Since the early 1980s, two provisions of Social Security law have significantly reduced benefits for millions of public servants—teachers, police officers, firefighters, and other government employees whose jobs were not covered by Social Security.
These rules – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – were enacted as part of the 1983 Social Security Amendments, a broader legislative effort to shore up the program’s long-term finances.
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They applied to individuals who received a pension from non-covered employment—jobs in which workers do not pay Social Security taxes—and who also qualified for Social Security benefits, either through other employment or through a spouse.
These jobs are typically in state or local government, including public education, where employers maintain their retirement systems instead of participating in Social Security.
WEP and GPO were intended to prevent perceived overpayments of benefits.
But over time, the provisions became a source of confusion, particularly because Social Security benefit statements did not reflect their impact, and frustration for retirees and the financial planners who advised them.
Many say the rules led to unexpected and sometimes significant reductions in retirement income. That’s changing thanks to the Social Security Fairness Act.
The Social Security Fairness Act repealed both the Windfall Elimination Provision and Government Pension Offset effective Jan. 1, 2024, and the SSA began issuing retroactive payments in Feb. 2025.
Image source: Getty Images
Financial advisors highlight harmful WEP, GPO impact
Several financial planners have seen the effects of WEP and GPO firsthand – and in some cases, experienced them personally.
“I lost about $500 per month for four years, four months—or $26,000, plus forgone interest,” said Barbara O’Neill, a certified financial planner and owner of Money Talk.
“I had a full Social Security benefit for a while before I started receiving a pension, so the WEP cut felt especially punitive.”
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David Demming, a certified financial planner with Demming Financial Services, said the effects of WEP and GPO have been widespread. “Forty-two years ago, it was unfair without any warning,” he said.
Lawrence Pon, a certified financial planner with Pon & Associates, agreed. “Many of my retired teacher clients complained about the GPO when their spouse passed away and they did not receive the surviving spouse benefit,” he said. “Others who entered teaching after private-sector careers found their Social Security benefits reduced – or eliminated – because of WEP.”
Pon also shared a personal example: “My dad gets a pension from the state of California, and my mom was receiving Social Security. He did not get the spousal benefit when she passed away.”
While Pon said many clients didn’t face financial hardship, the rules often came as an unwelcome surprise. “They were annoyed they did not get benefits they had paid for.”
What is the Social Security Fairness Act?
Before the Social Security Fairness Act took effect in January 2024, an estimated 2.8 million beneficiaries were affected by either the WEP or the GPO, according to SSA data from December 2023:
WEP: About 2.1 million individuals had their retirement or disability benefits reduced because they also received a pension from non-covered employment.GPO: Roughly 746,000 beneficiaries had their spousal or survivor benefits reduced—or eliminated—for the same reason.Both: Approximately 322,000 people were impacted by both provisions, having worked in both covered and non-covered employment.
The Social Security Fairness Act, signed into law in January 2025, repealed WEP and GPO retroactively to January 1, 2024. The SSA began issuing back payments in February 2025, with full benefit increases reflected in April 2025 payments.
As of this week, the SSA reports distributing more than $14.8 billion in retroactive benefits to over 2.2 million individuals affected by the now-repealed provisions – rules that many public sector retirees have long viewed as inequitable.
While the SSA initially estimated that processing all claims could take more than a year, the agency now expects only the most complex cases – around 600,000 – to face extended delays. Read Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update.
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Experts say the speed at which the Social Security Administration (SSA) has distributed retroactive benefits under the Fairness Act is notable.
“The first year of any new policy will be the rockiest, but Social Security has made approving Fairness Act payments a priority and is moving ahead of schedule,” said Andrew Biggs, a senior fellow at the American Enterprise Institute and author of The Real Retirement Crisis. “This shows that government can move quickly on high-priority items.”
At the same time, Biggs expressed caution.
“What we don’t yet know is whether prioritizing the Fairness Act has slowed other critical SSA functions, such as disability claims processing, which can already be a frustratingly long ordeal.”
Retirees react to Social Security payment windfall
For many, the repeal has brought unexpected financial relief.
“I continue to pay FICA tax as an entrepreneur, so having my full Social Security benefit restored gives me a bit of extra spending money,” O’Neill said.
Pon, meanwhile, is working to ensure his father receives his newly restored benefits. “We’ll be working on the application to get this for him,” he said. “He’ll receive the entire 2024 amount plus 2025 monthly benefits.”
Still, not all retirees were caught off guard by the old rules.
John Power, a certified financial planner with Power Plans, said most of his clients affected by WEP and GPO had incorporated the reductions into their retirement planning. “It was simply part of the equation,” Power said. “Restoring the benefit helps them, but they were already in good financial positions.”
“Most retired on schedule with their state pensions, which made up the majority of their income,” he added. “Those who waited until a reasonable age lost very little compared to their planned income and expenses. And those who retired early had planned accordingly. It wasn’t a surprise hardship.”
Demming echoed that sentiment, saying many clients adapted over time –some by returning to work in the private sector. “Now that the penalties are going away, the one-year settlement feels like windfall money because they had already adjusted,” he said.
Experts say Social Security Fairness Act could hurt Social Security’s finances
Public employees — particularly those nearing retirement — are the clear winners under the new law. “Whether or not it’s good policy is a different question, but retirees will no doubt be pleased to hear that most claims are being processed quickly,” Biggs said.
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Not everyone is celebrating, however.
Alicia Munnell, senior advisor at the Center for Retirement Research at Boston College, has long criticized efforts to repeal the WEP and GPO. “As I said many times, albeit clearly not very persuasively, the Fairness Act is a bad piece of legislation,” she said.
She argues that the law undermines fairness within Social Security’s progressive benefit formula. Public sector workers who did not pay Social Security taxes on part of their careers but earned benefits from other jobs will now appear to have lower lifetime earnings and receive disproportionately higher benefits. “It makes the system unfair,” Munnell said. “And it accelerates the depletion of the trust funds by about six months.”
According to the Social Security Administration’s Office of the Chief Actuary, however, the depletion date for the Old-Age and Survivors Insurance (OASI) Trust Fund remains 2033, even after accounting for the Social Security Fairness Act. However, the combined OASI and Disability Insurance (DI) Trust Funds are now projected to be depleted in 2034, moving up one year from the 2035 estimate prior to enactment of the Social Security Fairness Act.
Currently, the Old-Age and Survivors Insurance (OASI) Trust Fund is expected to pay 100% of scheduled benefits through 2033. After that, the fund will be sufficient to cover only 79% of promised benefits unless Congress acts.
For more, watch Retirement Daily Learning Center: Social Security Primer.
