State Social Security unit explains eligibility, benefit math and the Social Security Fairness Act
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Summary
A state Social Security administrator unit representative reviewed how Social Security eligibility and benefit amounts are determined, provided 2025 numeric thresholds for credits and bend points, and said the Social Security Fairness Act (signed 01/05/2025) repeals WEP and GPO but SSA is still implementing the changes.
Pascal Johanning of the State Social Security administrator unit at CalPERS walked attendees through Social Security eligibility, benefit calculations and recent federal changes that may increase benefits for some public employees.
Johanning explained there are two ways to qualify: through your own work record (earning Social Security credits) or through a spouse's work record. "In 2025, you earn 1 credit for every $1,810 in wages, up to a maximum of 4 credits per year," he said, and noted 40 credits — typically about 10 years of work — are generally required for eligibility.
He summarized how the Social Security Administration determines benefits: lifetime earnings are indexed and the highest 35 years are averaged to produce an average indexed monthly earnings (AIME); for 2025 the bend points used in the formula are $1,174 and $7,078, yielding 90%, 32% and 15% bands applied to AIME to compute the primary insurance amount at full retirement age. Johanning also reviewed full retirement age (FRA) rules by birth cohorts, early claiming penalties, and the roughly 8% per year increase for delaying benefits up to age 70.
On earnings while collecting benefits, Johanning cited 2025 limits and offsets (for those below FRA the annual limit is $23,400; in the year you reach FRA the limit is $62,160) and noted that after FRA there are no earnings limits. He stressed that continued work can increase a benefit if higher earnings are reported and re‑calculated.
Johanning introduced the Social Security Fairness Act and its implications: "The law that repeals the windfall elimination provision and the government pension offset was signed on 01/05/2025," he said, and added the law is retroactive to benefits payable starting in January 2024. He cautioned implementation timelines are uncertain: the Federal Social Security Administration is developing procedures and automation for the new calculations, which means individuals affected should watch SSA guidance and consider creating a my Social Security account to monitor changes.
Johanning closed with practical advice on using SSA online tools and filing for benefits (online, phone appointment, or scheduled in‑office appointment) and gave SSA contact guidance for local appointments.
