For decades, millions of public servants—including teachers, police officers, and firefighters—faced a significant reduction in their Social Security benefits. This was due to a law known as the Windfall Elimination Provision, or WEP. But a new law has changed everything, and it could mean a huge difference for your retirement.
What Was the Windfall Elimination Provision?
The WEP was a modified benefit formula that reduced the Social Security benefits of retired or disabled workers who also received a pension from a job that was not covered by Social Security. This typically included many state and local government jobs, where employees contributed to a separate pension system instead of Social Security.
The intent of the law, which was enacted in 1983, was to prevent an “unintended windfall” for these workers. Social Security’s benefit formula is designed to give a higher percentage of income back to low-earning workers. The WEP aimed to prevent someone with a non-Social Security pension from appearing as a low-earner on their Social Security record and receiving a higher-than-intended benefit.
The Social Security Fairness Act
In a historic and long-awaited move, the Social Security Fairness Act was signed into law on January 5, 2025. This bipartisan legislation officially repeals both the WEP and the Government Pension Offset (GPO), which reduced spousal and survivor benefits. This is a monumental victory for public sector workers, and it means that the benefits you earned in both covered and non-covered employment will no longer be unfairly reduced.
What This Means for You
The repeal of WEP will have a direct and positive impact on your financial security in retirement. If you were a public servant who received a non-Social Security pension and were also entitled to Social Security benefits, you will now receive your full, unreduced Social Security payment.
This change is retroactive to January 2024, which means millions of retirees are set to receive significant retroactive payments in addition to their increased monthly benefits. The Social Security Administration (SSA) is currently working to recalculate benefits for those who were impacted by the WEP, a process that may take some time.
For more information, it is recommended to visit the official Social Security Administration website to review your updated benefits and eligibility for retroactive payments. This new law rights a longstanding wrong and provides millions of retirees with the full benefits they have earned through a lifetime of public service.
