Over the years, multiple bills were introduced to amend or repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). None have successfully passed both chambers of Congress—until now.
In December 2024, Congress repealed the WEP and GPO, and in January 2025, President Biden signed it into law with the Social Security Fairness Act.
This solidifies decades of bipartisan efforts to remove these provisions and restore full Social Security benefits to an estimated 2.8 million government workers affected.
As the Social Security Administration begins implementing these changes, your impacted clients probably wonder what this means for their benefits. So, let’s break down the key impacts of the Social Security Fairness Act and what to expect moving forward.
Understanding WEP and GPO
While these provisions were originally intended to prevent individuals from “double-dipping” into Social Security benefits and government pensions, critics have long argued that they disproportionately penalized public servants—such as teachers, firefighters, police officers, and any other state and federal employees who didn’t pay into Social Security but later became eligible for benefits through their work history or spousal benefits.
Here’s how these provisions worked:
- Windfall Elimination Provision (WEP): This applied to government employees who had a private sector job and paid into Social Security, making them eligible for Social Security benefits, but then took a government job where they didn’t pay into Social Security. When they retired, their Social Security benefits were reduced due to WEP.
- Government Pension Offset (GPO): This impacted the same government employees regarding receiving spousal or survivor benefits from their spouse. Because of the size of some pensions, it would eliminate the ability to receive these benefits.
Related: How Are Social Security Benefits Calculated?
What Government Employees Can Expect
The repeal of WEP and GPO means significant financial changes for both current workers and retirees:
- Those still working who haven’t started any Social Security benefits:
These individuals will receive their full benefits once they retire and will no longer have to deal with the reduction of those benefits because of WEP.
In addition, those eligible for spousal and survivor benefits from their spouse will receive those benefits without any reduction from GPO.
- Those who have already retired and are taking Social Security benefits:
Due to how this law was written, those receiving their own Social Security benefits at a reduced amount because of WEP will get retroactive payments back to January 2024. So, they’ll receive a lump sum deposit to cover the amount they should have received for 2024.
Moving forward, they’ll also start receiving the Social Security benefit they should have received all along without the WEP reduction.
- Those who received the survivor benefits after their spouse passed away because their pension was too large:
Those who have lost a spouse and haven’t been receiving survivor benefits, or those who have been getting a reduced benefit because of GPO, will start receiving the full amount.
Those who would have been eligible in 2024 will also get a lump sum retroactive payment back to January 2024.
What’s Next?
This information can be a lot to digest for clients.
While the repeal is a significant victory for affected retirees and workers, it’s important to emphasize to clients that the transition process may take time. After all, with 2.8 million people impacted and a government agency adjusting to a new administration, setting expectations for potential delays is a good idea.
Currently, the Social Security Administration has not provided a definitive timeline for when all payments will be processed, but financial professionals should encourage their clients to stay informed and prepared.
Related: Social Security: How to Grow Your Practice Around the Advice Clients Need Most
Helping Clients Navigate the Changes
The Social Security Fairness Act presents an opportunity for financial professionals to support government retirees in understanding and maximizing their Social Security benefits.
How can you ensure clients are taking full advantage of these changes?
Now is the time to review financial plans, adjust retirement income projections, and help clients prepare for potential retroactive payments.
If you’re not a Social Security expert, you’re not alone. Although Social Security plays a vital role in retirement planning, many financial professionals don’t have access to the expertise they need to guide clients effectively.
