For years, the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) shaped the Social Security landscape, reducing benefits for millions of retirees with government pensions. With the passage of the Social Security Fairness Act of 2023, H.R. 82 — which President Joe Biden signed into law on Jan. 5, 2025 — the two long-standing laws have been repealed and Social Security rules have shifted significantly, bringing relief and new considerations for affected workers.
This legislative change is particularly beneficial for public-sector employees, including teachers, police officers and firefighters, who have advocated repealing these provisions to receive full Social Security benefits. In addition, those affected by WEP/GPO are entitled to back payments for benefits they would have received during 2024.
Read on to understand how the recent repeal of WEP and GPO might impact your Social Security benefits.
Key provisions of the new rules:
- Repeal of WEP: The WEP reduced Social Security benefits for individuals who also received a pension from employment not covered by Social Security, such as certain federal, state or local government jobs. Repealing WEP allows these individuals to receive their full Social Security benefits.
- Repeal of GPO: The GPO reduced Social Security spousal or survivor benefits for individuals who received a government pension from non-Social Security-covered employment. Eliminating this provision enables affected spouses, widows and widowers to receive full Social Security benefits.
Let’s explore the impact of these changes, incorporating lessons from the past and looking ahead to the opportunities for those who once faced reduced benefits.
What were WEP and GPO?
The WEP was introduced to address an unintended “windfall” in the Social Security benefit formula, ensuring that workers with pensions from non-Social Security-covered employment weren’t overcompensated. Similarly, the GPO reduced spousal or survivor benefits by two-thirds of a recipient’s government pension to align benefits more equitably.
Why were they repealed?
Critics of WEP and GPO long argued that these provisions disproportionately penalized public servants, such as teachers, firefighters and police officers. By tying benefit reductions to government pensions, these rules often left retirees with financial insecurity despite years of public service.
Congress recognized these inequities, and recent legislative changes repealed both provisions. The repeal reflects a broader commitment to simplifying Social Security rules and ensuring fairness for all workers, regardless of their employment sector.
How do the new rules work?
With WEP and GPO repealed, retirees receiving government pensions will now be fully eligible for Social Security benefits based on their own earnings or their spouse’s earnings record, without reductions.
Key changes include:
- Full benefit calculation: Social Security benefits will now follow the standard formula for all workers, using the highest 35 years of indexed earnings.
- Restoration of spousal and survivor benefits: Spouses and surviving spouses with government pensions can claim their full Social Security benefit amounts without a two-thirds reduction.
Impacts on Retirees
The repeal is a game-changer for many retirees:
- Higher monthly benefits: Retirees previously subject to WEP or GPO will see significant increases in their Social Security payments.
- Improved financial security: Public servants, especially those with modest pensions, will benefit from more predictable and equitable retirement income.
- More straightforward retirement planning: Removing these provisions eliminates the complex calculations that often frustrate retirees.
Case studies: Before and after the repeal.
Let’s look at two examples to see how repealing the old changes the landscape:
In the first example, let’s say that under the old rules, Molly, a state government worker with a pension, faced a WEP reduction that decreased her monthly Social Security benefit from $1,793.92 to $1,281.92. Now, with the repeal, Molly will receive the full $1,793.92.
Let’s use Maria as another example. Maria, a state government retiree, previously received no spousal benefit from her husband David’s Social Security due to the GPO. Following the repeal, Maria can now claim the full $1,300 spousal benefit, dramatically improving her financial outlook.
Next steps for retirees.
If you were previously impacted by WEP or GPO, here’s what you can do:
- Visit the Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update See note 1 page for the most current guidance.
- If you did not previously file because your benefits would have been eliminated due to WEP or GPO, review your record and consider filing.
- Revisit benefits from an ex-spouse or deceased spouse to see how this may affect you.
- Delay filing for Social Security benefits until full retirement age, or FRA, which is age 67 for those born in 1960 or later, or up to age 70 to maximize your income potential. You may be able to bridge the retirement income gap while you delay claiming Social Security by using a USAA annuity.
- Periodically review your Social Security record, See note 1 even if you haven’t started receiving benefits: Ensure your benefit calculations reflect the new rules.
If you’re affected by these changes, review your financial situation to account for potentially higher Social Security benefits.