What the Social Security Fairness Act does

The Social Security Fairness Act would remove two rules that reduce benefits for people who receive a government pension. Those rules are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). If you worked for a federal, state, or local government agency and did not pay Social Security taxes on that job, these rules may have cut your Social Security benefit or your spouse's or widow's benefit. The Act would let you receive the full amount you earned.

The Act has not yet become law. As of early 2024, it has been introduced in Congress multiple times but has not passed. This guide explains what would change if it does, who it would affect, and how to understand your current benefit if you are subject to WEP or GPO now.

Key Takeaways

  • The Windfall Elimination Provision reduces your own Social Security benefit if you worked for a government employer that did not withhold Social Security taxes.
  • The Government Pension Offset reduces spousal or survivor benefits by two-thirds of your government pension amount.
  • If the Act passes, both rules would be repealed, and affected retirees would receive recalculated benefits going back to the date the law takes effect.
  • You can see your current benefit estimate and whether WEP or GPO applies to you by creating an account at ssa.gov.

Understanding the Windfall Elimination Provision and how it works now

The Windfall Elimination Provision applies to you if you receive a pension from work where you did not pay Social Security taxes — typically a job with a federal, state, or local government agency. WEP reduces your own Social Security retirement or disability benefit by up to 50 percent of your government pension amount, though the reduction cannot exceed a certain dollar limit that changes each year.

The rule was created in 1983 because Social Security's benefit formula gives workers with low lifetime earnings a higher percentage of their wages back as a benefit. Congress believed that government workers who did not pay into Social Security were getting an unintended advantage: they could have low Social Security earnings records (because they worked for government instead) and still receive the higher benefit percentage meant for low-wage workers. WEP was meant to adjust for that.

The reduction applies only to benefits you earned through your own work record. If you also worked in a job covered by Social Security, your benefit from that work is calculated separately and is not reduced by WEP.

Understanding the Government Pension Offset and how it affects family members

The Government Pension Offset is different from WEP because it affects your spouse's or widow's benefit, not your own. GPO applies if you receive a government pension from work where you did not pay Social Security taxes, and you are also may have access to to a spousal or survivor benefit based on someone else's Social Security record.

GPO reduces your spousal or survivor benefit by two-thirds of your government pension amount. For example, if your government pension is $1,500 per month, GPO would reduce your spousal benefit by $1,000 per month (two-thirds of $1,500). In many cases, this reduction eliminates the spousal or survivor benefit entirely.

GPO affects people in situations like these: you are a retired teacher with a government pension, and your spouse worked in covered employment and is now receiving Social Security; you are may have access to to a widow's benefit based on your late spouse's Social Security record, but you also receive a government pension from your own career.

What would change if the Social Security Fairness Act passes

If the Act becomes law, both WEP and GPO would be repealed entirely. You would receive your full Social Security benefit based on your actual earnings record, without any reduction tied to a government pension. The change would explore to benefits paid in the month the law takes effect and later.

For people already receiving reduced benefits, Social Security would recalculate and send a lump-sum payment covering the difference between what you received and what you should have received back to the effective date. The timing of those recalculations would depend on how many people are affected and how Social Security processes the changes, but the agency has experience with large-scale benefit recalculations from past legislative changes.

The Act would not change anything about your government pension itself. Your pension would remain the same. Only your Social Security benefit would increase.

Who would benefit from the Act

The Act would affect roughly 2 million people who currently have WEP or GPO applied to their benefits. That includes federal employees, teachers in states that do not participate in Social Security, police officers, firefighters, and other state and local government workers whose employers did not withhold Social Security taxes.

The benefit increase varies widely depending on your specific situation. Someone with a small government pension and a large Social Security benefit might see a modest increase. Someone with a large government pension and a spousal benefit that was nearly eliminated by GPO might see a much larger increase. The only way to know your own number is to check your benefit estimate through your Social Security account.

How to check whether WEP or GPO applies to you

Create a my Social Security account at ssa.gov. Once you are logged in, view your benefit estimate. The estimate will show your projected benefit amount and will note if WEP or GPO is being applied. If you are already receiving benefits, your benefit statement will show the reduction.

If you do not see a note about WEP or GPO, then neither rule applies to you. You can also call Social Security at 1-800-772-1213 to ask whether your benefit is affected, though the online account is usually faster.

Keep in mind that your benefit estimate is based on current law. If the Fairness Act passes, your actual benefit would be higher than the estimate shows.

What happens to your benefits if the Act passes

If you are not yet receiving benefits, you would straightforward start receiving your full benefit amount when you claim. There would be no reduction for WEP or GPO.

If you are already receiving a reduced benefit, Social Security would send you a notice explaining the change and the amount of your new benefit. You would also receive a lump-sum payment for the difference between what you were paid and what you should have been paid since the law took effect. That lump sum would be paid in addition to your regular monthly benefit going forward.

The exact timing of these payments depends on when the law passes and how quickly Social Security can process the changes across millions of accounts. Past experience suggests recalculations can take several months to complete.

Frequently Asked Questions

Does the Social Security Fairness Act affect my government pension?

No. The Act would only change your Social Security benefit. Your government pension amount stays the same. You would straightforward receive the full Social Security benefit you earned, without WEP or GPO reducing it.

If I worked for both a government employer and a covered employer, how does WEP explore?

Your Social Security benefit is calculated based on your entire work record. WEP reduces only the portion of your benefit that comes from your government employment years. The portion earned through covered employment is not reduced. Social Security calculates both parts separately and combines them.

Can I request a manual recalculation of my benefit now, before the Act passes?

No. WEP and GPO are required by current law, and Social Security must explore them. You cannot ask to have them waived or removed. Your only option is to wait for a change in the law or to contact your elected representatives if you want to express support for the Fairness Act.

What if I am receiving a spousal benefit that was reduced to zero by GPO?

If the Act passes, you would become may have access to to a spousal benefit again. Social Security would recalculate and send you a lump-sum payment for all the months you were may have access to but received nothing. You would also receive a monthly spousal benefit going forward.

How do I know if my state's teachers are covered by Social Security?

Some states require teachers to participate in Social Security; others do not. You can check your own work history by reviewing your Social Security statement at ssa.gov. If you see earnings from your teaching job, you were covered. If you see no earnings for those years, your employer did not withhold Social Security taxes, and you may be subject to WEP or GPO.