THE SOCIAL SECURITY FAIRNESS ACT REPRESENTS one of the most significant potential reforms to retirement benefits for certain public sector employees in decades. If you’re a teacher, firefighter, police officer, or other government employee affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO), this legislation could have substantial implications for your retirement income.
Background on WEP and GPO For decades, government employees who earned pensions from jobs not covered by Social Security but who also qualified for Social Security benefits through other employment have faced reductions to their Social Security payments. The Windfall Elimination Provision (WEP) reduces Social Security benefits for individuals who receive government pensions, while the Government Pension Offset (GPO) can reduce or eliminate spousal or survivor benefits for government pensioners.1
These provisions, implemented in the 1980s, were intended to prevent “double-dipping” but have long been criticized as unfair penalties that disproportionately affect public servants.2
What the Social Security Fairness Act would do The Social Security Fairness Act aims to repeal both the WEP and GPO provisions entirely. If passed, the legislation would:
• Restore full Social Security benefits to government employees who have had their benefits reduced by the WEP
• Allow spouses and widows/ widowers of government employees to receive their full spousal and survivor benefits without GPO reductions
• Apply retroactively to current retirees already experiencing benefit reductions.3
Who will benefit
• Public school teachers in non Social Security states
• State and local government employees
• Federal employees hired before 1984
• Police officers and firefighters in certain jurisdictions
• Spouses and survivors of these workers.4
Approximately 2.5 million retirees are currently affected by either the WEP or GPO, and this number continues to grow as more public employees retire.5
Financial implications
For affected individuals, the repeal could mean substantial increases in retirement income. For example:
• Teachers with government pensions could see their Social Security benefits increase by up to $498 per month.
• Surviving spouses currently receiving zero Social Security survivor benefits due to GPO could begin receiving full benefits, often exceeding $1,200 monthly.6
However, the legislation faces significant hurdles related to funding. Estimates suggest full repeal would cost approximately $150 billion over ten years, raising questions about Social Security’s long-term solvency.7
What you should do
If you might be affected by WEP or GPO:
• Calculate your potential benefit changes by requesting a personalized statement from the Social Security Administration to see exactly how WEP or GPO affects your benefits.
• Consider how potential repeal might affect your retirement timeline and budget, including whether it might allow you to retire earlier or provide additional financial security.
• Document your work history thoroughly, especially periods of employment that were covered by Social Security versus those covered by a government pension.
• Call Citizen Advisory Group at 419-872-0204 to set up a complimentary consultation to review your individual situation.
Citizen Advisory Group is a comprehensive financial services firm that helps Northwest Ohio and Southeast Michigan’s soon-to-be-retired and retired residents effectively plan for and prepare for life’s greatest journey. In addition to helping clients with their finances, Citizen Advisory Group offers monthly health and wellness events.
Investment advisory and financial planning services offered through Advisory Alpha, LLC, a Registered Investment Advisor. Insurance, Consulting, and Education services offered through Citizen Advisory Group. Citizen Advisory Group is a separate and unaffiliated entity from Advisory Alpha. This article is not endorsed or approved by the Social Security Office or any other Government Agency. ✲
Sources: 1. Social Security Administration. (2024). “Windfall Elimination Provision.” https://www.ssa.gov/pubs/EN05-10045.pdf 2. Congressional Research Service. (2023). “Social Security: The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).” https:// crsreports.congress.gov/ 3. H.R. 82 - Social Security Fairness Act of 2023-2024.
Congress.gov. https://www.congress.gov/ 4. National Education Association. (2024). “Eliminating the Unfair GPO and WEP Social Security Penalties.” https://www.nea.org/ 5. Government Accountability Office. (2023). “Social Security: Information on Government Pension Offset and Related Public Pension Issues.” https://www.gao. gov/ 6. National Active and Retired Federal Employees Association. (2024). “NARFE’s WEP/GPO Repeal Issue Brief.” https://www.narfe.org/ 7. Social Security Advisory Board. (2023). “The Windfall Elimination Provision: It’s Time to Correct the Math.” https://www.ssab.gov/
