Windfall Elimination Provision and the Govt Pension Offset

Update 1/22/2025

January 2025 President Biden signed into law the Social Security Fairness Act. This legislation repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced or eliminated Social Security benefits for certain government retirees. The WEP had reduced Social Security payments for individuals who received an annuity from their time working in government but also worked in a Social Security-covered job. Does this law apply to you?  We have contacted Rep Rob Wittman’s office to get clarification. At this time there is considerable confusion as to whom the law applies.  Social Security Administration is preparing guidance on how this law is to be implemented.

Some helpful background below courtesy of SSA. However, SSA is still working out implementation, and there are caveats and exceptions to everything below. Topline – if your benefits have been impacted by WEP/GPO, then they will be eligible for relief under the Social Security Fairness Act. If they were exempted, as explained below, then they never had reductions in their benefits due to WEP/GPO and won’t be affected by the new law.

 WEP

When your benefits can be affected – The following provisions can affect you if both are true:

• You earn a retirement or disability pension from an employer who didn’t withhold Social Security taxes.
• You may be eligible for Social Security retirement or disability benefits from work in other jobs for which you did pay taxes.

The WEP can apply if one of the following is true:

• • You reached age 62 after 1985.
  • You developed a qualifying disability after 1985.

Some exceptions – The WEP doesn’t apply if:

• • You’re a federal worker first hired after December 31, 1983.
  • You’re an employee of a non-profit organization which was exempt from Social Security coverage on December 31,1983. This does not apply if the non-profit organization waived exemption and did pay Social Security taxes, but then the waiver was terminated prior to December 31, 1983.
  • Your only pension is for railroad employment.
  • The only work you performed for which you didn’t pay Social Security taxes was before 1957.
  • You have 30 or more years of substantial earnings under Social Security.

GPO

If you receive a retirement or disability pension from a federal, state, or local government based on your own work for which you didn’t pay Social Security taxes, your Social Security benefits may be reduced. You may not receive any payment at all.

When won’t my Social Security benefits be reduced? – Generally, we won’t reduce your Social Security benefits as a spouse or surviving spouse if you:

• • Receive a government pension that’s not based on your earnings.
  • Are a federal (including Civil Service Offset), state, or local government employee and your pension is from a job for which you paid Social Security taxes. One of the following may apply:
  • Your last day of employment (that your pension is based on) is before July 1, 2004.
  • You filed for and were entitled to spouse’s or surviving spouse’s benefits before April 1, 2004. (Note: You may work your last day in Social Security covered employment at any time.)
  • You paid Social Security taxes on your earnings during the last 60 months of government service. (Note: Under certain conditions, we require fewer than 60 months for people whose last day of employment falls after June 30, 2004, and before March 2, 2009. We reduce the work covered by Social Security by the number of months the worker was in government service under the same retirement system on or before March 2, 2004. The months do not have to be consecutive. Any remaining months needed to fulfill the 60 months requirement must be worked after March 2, 2004.)

There are other situations for which we won’t reduce your Social Security benefits as a spouse or surviving spouse. For example, if you:

• • Are a federal employee who switched from the Civil Service Retirement System (CSRS) to the Federal Employees’ Retirement System (FERS) after December 31, 1987, and:
  • Your last day of service (that your pension is based on) is before July 1, 2004.
  • You paid Social Security taxes on your earnings for 60 months or more during the period beginning January 1988 and ending with the first month of entitlement to benefits.
  • You filed for and were entitled to spouse’s or surviving spouse’s benefits before April 1, 2004. (Note: You may work your last day in Social Security covered employment at any time).
  • Received, or were eligible to receive, a government pension before December 1982 and met all the requirements for Social Security spouse’s benefits in effect in January 1977.
  • Received, or were eligible to receive, a federal, state, or local government pension before July 1, 1983, and received one-half support from your spouse.

Andrew Maloney

Legislative Assistant | Rep. Rob Wittman (VA-01)

| 2022-225-4261