In a landmark action, on January 5, 2025, former President Biden signed into law the "Social Security Fairness Act," effectively repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). This change, retroactive to January 1, 2024, marks a significant shift in the landscape of Social Security benefits, promising to impact millions of Americans who have been subject to these provisions.

Understanding WEP and GPO

The Windfall Elimination Provision (WEP) was introduced to adjust the Social Security benefits of individuals who receive a pension from work not covered by Social Security, such as in certain government jobs. The rationale was to prevent these individuals from receiving a "windfall" by collecting both a full pension and full Social Security benefits. However, critics argued that WEP often unfairly reduced benefits for many public servants, including teachers and police officers, who had also paid into Social Security through other employment.

Similarly, the Government Pension Offset (GPO) affected the Social Security benefits of spouses, widows and widowers who also received a government pension. The GPO reduced Social Security spousal or survivor benefits by two-thirds of the government pension amount, often leaving beneficiaries with significantly diminished financial support.

Impact of the repeal

The repeal of WEP and GPO is poised to restore full Social Security benefits to those who have been affected by these provisions. Public sector employees, such as educators, law enforcement officers and other government workers, stand to benefit the most. Many of these individuals could see an increase in their monthly Social Security checks, providing them with greater financial security in retirement.

For those who have been receiving reduced spousal or survivor benefits due to the GPO, the repeal means they may soon access the full benefits they are entitled to, potentially alleviating financial strain for many families.

Steps you can take

Given that Social Security benefits are only payable retroactively for six months, it is crucial for affected individuals to act promptly.

If you’ve registered with the Social Security Administration but are receiving reduced benefits as a result of either the WEP or the GPO, here are some steps to consider:

1. Review your benefits: Check your Social Security statement to understand how the repeal may affect your benefits. The Social Security Administration (SSA) provides online tools and resources to help you assess your situation.
2. Contact the SSA: Reach out to the SSA to inquire about adjustments to your benefits. They can provide guidance on how the repeal impacts your specific circumstances and assist with any necessary paperwork.
3. Consult a financial advisor: Consider speaking with a financial advisor to understand the broader implications of the repeal on your retirement planning. They can help you make informed decisions about your financial future.
4. Act quickly: Since the law is retroactive to January 1, 2024, and benefits are only payable retroactively for six months, it is important to act swiftly to ensure you receive any back payments you are entitled to.

Call to action for government and public sector employees

If you are a former government or public sector employee who hasn’t previously registered with the Social Security Administration (SSA), it is crucial to take immediate action to ensure you receive the benefits you are entitled to following the repeal of the WEP and GPO.

1. Register with the SSA: If you have not yet registered, create a "my Social Security" account on the SSA's official website. This account will allow you to access your Social Security statement, review your earnings record and understand how the repeal may impact your benefits.
2. Verify your earnings record: Once registered, carefully review your earnings record to ensure all your work history is accurately reflected. This is especially important for those who have worked in both covered and non-covered employment.
3. Schedule an appointment with the SSA: Contact the SSA to schedule an appointment, either in person or over the phone, to discuss your specific situation. The SSA can provide personalized assistance and help you navigate any necessary steps to adjust your benefits. With the reduction to this workforce recently, callers may experience a longer wait time than usual.
4. Stay informed: Keep abreast of any updates or additional guidance from the SSA regarding the implementation of the Social Security Fairness Act. This will ensure you are aware of any changes that may affect your benefits.

The Social Security Administration has a page dedicated to compliance with the Social Security Fairness Act, which you can access at https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html.

By taking these steps, government and public sector employees can ensure they are fully informed and prepared to take advantage of the benefits restored by the repeal of the WEP and GPO.

The repeal of the WEP and GPO represents a significant victory for many Americans who have long advocated for fairer Social Security treatment. By acting promptly, affected individuals can maximize their benefits and secure a more stable financial future.

IMPORTANT INFORMATION

This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.