The Social Security Administration (SSA) has initiated the distribution of retroactive payments following the repeal of the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP).
This legislative change has resulted in a total payout of $7.5 billion, benefiting over a third of eligible individuals, with an average payment of $6,710 per person.​
Understanding GPO and WEP
The GPO and WEP were provisions that reduced Social Security benefits for certain public sector employees:​
- Government Pension Offset (GPO): This provision reduced spousal or survivor Social Security benefits for individuals receiving a government pension from employment not covered by Social Security.​
- Windfall Elimination Provision (WEP): This provision reduced the Social Security retirement or disability benefits of individuals who also received a pension from non-Social Security-covered employment.​
These provisions primarily affected federal employees under the Civil Service Retirement System (CSRS) and retirees from state and local governments with retirement systems excluding Social Security.​
Repeal of GPO and WEP
In late 2024, legislation was enacted to repeal both GPO and WEP, retroactive to January 2024. This repeal aimed to rectify the reduction in benefits experienced by many public sector retirees, thereby increasing their Social Security payments.​
SSA’s Progress in Disbursing Retroactive Payments
As of February 2025, the SSA has made significant progress in distributing retroactive payments:​
- Beneficiaries Paid: Approximately 1,128,000 out of the 3.2 million affected individuals have received payments.​
- Total Amount Disbursed: $7.5 billion.​
- Average Payment per Person: $6,710.​
The SSA has leveraged automation to expedite this process but notes that complex cases requiring manual processing may take longer to resolve.​
Future Payment Adjustments
Alongside retroactive payments, the SSA is recalculating ongoing monthly benefits to reflect the repeal:​
- Effective Date: Adjustments are effective from January 2024, with beneficiaries expected to see increased payments starting in April 2025.​
- Notification: Beneficiaries will receive notices detailing their new benefit amounts.​
Guidance for Beneficiaries
The SSA advises beneficiaries to:​
- Inquiries: Wait until April 2025 to inquire about the status of retroactive payments, as processing will continue incrementally throughout March.​
- Pension Information: Be prepared to provide information about pensions from non-Social Security-covered work if requested by the SSA to ensure accurate benefit calculations.​
Impact of the Repeal
The repeal of GPO and WEP has significant implications:​
- Increased Benefits: Beneficiaries previously affected by these provisions will see an increase in their Social Security benefits.​
- Financial Relief: The retroactive payments provide substantial financial relief to many retirees, particularly those in public service sectors such as teaching, firefighting, and law enforcement.​
Distribution of Retroactive Payments
| Metric | Value |
|---|---|
| Total Eligible Individuals | 3,200,000 |
| Beneficiaries Paid | 1,128,000 |
| Percentage Paid | 35.25% |
| Total Amount Disbursed | $7.5 billion |
| Average Payment per Person | $6,710 |
The SSA’s efforts to implement the repeal of GPO and WEP demonstrate a commitment to correcting past benefit reductions affecting millions of public sector retirees.
While progress has been made, ongoing efforts are necessary to ensure all eligible individuals receive their due benefits promptly.​
FAQs
What were the GPO and WEP?
The Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) were provisions that reduced Social Security benefits for individuals receiving pensions from non-Social Security-covered employment.
How does the repeal affect my Social Security benefits?
If you were previously affected by GPO or WEP, your Social Security benefits will increase, and you may receive a retroactive payment covering the period from January 2024 onward.​
When will I receive my adjusted benefits?
The SSA has begun disbursing retroactive payments and plans to adjust ongoing benefits starting in April 2025. Beneficiaries are advised to wait until April before inquiring about payment statuses.
