How a Government Pension Could Have Offset Your Social Security

Under longstanding Social Security rules, certain public-sector workers and retirees received smaller benefits due to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These rules, intended to adjust Social Security benefits for retirees with government pensions from non-covered jobs, often led to lower or entirely withheld payments for millions. That changed in early 2025, when the Social Security Fairness Act became law. With both WEP and GPO repealed, affected retirees will now receive higher monthly payments, along with retroactive benefits dating back to January 2024.

Do you need help planning for retirement? Speak with a financial advisor who serves your area today.

Windfall Elimination Provision and Its Impact on Social Security

Before its repeal, the WEP affected individuals who qualified for Social Security benefits but also received a pension from a job where they didn’t pay Social Security taxes. The WEP reduced the Social Security retirement or disability benefits for these individuals, modifying the standard benefit calculation to account for their government pension income.

This provision often impacted public sector workers, such as state and local government employees, teachers, firefighters, police officers and some nonprofit workers. The formula adjustment could significantly lower benefits, particularly for those with fewer than 30 years of substantial earnings in Social Security-covered work.

The WEP was originally designed to prevent what was seen as an unfair advantage for workers who spent part of their careers in non-Social Security-covered jobs while also qualifying for Social Security benefits. However, critics argued that it unfairly penalized workers who had paid into the system and disproportionately harmed public employees.

Government Pension Offset and Its Impact on Social Security

The GPO applied to individuals who received a government pension from non-Social Security-covered employment and were also eligible for Social Security spousal or survivor benefits. Unlike the WEP, which reduced benefits based on one’s own work history, the GPO affected benefits received as a spouse, widow, or widower.

The GPO formula decreased Social Security spousal and survivor benefits by an amount equal to two-thirds of the recipient’s government pension. For example, if a retired teacher received a monthly pension of $1,200, the GPO would have reduced their spousal benefits by $800, often eliminating Social Security benefits entirely.

Like the WEP, the GPO was controversial, as it disproportionately affected women, teachers and other public-sector employees who had planned their retirement finances around Social Security. Many argued that the provision penalized workers unfairly and reduced financial security for families who had paid into the Social Security system.

How the Social Security Fairness Act Changed the Rules

A woman looking up exceptions to WEP and GPO.

With the passage of the Social Security Fairness Act, both the WEP and GPO were fully repealed, meaning that public-sector retirees affected by these provisions will now receive full Social Security benefits without reductions.

According to the Social Security Administration, the repeal of these provisions will result in two significant changes for approximately 3.2 million people who were subject to the WEP and GPO:

Full restoration of benefits: Retirees previously affected by WEP and GPO will receive their full Social Security payments based on their earnings history or spousal benefits.
Retroactive payments: Eligible retirees will receive one-time payments covering benefits dating back to January 2024, helping them recover income they would have lost under the old system.

What You Need to Do

Most beneficiaries do not need to take action. The SSA will automatically adjust benefits and distribute retroactive payments to eligible recipients. However, if you believe your records are incorrect or if you do not see an expected increase, you may want to:

Check your Social Security statement online at SSA.gov to see your updated benefit amount.
Contact the SSA if you do not receive a retroactive payment but believe you are eligible.
Speak with a financial advisor if you need help adjusting your retirement plan based on these changes.

Bottom Line

A woman trying to figure out what her retirement benefits will be.

With the repeal of the Windfall Elimination Provision and the Government Pension Offset, millions of public-sector retirees should see higher Social Security benefits and receive retroactive payments for lost income. The repeal of these provisions removes financial penalties that many public employees faced in retirement. Social Security benefits are now fully restored for those who were affected, providing greater financial stability for millions of retirees.

Retirement Planning Tips

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