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Social Security Fairness Act Ends Windfall Elimination Provision and Government Pension Offset

Harrington Heep, LLP

Municipal employees may, over the course of their working life, transition between jobs in which they contribute into Social Security and those in which they are eligible for a government pension. The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reduced the Social Security payments to employees, in the case of the WEP, and their spouses and dependents, in the case of the GPO, to account for the fact that the retiree was paid a pension from a job that did not deduct from earnings a contribution to Social Security.  


On January 5, 2025, President Biden signed into law the Social Security Fairness Act. The Act eliminates the WEP and GPO reductions to the Social Security benefit. The change will result in higher Social Security payments to those who have worked both in the public and private sectors. It is estimated that approximately 3 million people are affected by the elimination of these provisions. The law affects benefits issued after December 2023, so some retirees will receive back Social Security benefits. 


Municipal employers previously informed new hires of the potential impact on their pensions caused by the WEP and GPO by having them sign Form SSA-1945. The Social Security Administration plans to issue guidance on the implementation of the Act, which is likely to advise employers that this form is no longer necessary. Until that guidance is issued, there is no harm in continuing to collect the signatures.  

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