benefits for millions will accelerate Social Security's dwindling pot. Current projections show the Social Security Administration can pay full benefits through 2035, minus any potential financial impact of the Social Security Fairness Act.

Public employees like teachers, firefighters, and police officers are also eligible for increased payments if they receive a pension for work not covered by Social Security. Once eligible, those beneficiaries might get a retroactive lump sum from January 2024 plus increased Social Security income.

Public workers with pensions not covered by Social Security whose spouses contributed to Social Security now can get spousal benefits. This includes possibly getting 100% of a deceased spouse's benefits or 50% at qualifying age, which may be a financial help to some.

As many beneficiaries will receive their lump sum payments by the end of March and increased monthly benefits beginning in April, the SSA said it would expedite the changes in cases that do not require manual processing.

SSA also has measures in place for people who opted out because of the impact of WEP or GPO, or who become eligible for retirement benefits, to ensure they receive accurate payment upon application. It also has information and updates on the Social Security Fairness Act.

Conclusion: while Windfall Elimination Provision and Government Pension Offset repeal provide some financial relief for many, questions remain about the long-term viability of the Social Security fund. Beneficiaries should follow up on those changes and consider them in retirement planning, including employees of FM Global companies.

In addition, the new Social Security Fairness Act affects Medicare premiums. As Social Security benefits increase under the Act, some retirees may see changes in Medicare Part B premiums — deducted from Social Security payments — that are income-related. Considering this possible financial impact when planning for retirement healthcare is important, according to a March 2024 report by the Centers for Medicare and Medicaid Services.

This legislation, like changing a dam that diverted water from a river, lets resources flow more fairly, allowing Social Security benefits to public employees like teachers and firefighters. This adjustment corrects historical inequalities so people contributing from different job sources receive benefits corresponding to their contributions.

The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) repeals under the Social Security Fairness Act affect many retirees, particularly those with non-covered pensions. Five sources explain these changes.

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Sources:

1. Social Security Administration (SSA).  'Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).'  Social Security Administration , 27 Feb. 2025,  www.ssa.gov . Accessed 15 Apr. 2025.

2. Thrivent Financial.  'Social Security Fairness Act: How the WEP & GPO Repeal May Affect Your Benefits.'  Thrivent , 27 Feb. 2025,  www.thrivent.com . Accessed 15 Apr. 2025.

3. Li, Zhe.  'The Social Security Fairness Act of 2023.'  Congressional Research Service , Feb. 2025, crsreports.congress.gov. Accessed 15 Apr. 2025.

4. International Association of Fire Fighters (IAFF).  'Q&A: How Will the Social Security Fairness Act Impact Me?'  IAFF , 24 Jan. 2025, iaff.org. Accessed 15 Apr. 2025.

5. Horace Mann.  'Social Security Fairness Act FAQ.'  Horace Mann , Feb. 2025, horacemann.com. Accessed 15 Apr. 2025.