The repeal of WEP and GPO will boost Social Security benefits for many retirees.
Washington: On January 5, President Biden signed the Social Security Fairness Act, which repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This change is retroactive to January 2024.
These provisions affected folks who got pensions from jobs that didn’t pay into Social Security but also worked for at least ten years in jobs that did. It was a bit of a mess for many retirees.
WEP mainly hit public sector workers like police and firefighters. When they worked under Social Security, their benefits were based on their highest-paid 35 years. But for the years they worked without paying into Social Security, those earnings counted as zero. This meant their Social Security benefits were way lower compared to others who only worked under Social Security.
And it didn’t just affect them; it also impacted their spouses. If a worker had a lower Social Security benefit, their spouse’s benefits were lower too. But now, thanks to the new law, both workers and their spouses can expect higher benefits.
Then there’s GPO, which hit spousal and survivor benefits for those with pensions from non-Social Security jobs. It used to cut these benefits by two-thirds of the pension amount. So, if someone had a $1,500 pension, their spousal benefit could drop by $1,000, leaving them with just $200 for survivor benefits. That’s a tough pill to swallow. But with the repeal, that two-thirds reduction is gone.
According to the Congressional Research Service, about 3% of Social Security recipients were affected by WEP, which is around 2.1 million people. By December 2025, they expect monthly payments to rise by about $360, and by 2033, that could go up to $460. For GPO, around 745,679 recipients were impacted, with spousal benefits expected to increase by $700 by 2025 and $800 by 2033.
The law also states that these increases will be retroactive to January 2024. However, it seems there won’t be any back payments for benefits lost before that date.
Right now, the Social Security Administration hasn’t rolled out a plan for how this will all work. If you’ve already filed for benefits and they have your info, you don’t need to do anything just yet. But once they announce their plan, it’s a good idea to check in with them, either by phone or in person, to make sure they have your current details.
Feel free to reach out with any questions or comments!
