If you’ve spent your career as a teacher, firefighter, police officer, or other government employee, I’ve got some potentially life-changing news for you.

After years of advocacy from public sector employees, Congress has finally repealed the controversial Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that have been reducing Social Security benefits for millions of government workers since the 1980s.

What Has Changed?

At the end of President Biden’s term, the Social Security Fairness Act was passed to eliminate the windfall provisions that have long penalized federal employees who receive pensions. Before this change, if you worked in a government position and paid into a pension instead of Social Security, your Social Security benefits were either significantly reduced or eliminated entirely.

The good news? This change is retroactive to January 2024, and the Social Security Administration (SSA) is already working to implement these changes.

Implementation Progress as of March 24, 2025

The SSA has made significant progress since the change was announced:

• Retroactive Payments: As of March 4, 2025, the SSA has distributed over $7.5 billion in retroactive payments to more than 1.1 million beneficiaries, with an average payment of $6,710.
• Monthly Benefit Adjustments: Affected individuals will see increased monthly benefits starting in April 2025.
• Beneficiary Notifications: The SSA is sending notices to those whose benefits have been adjusted, explaining the changes and any retroactive payments.
• New Claims Required: For those who have never claimed Social Security benefits before (perhaps because they knew they would receive little or nothing due to the WEP/GPO), you will need to submit an application to begin receiving benefits.

Who’s Affected by This Change?

You might benefit from this change if:

• You worked as a teacher, in a union, or other government position where you didn’t pay into Social Security
• You receive a pension from that non-Social Security covered employment
• You (or your spouse) also worked enough in Social Security-covered jobs to qualify for some benefits

Many government employees mistakenly believe they won’t get any Social Security because they didn’t pay much into the system. But here’s something crucial that often gets overlooked: even if you primarily worked in a non-covered position, you may be eligible for spousal benefits.

What Is the Spousal Benefit Opportunity?

If your spouse paid into Social Security throughout their career, you may be eligible for up to 50% of their Social Security benefit—even if you spent most of your career not paying into Social Security yourself.

Before this law change, the Government Pension Offset (GPO) provision would have reduced or eliminated these spousal benefits. Now, you can potentially receive the full spousal benefit, regardless of your pension.

Action Items and Next Steps

With the implementation now underway, I recommend those affected take the following action: 

1. Register on SSA.gov if you haven’t already. Make sure your account is set up and your information is current.
2. Apply for benefits if you haven’t previously. If you’ve never applied for Social Security benefits because you knew the WEP/GPO would eliminate most or all of your benefit, you need to submit an application now.
3. Verify your marital status is correctly recorded with the Social Security Administration. If you’re eligible for spousal benefits, you’ll need to have documentation showing you’ve been married for at least one year.
4. Check your mail for notifications from the SSA about your benefit adjustments and any retroactive payments.
5. Monitor your bank account for retroactive payments if you’re already receiving Social Security benefits.
6. Consider tax implications. Remember that increased Social Security benefits may increase your taxable income, depending on your total household income. You might want to consult with a tax professional to understand how this could affect your tax situation.

The Potential  Financial Impact

This change represents a potentially significant financial boost for many retired public servants who have long felt penalized by the windfall provisions. For some, it could mean hundreds or even thousands of additional dollars each month.

With the average retroactive payment at $6,710 and ongoing monthly benefit increases, many retirees are seeing substantial improvements to their financial situation.

Moving Forward

The repeal of the WEP and GPO aims to provide fairer benefits to public sector workers, including teachers, firefighters, and police officers, who were previously affected by these reductions.

We’ll continue monitoring this situation and provide updates as more information becomes available. In the meantime, making sure your SSA.gov account is in order and submitting an application if you’ve never claimed benefits are the best proactive steps you can take.

If you have additional questions about the impact of these changes on your financial plan, you can set up a call with our team by clicking here!

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