Lido Insights

24 July 2025

The Repeal of WEP & GPO: What it Means for You

Understanding WEP & GPO

On January 5th of this year, the Social Security Fairness Act was passed which repealed both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)

For nearly 50 years, the provisions reduced social security benefits for certain public sector workers and their families whose employers did not withhold Social Security taxes from their salaries (These may include local and federal government employees, teachers, etc.).

WEP adjusted benefits for retirees who receive a pension but had not paid into Social Security. The WEP adjustment prevented them from receiving more than intended, a windfall effect according to lawmakers.

GPO affected spouses and survivors receiving a pension benefit not covered by Social Security, reducing their Social Security benefit by two-thirds of their pension benefit.

Moving forward, those previously subject to WEP and GPO will receive their full Social Security benefits.

 

Repeal, Reimbursement, and Next Steps

Individuals previously collecting reduced Social Security benefits due to these provisions will be paid a retroactive lump sum benefit back to January 1, 2024, The payments with be issued automatically. Notices of the retroactive payment and an explanation of benefit changes will be mailed.

There is no need for any immediate action, but we encourage our clients to review their records and contact the SSA for any discrepancies in their adjusted benefit.

The adjusted benefit increase will vary depending on the Social Security amount withheld from previous WEP & GPO provisions. For individuals who are entitled to a pension not covered by Social Security, but have yet to collect benefits, these provisions no longer apply.

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