The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are two Social Security provisions that have significantly impacted public servants and their retirement benefits. Recently, these provisions were repealed by the Social Security Fairness Act, signed into law by President Joe Biden on January 5, 2025[1][2].

What is the Windfall Elimination Provision (WEP)?

The WEP was designed to adjust the Social Security benefits of individuals who also receive a pension from employment not covered by Social Security. This typically affected public sector employees, such as teachers, police officers, and firefighters, who worked in positions where Social Security taxes were not withheld. The WEP aimed to prevent these individuals from receiving disproportionately high Social Security benefits in addition to their public pensions[3].

Under the WEP, Social Security benefits were calculated using a modified formula that reduced the Primary Insurance Amount (PIA) for affected individuals. This reduction could significantly lower the monthly Social Security benefits for those who had substantial earnings from non-covered employment[3].

What is the Government Pension Offset (GPO)?

The GPO affected Social Security spousal or survivor benefits for individuals who received a pension from non-covered employment. Essentially, the GPO reduced the Social Security benefits of a spouse or widow(er) by two-thirds of their government pension. This provision was intended to ensure that the benefits for those with non-covered pensions were comparable to those with covered earnings[2].

For example, if a retired teacher received a monthly pension of $3,000 from a state government job not covered by Social Security, their spousal or survivor benefits would be reduced by $2,000 (two-thirds of $3,000). This often resulted in a significant reduction or complete elimination of Social Security benefits for many public servants[2].

The Repeal of WEP and GPO

The Social Security Fairness Act, which repealed both the WEP and GPO, marks a significant change for millions of retired public servants. The repeal means that these individuals will no longer face reductions in their Social Security benefits due to their public pensions[1][2]. This change is expected to increase Social Security checks by an average of $360 monthly for approximately 2.8 million recipients[4].

The repeal of these provisions has been a long-standing goal for many advocacy groups and public sector unions, who argued that the WEP and GPO unfairly penalized public servants. With the signing of the Social Security Fairness Act, these groups have achieved a significant victory, ensuring fairer treatment for retired public employees.

Moving Forward

The Social Security Administration is currently working on implementing the changes brought about by the Social Security Fairness Act. While SSA has offered vague guidelines for implementation of the new law, public servants who were previously affected by the WEP and GPO can hopefully expect to see adjustments in their Social Security benefits in the coming months[1][2].
References

[1] Social Security Fairness Act: Windfall Elimination Provision (WEP) and ...

[2] Program Explainer: Government Pension Offset - The United States Social ...

[3] Windfall Elimination Provision

[4] Will the Social Security Fairness Act Bankrupt SSA Trust Funds?