Two of the most prominent provisions – the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) - that can substantially reduce Social Security benefits for some federal, many public sector and civil service employees were just eliminated after being in effect for the last 40 years!

Teacher, police officers, firemen, and some federal workers are some of the most common groups affected by these provisions, and as of December 31st, 2023, they may see a bump in benefits or expected benefits they’re eligible to receive.

More specifically, we discuss:

• President Biden passes the Social Security Fairness Act on January 5th, 2025
• What are the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) and how do they work?
• How were some public sector and federal employees and retirees affected by these Social Security provisions?
• What are the potential benefits now that these provisions have gone away?
• Retroactive 2024 lump-sum payments
• Tax implications now that the WEP and GPO have been eliminated
• What you need to do to receive potential additional Social Security benefits

Resources:

• Access Episode Show Notes and Sign Up for the Retired·ish Newsletter
• Ask Cameron A Question!

 

Key moments:

(00:00) WEP & GPO provisions reduce Social Security benefits for public servants.

(07:00) How do the WEP and GPO provisions work?

(08:51) GPO reduces public pension spouse's Social Security w/ examples.

(13:25) How might your benefits change moving forward in 2025 and beyond?

(14:19) Lump sum back-pay of Social Security benefits for 2024.

(14:55) Tax implications of lump sum payments and increased benefits.