On January 5, 2025, President Biden signed into law the Social Security Fairness Act, repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced or eliminated Social Security benefits for some public sector workers and their surviving spouses. The legislation passed in 2024 with bipartisan support in both chambers: the Senate voted 76-20 in December, following a House vote of 327-75 in November.
What Are the WEP and GPO?
The WEP and GPO were introduced to address concerns about “double-dipping” by individuals who received government pensions from jobs not covered by Social Security.
WEP: Reduced Social Security benefits for retirees who also received pensions from non-Social Security-covered public sector jobs. The Congressional Research Service estimated it affected about 2 million beneficiaries.
GPO: Reduced or eliminated Social Security spousal and survivor benefits for individuals receiving a government pension. Approximately 800,000 retirees were affected, according to the Congressional Research Service.
These provisions had been in place since 1977 (GPO) and 1983 (WEP).
What the Repeal Entails
The repeal will eliminate these adjustments to Social Security benefits.
Impacted Beneficiaries: About 3 million current retirees who experienced reduced benefits due to the WEP or GPO will have their benefits recalculated by the Social Security Administration (SSA). The repeal is retroactive through 2024.
Implementation Timeline: The SSA will begin recalculating benefits after the law is enacted. Due to the administrative complexities, SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits.
Future Beneficiaries: Public sector workers in jobs not covered by Social Security will no longer face WEP or GPO reductions when they retire.
Fiscal Considerations
The Congressional Budget Office projects that the repeal will increase federal deficits by $195 billion over the next decade. This cost has raised concerns about Social Security’s financial stability, as the program already faces potential funding challenges in the future.
Some lawmakers and analysts have cautioned that the additional fiscal strain could accelerate Social Security’s projected insolvency or necessitate adjustments to benefits or revenue sources to maintain the program’s solvency.
What’s Next for Beneficiaries?
Affected retirees should monitor updates from the SSA as the recalculation process begins. While the process may take time, retirees who had their benefits reduced or eliminated under WEP and GPO may see adjustments to their payments once the recalculations are complete.