Social Security to Issue Retroactive Payments, Increased Benefits for Public Workers Affected by WEP and GPO
The Social Security Administration announced it will begin issuing retroactive payments and increased monthly benefits to more than 3.2 million public sector workers impacted by the Windfall Elimination Provision and Government Pension Offset following the repeal of both provisions.
The move comes after the Social Security Fairness Act, signed into law on Jan. 5, 2025, eliminated WEP and GPO, which had reduced or eliminated Social Security benefits for individuals who received public pensions from non-Social Security-covered employment.
Implementation Timeline
- Retroactive payments will be issued by the end of March 2025, covering benefits dating back to January 2024, when WEP and GPO were repealed.
- Increased monthly benefits for eligible beneficiaries will begin in April 2025.
- The SSA advises recipients to wait until after their April payments before contacting the agency with questions about their benefits.
Read the official SSA announcement: SSA Blog.
What This Means for Public Employee Retirement Systems
The repeal of WEP and GPO is expected to increase Social Security benefits for retired public employees, including teachers, firefighters, police officers, and other state and local government workers in Texas.
The changes may affect retirement planning strategies and public pension fund forecasts. Trustees and administrators of public employee retirement systems should consider the following:
- Retirees may see higher Social Security income than previously anticipated, potentially affecting withdrawal strategies from pension funds.
- State and local pension systems may need to adjust retiree financial security and benefit coordination projections.
- Member communication will be key in ensuring retirees understand how the changes impact their total retirement income.
Public pension trustees and administrators may wish to review system policies related to pension coordination with Social Security benefits and adjust member guidance accordingly.
Background on WEP and GPO
Before their repeal, WEP and GPO reduced Social Security benefits for workers who also received a public pension from an employer that did not withhold Social Security payroll taxes.
- WEP applied to public employees who had worked in both covered (Social Security-paying) and non-covered (non-Social Security-paying) jobs, reducing their Social Security retirement benefits.
- GPO reduced spousal and survivor benefits for individuals receiving a government pension, in some cases eliminating them entirely.
The repeal of these provisions has long been sought by public sector workers and retirement advocacy organizations who argued that the rules unfairly penalized employees who had contributed to both Social Security and public pension systems.
Read more about the impact of the repeal:
- ABC Action News: Retroactive Checks Coming for Public Employees
- AP News: Higher Payments on the Way for Former Public Workers
- MarketWatch: Social Security Checks Coming for Previously Ineligible Workers
- Investopedia: Social Security Benefits Under New Law
Next Steps for Public Employee Retirement Systems
Trustees and administrators should consider proactive steps to help their members navigate these changes:
- Communicate the changes to members who may be eligible for increased Social Security benefits.
- Update benefit projections and retirement planning tools to account for revised Social Security income.
- Advise retirees and future retirees on how these changes may impact their overall retirement strategy.
For official updates, visit the SSA’s Social Security Fairness Act page.
About the Author:Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]