The Social Security Fairness Act removes two rules that reduced benefits for certain government workers
On January 16, 2024, President Biden signed the Social Security Fairness Act into law. This law eliminates two provisions — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that had reduced Social Security benefits for people who also received pensions from government jobs where they did not pay Social Security taxes.
If you worked for a federal, state, or local government agency and did not contribute to Social Security during that job, but you worked other jobs where you did pay Social Security taxes, these rules may have affected your benefit amount. The new law phases out both rules over ten years, meaning the reduction to your benefits will gradually disappear.
The change is not automatic. You do not need to do anything right now, but you may be may have access to to back payments if you were already receiving reduced benefits. The Social Security Administration will contact you if you may have access to.
Key Takeaways
- The Windfall Elimination Provision reduced your own Social Security benefit if you received a government pension from a job where you did not pay Social Security taxes.
- The Government Pension Offset reduced spousal or survivor benefits by two-thirds of your government pension amount.
- Both rules phase out gradually between 2024 and 2033, so the reduction to your benefits will shrink each year.
- The Social Security Administration will contact you if you are may have access to to back payments; you do not need to contact them first.
- If you have not yet claimed benefits, you may receive a higher benefit amount when you do.
How the Windfall Elimination Provision worked and what changes now
The Windfall Elimination Provision (WEP) applied to you if you received a pension from a government job where you did not pay Social Security taxes — typically a federal civil service job, some state or local government positions, or certain railroad jobs. Even though you did not contribute to Social Security during that job, you may have worked other jobs where you did pay Social Security taxes.
Under the old rule, the Social Security Administration reduced your own benefit by up to half of your government pension amount, with a maximum reduction that changed each year. For example, if your government pension was $2,000 per month and your calculated Social Security benefit was $1,500 per month, the reduction could have lowered your Social Security payment to $1,000 or less.
Starting in 2024, this reduction phases out. In 2024, the reduction applies to only 90 percent of your government pension. In 2025, it applies to 85 percent. The reduction shrinks by 5 percentage points each year until 2033, when it disappears entirely. By 2034, your Social Security benefit will be calculated as if you had never worked for a government employer.
How the Government Pension Offset worked and what changes now
The Government Pension Offset (GPO) affected spouses, ex-spouses, and survivors who received benefits based on someone else's Social Security record. If you received a government pension from a job where you did not pay Social Security taxes, the GPO reduced your spousal or survivor benefit by two-thirds of your government pension amount.
For example, if you were may be able to access for a spousal benefit of $800 per month and you received a government pension of $1,500 per month, the GPO would have reduced your spousal benefit by $1,000 (two-thirds of $1,500), leaving you with no spousal benefit at all. Many people lost their entire spousal or survivor benefit because of this rule.
Like the WEP, the GPO now phases out between 2024 and 2033. In 2024, the offset applies to only 35 percent of your government pension instead of the full two-thirds. The percentage shrinks by about 5 percentage points each year until 2033, when the offset disappears. If you are a surviving spouse or child, this change may restore benefits you lost or increase benefits you currently receive.
Who receives back payments and how much
If you were already receiving reduced benefits under the WEP or GPO before January 16, 2024, you may be may have access to to back payments. The Social Security Administration will recalculate your benefits as if the new law had been in effect from the date you first claimed, and will send you a lump sum for the difference.
The amount of back pay depends on how long you received reduced benefits and how much the reduction was. Someone who claimed benefits five years ago may receive several thousand dollars in back payments; someone who claimed recently may receive less. The Social Security Administration will calculate this automatically — you do not need to request it.
Back payments are issued as a single check or direct deposit. The Social Security Administration will contact you by mail with the amount you are owed and when to expect payment. If you have questions about your specific back payment, you can contact Social Security at 1-800-772-1213 or visit your local Social Security office.
What to do if you have not yet claimed benefits
If you are not yet receiving Social Security benefits but you worked both a government job (without paying Social Security taxes) and other jobs where you did pay Social Security taxes, your future benefit will be higher than it would have been under the old rules.
When you claim benefits, the Social Security Administration will calculate your benefit using the new rules. You do not need to do anything special or notify Social Security that the law has changed — the calculation happens automatically. Your benefit statement, which you can view on the Social Security website or request by mail, will show your estimated benefit amount based on current law.
If you are close to claiming age and want to understand how the new law affects your specific situation, you can speak with a Social Security representative by calling 1-800-772-1213. They can explain how your government pension and other earnings will affect your benefit.
The phase-out schedule year by year
| Year | WEP Reduction Applies To | GPO Reduction Applies To |
|---|---|---|
| 2024 | 90% of government pension | 35% of government pension |
| 2025 | 85% of government pension | 30% of government pension |
| 2026 | 80% of government pension | 25% of government pension |
| 2027 | 75% of government pension | 20% of government pension |
| 2028 | 70% of government pension | 15% of government pension |
| 2029 | 65% of government pension | 10% of government pension |
| 2030 | 60% of government pension | 5% of government pension |
| 2031–2033 | Continues to decrease 5% per year | Continues to decrease 5% per year |
| 2034 and beyond | No reduction (0%) | No reduction (0%) |
Common situations affected by the new law
A federal employee who worked 20 years for the U.S. Postal Service (where they paid Social Security taxes) and then 15 years for the State Department (where they did not) would have had their Social Security benefit reduced under the WEP. Now that reduction shrinks each year. If they claimed benefits in 2023, they will receive a back payment covering the difference between what they received and what they would have received under the new rules.
A widow whose husband was a teacher in a state pension system (not covered by Social Security) would have lost most or all of her spousal survivor benefit under the GPO. Under the new law, her survivor benefit is restored gradually. If she was already receiving a reduced benefit, she will receive back payments starting in 2024.
A person who worked for a city government for 10 years without paying Social Security, then worked in the private sector for 25 years and paid Social Security taxes, will now receive a higher Social Security benefit when they claim. The reduction that would have applied under the old WEP rules no longer exists.
Frequently Asked Questions
Do I need to contact Social Security to get my back payment?
No. The Social Security Administration will contact you by mail if you are owed back payments. You do not need to call or visit an office. If you do not receive a notice within a few months of the law taking effect, you can call 1-800-772-1213 to confirm your status.
Will the phase-out affect my benefits every year?
Yes. If you are already receiving reduced benefits, your benefit amount will increase slightly each year as the reduction shrinks. You do not need to do anything — Social Security will adjust your payment automatically. Your benefit statement will show the new amount each January.
What if I am divorced from someone who worked a government job?
If you were married at least 10 years and your ex-spouse worked a government job without paying Social Security taxes, the GPO may have reduced your ex-spousal benefit. The new law phases out this reduction the same way it does for current spouses. You will receive back payments if you were already claiming.
Can I claim benefits earlier now that the reduction is smaller?
You can claim at any age you are may be able to access, but claiming before your full retirement age still results in a permanently reduced benefit. The new law changes the calculation, not the age at which you can claim. A Social Security representative can explain how your specific age and earnings history affect your benefit amount.
Does this law affect my Medicare or Medicaid?
No. The Social Security Fairness Act changes only how Social Security benefits are calculated. It does not affect your Medicare coverage, your Medicaid status, or any other government programs. Your benefits from other programs remain the same.