Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update
By Kevin Doll, CFP®
Many clients have been impacted by two Social Security provisions previously reducing, or even eliminating, Social Security benefits they might have been eligible for if they did not have a government pension.
The Social Security Fairness Act, HR 82, concerning the Windfall Elimination Provision and Government Pension Offset, was signed into law on January 5, 2025. Upon implementation, the Social Security Fairness Act eliminates the reductions of Social Security benefits because of pensions from work not covered by Social Security.
For many, this change could result in meaningful Social Security benefits based on their spouse’s record (assuming their spouse did not also have a government pension) for which they were previously ineligible to receive. When and how clients begin taking Social Security benefits has always been a conversation we have as clients near the minimum eligibility age (currently 62). The elimination of the WEP and GPO may impact our recommendations, especially if the current eligible spouse has not started taking benefits or is under age 70. For those over age 70, there is no additional benefit to delaying payments and you should likely file for benefits as soon as you are able.
As you can imagine, the Social Security Administration is evaluating how to implement the Act and will provide more information as soon as available, so it may be a few weeks or longer before they are able to determine eligible benefits or start sending checks. Note that adjustments will be retroactive to January of 2024.
Below are guidelines and comments from the Social Security Administration’s website* on next steps:
I previously filed for Social Security benefits and they are partially or completely offset.
At this time, you do not need to take any action except to verify that we have your current mailing address and direct deposit information if it has recently changed. Most people can do this online with their personal my Social Security account without calling or visiting Social Security. Visit www.ssa.gov/myaccount to sign in or create your account. We will provide ongoing updates regarding implementation on this page.
I have not previously filed for Social Security benefits.
If you are receiving a public pension and are interested in filing for benefits, you may file online at ssa.gov/apply or schedule an appointment.
*https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.
It may be wise to contact your local Social Security office and schedule a phone or in-person meeting to review eligibility, estimated benefits, and the steps you need to take to apply. As always, we’re here to help and encourage you to contact your advisor once you have updated eligibility and estimated payment information.
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