- What is the Social Security Fairness Act?
The Social Security Fairness Act, was signed into law on January 5, 2025. The law ends two statutory reductions for railroad retirees, their spouses, and survivors who are receiving public pensions from work not covered by social security. In cases where the reductions applied, the U.S. Railroad Retirement Board (RRB) reduced the tier I amount of the individual’s railroad retirement annuity, which is a social security equivalent benefit, due to receipt of such a pension.
The two repealed provisions are known as the non-covered service pension (NCSP) reduction, which affected railroad employees, and the public service pension (PSP) offset, which applied to spouses, divorced spouses, and widows/widowers. In the new law, these reductions are known as the windfall elimination provision (WEP) and the government pension offset (GPO).
The NCSP reduction and PSP offset, enacted in 1983 and 1977 respectively, were intended to equalize social security benefit formulas for workers, their spouses, and widower(er)s with similar earnings histories regardless of whether social security taxes were paid on those earnings. The NCSP reduction reduced the individual’s primary insurance amount (PIA), which is calculated based on the individual’s lifetime earnings and determines the monthly tier I annuity amount. The PSP offset reduced the tier I annuity for spouses or widow(er)s by two-thirds of the gross public pension amount payable to the spouse or widow(er).
- What does this mean?
The repeal of these provisions means that individuals who were previously affected by these reductions will retroactively have their full tier I amount restored for months after December 2023, the effective date of the repeal, and for future monthly benefit payments.
It should be noted that the Social Security Fairness Act does not impact any of the existing laws requiring offset of railroad retirement annuities for any social security benefit, public disability benefit, or workers’ compensation received. As a result, if an annuitant is receiving both an RRB and social security benefit, the tier I amount will continue to be offset by the social security benefit.
- Am I eligible for payment of retroactive benefits?
The repeal of these provisions means that individuals who were previously affected by these reductions will retroactively have their full tier I amount restored for months after December 2023, the effective date of the repeal, and for future monthly benefit payments.
Individuals who were affected by the NCSP reduction are those with less than 30 years of coverage and who also receive a public service pension for work not covered by social security. This commonly includes teachers, police officers, and other local government employees, as well as some federal employees hired before December 31, 1983, the effective date of the NCSP reduction. Military service pensions, payments by the Department of Veterans Affairs, and certain benefits payable by a foreign government covered by a totalization agreement with the United States did not trigger a NCSP reduction, and individuals who receive these types of payments will not see any change to their benefits as a result of the repeal.
- I am eligible, what do I need to do?
No action is required by those affected by this law unless they have moved or changed banking information, in which case they can report the new information by calling the RRB’s toll-free number at (877) 772-5772.
- UPDATED When can I expect payment?
The calculation and issuance of any retroactive payments, in addition to the processing of new railroad retirement annuity applications, is nearly complete. The RRB has 2 cases which still require action to implement the SSFA. The remaining cases represent circumstances in which we were unable to apply computer programming, and our examiners must complete a more in-depth review. As many of these cases require special processing actions, such as the identification of survivor beneficiaries, they require additional time and attention. Please continue to monitor this FAQ page for more news on the agency’s progress in implementing the SSFA and related updates and information.
- How much will I receive?
The repeal of these provisions means that individuals who were previously affected by these reductions will retroactively have their full tier I amount restored for months after December 2023, the effective date of the repeal, and for future monthly benefit payments.
- My railroad retirement annuity is reduced for my entitlement to a social security benefit. Does the SSFA remove the social security benefit reduction applied to my annuity?
No. The SSFA does not change any of the existing laws that require the reduction of a railroad retirement annuity due to the receipt of any social security benefit. Consequently, if an annuitant is receiving both a railroad retirement annuity and a social security benefit, the railroad retirement tier I component will continue to be offset by the amount of the social security benefit each month. In addition, the SSFA does not remove the reduction applied to the railroad retirement annuities of persons who also receive workers’ compensation or a public disability benefit.
- How will I be able to identify my retroactive payment once it has been made?
Once retroactive payments are issued, you may receive a one-time lump sum payment in addition to your monthly benefit payment. An explanation letter may be sent informing you of the retroactive payment.
- I have opted in for Voluntary Tax Withholding. How will this impact my payment?
Payment(s) will be reduced by the Voluntary Tax Withholding on file. If you would like to make changes to your Voluntary Tax Withholding, please contact the RRB at 1-877-772-5772, or write to your local field office.
- I have an active garnishment order. How will this impact my payment?
Payment(s) will be reduced by the active garnishment order on file. If there have been any changes to your garnishment order, please contact the RRB at 1-877-772-5772, or write to your local field office.
- Will I have to file an amended tax return?
No. Forms 1099 and W-2 reports issued for tax year 2025 in January 2026 will reflect retroactive payment(s) of RRA benefits.