Social Security Government Pension Offset: Update

On January 5th, 2025 the Social Security Fairness Act was signed into law, eliminating the controversial Government Pension Offset (“GPO”) and Windfall Elimination Provision (“WEP”).  The Act ends provisions that reduced or eliminated Social Security benefits for 3.2 million people who receive a pension on work not covered by Social Security.  These pensions are most commonly associated with state and county workers such as teachers, law enforcement and some firefighters. We have written about the changes previously, but up until now, the Social Security Administration has not provided details about the implementation of the new rules.  Many have been asking, “When do I start receiving my increased Social Security?”  Here is an update on the timing of the changes.

The Social Security Administration acknowledges that it could take more than a year to fully implement the repeal of WEP and GPO.  However, SSA has announced that beginning February 25, 2025 retroactive payments have begun. If you are currently receiving reduced Social Security payments due to GPO or WEP, SSA will automatically review your case, and make the required adjustment.  There is no need to apply for a change in benefits. SSA will deposit a lump-sum payment for retroactive benefits calculated from January 1, 2024, the effective date of the rule change.  You will also receive a mailed notice that your benefit has been adjusted. As of the date of this writing, SSA indicates that it has processed approximately 600,000 of the 3.2M people impacted, so if you have not yet received your increased benefit then you are not alone.

If you never applied for Social Security benefits or if you are not sure if you applied for benefits due to the fact that the GPO or WEP reduced your benefit or spousal benefit to zero, you may want to apply for benefits. The SSA will not review your case if you never applied or if you are not currently receiving benefits. The best way to apply for Social Security is through the website at www.ssa.gov/apply

Of course, this rule change is not a reason to start benefits early! There are still significant benefits to waiting! If you have not yet applied for benefits and have questions about whether now is the time apply, please give us a call.