One of the last acts passed by the previous Congress, the Social Security Fairness Act, effectively ended two rules that lowered certain retirement and survivor benefits. Although the law is retroactive starting in January 2024, those impacted by the WEP and GPO have started seeing higher deposits from Social Security, most of them in April.
WEP and GPO Have Been Repealed
The Windfall Elimination Program (WEP), which reduced Social Security retirement benefits for federal retirees receiving a CSRS pension, and the Government Pension Offset (GPO), which reduced Social Security spousal survivor benefits for those with a CSRS pension, have both been repealed. For those who were impacted by these rules, the outcome could result in as little as a few dollars more each month from Social Security to, in some cases, as much as $1000 more monthly.
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Re-Evaluating Benefits for CSRS Annuitants
Some affected individuals may have never claimed social security benefits because either the GPO or WEP reduced their benefit so much that the dollar amount ended up being nothing or very little. If any of your clients fall into this category, they will likely have to file a new application with the Social Security Administration. The new law was initiated starting February 25, 2025, resulting in higher benefit amounts being paid for March. As Social Security deposits are made for the previous month, some CSRS retirees saw the increased benefit amount starting last month. There are currently 169,800 applications for adjusted benefits due to the eradication of the WEP and GPO in total and according to ssa.gov, 82% were complete as of April 25. More complex cases are estimated to be complete by November, at the latest.
Clarification for Federal Employees Retiring with CSRS-Offset Pension
What caused some considerable confusion over the last few months regarding the Social Security Fairness act pertains to federal retires with what is known as a “CSRS-offset” annuity. For federal employees with at least five years of service contributing to CSRS, who returned to federal work after a break in service of at least one year, their retirement benefit is “offset” by the amount of Social Security benefits they receive. The repeal of the WEP only impacts Social Security income – not the federal pension offset. This is an important distinction to make when discussing their retirement plan.
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