On January 5, 2025, former President Biden signed the Social Security Fairness Act of 2023 into law. The Social Security Fairness Act repeals two provisions which reduced the Social Security benefit payment calculation applicable to many public sector employees known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) that have served to reduce benefits in the Social Security Act for about forty years. The repeal of these two provisions should increase the Social Security benefit payment for qualifying individuals retroactive to January 2024. As a reference, we have prepared the following FAQs summarizing some of the key components of what this means for our public school employers and affected employees.
Q1: How does the repeal of the Windfall Elimination Provision (WEP) change the calculation of Social Security benefits?
The WEP applied to individuals who earned a pension from an employer that was not covered by Social Security (e.g., public school teachers in Connecticut) who also worked additional jobs that were covered by Social Security long enough to qualify for benefits (e.g., public school teachers who worked for a private employer during the summers). The repeal of this provision means that public sector workers, such as public school teachers who took on a second job during the summers, may qualify for an increase in their Social Security benefit payment.
Q2: How does the repeal of the Government Pension Offset (GPO) change the calculation of Social Security benefits?
The GPO applied to individuals who earned a pension from an employer that was not covered by Social Security (like public school teachers in Connecticut) and who also qualified for spousal Social Security benefits. The repeal of this provision means that certain public sector workers and their spouses may qualify for an increase in their Social Security benefit payment.
Q3: Does a person receiving Social Security benefits and a governmental pension need to change anything to receive the potentially increased Social Security benefits?
As of now, there is no action needed for people who have previously filed for Social Security benefits that were previously affected by the WEP or GPO. For those who have not filed for Social Security Benefits and are receiving a governmental pension, it is recommended that they file at this online link or schedule an appointment with the Social Security Administration.
Q4: Does the repeal of the Windfall Elimination Provision and Government Pension Offset affect the responsibilities of employers or otherwise change any reporting requirements for employers?
Not currently.
Q5: Where can individuals and employers learn about the changes the Social Security Administration will be making to implement the repeal of these provisions?
The Social Security Administration has set up this update page link online to track any changes that it will be making in response to the Social Security Fairness Act.