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Tag: GPO
SSA: It could take more than a year to implement the WEP and GPO repeal
Officials at the Social Security Administration said it could take more than a year for the agency to fully implement recently enacted legislation repealing two controversial tax provisions that reduced the retirement benefits of federal workers.
That’s because although lawmakers in both parties voted overwhelmingly to send the Social Security Fairness Act, a bill repealing Social Security’s windfall elimination provision and government pension offset to then-President Biden’s desk last year, they didn’t provide the agency with any extra money to help effectuate the changes.
The windfall elimination provision reduced the Social Security benefits of retired federal workers and other public servants who spent a portion of their career in the private sector in addition to a federal, state or local government job where Social Security was not intended as an element of their retirement income, such as the Civil Service Retirement System. And the government pension offset reduces spousal and survivor Social Security benefits in families with retired government workers.
The Social Security Fairness Act repealed both provisions, retroactive to January 2024. The WEP affects more than 2 million retired public servants, while 750,000 spouses and survivors are affected by the GPO, with many beneficiaries seeing the entire benefit eclipsed by the offset.
In a post on its website last week, the Social Security Administration warned that with its current funding levels, it could take the agency at least a year to adjust the benefits of everyone due an increase, as well as provide lump sum payments covering what they would have received in 2024 absent the provisions. The agency is currently experiencing a 50-year staffing low, while operating under a continuing resolution had already severely restricted hiring until the Trump administration issued a temporary hiring freeze for most federal agencies last week.
“Processing these changes is very complex and SSA’s analysis shows that much of the work must be done manually, on an individual case-by-case basis,” the agency wrote. “SSA is currently processing pending or new claims involving future benefits and developing procedures and automated solutions for computing retroactive benefits . . . Though SSA is helping some affected beneficiaries now, under SSA’s current budget, SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits.”
Since in many cases the government pension offset fully negated spouses’ survivor benefits, the agency advised people file an application for survivors’ benefits if they hadn’t already, and if they had at some point in the past, to review their mailing address and direct deposit information on file with SSA.
“Because the GPO could reduce or eliminate Social Security spouses’ or surviving spouses’ benefits, some non-covered pension recipients may have never applied for benefits,” SSA wrote. “[Filing] sooner might help you get a higher benefit amount.”
The Social Security Administration (SSA) has announced that it could take more than a year to fully implement the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These changes, which were included in the recent budget reconciliation bill, will have a significant impact on individuals who receive both a government pension and Social Security benefits.The WEP and GPO have long been criticized for unfairly reducing the Social Security benefits of certain individuals, particularly those who have worked in jobs not covered by Social Security. The repeal of these provisions is a welcome development for many retirees, but the process of implementing these changes will not happen overnight.
According to the SSA, it will take time to update their systems and processes to reflect the repeal of the WEP and GPO. This means that individuals affected by these provisions may have to wait more than a year to see the full impact of these changes on their Social Security benefits.
In the meantime, the SSA is urging individuals to continue reporting their government pensions and any other income that may affect their Social Security benefits. It is important for retirees to stay informed about these changes and to be patient as the SSA works to implement the repeal of the WEP and GPO.
Overall, the repeal of the WEP and GPO is a positive development for many retirees, but it may take some time for the full impact of these changes to be felt. In the meantime, individuals should stay informed and be prepared for potential delays in the implementation of these important reforms.
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Senate passes Social Security bill to repeal WEP and GPO
Editor’s note: Due to an editorial process error, a draft version of this story was inadvertently published on Friday night, prior to the Senate’s final vote. Federal News Network regrets the error.
The Senate passed the Social Security Fairness Act to deliver higher Social Security benefits to millions of public sector retirees.
The bill now heads to President Joe Biden’s desk for a signature after the Senate cleared the legislation just after midnight on Saturday by a vote of 76-20.
The legislation to repeal the Windfall Elimination Provision and the Government Pension Offset has been reintroduced each Congress for decades but had not received a vote in either chamber until just this year. The House previously passed the bill in November.
The WEP and GPO are two provisions of Social Security that reduce or sometimes eliminate benefits for certain federal retirees and other public servants, as well as their surviving spouses. Those impacted by WEP and GPO total about 2.4 million, including federal annuitants in the Civil Service Retirement System, along with firefighters, teachers, law enforcement officers and many others.
The WEP reduces benefits for annuitants who worked in both a public sector position not covered by Social Security, as well as a job that’s covered by Social Security, usually in the private sector. The GPO reduces Social Security for surviving spouses who also worked in the public sector. The two-thirds reduction by GPO often results in a full elimination of the benefit.
The vote on the Social Security Fairness Act came shortly after Senate Majority Leader Chuck Schumer committed to taking action on the bill at a labor rally last week. Leaders and members from unions and other labor organizations attended the rally to push for a Senate floor vote on the longstanding bill.
Many have called the WEP and GPO provisions unfair to public servants. Advocates said the legislation will ensure all public sector retirees receive the Social Security benefits they earned during their career. Over the years, the bill has gained strong bipartisan support and the backing of many organizations and unions. John Hatton, the National Active and Retired Federal Employees Association’s staff vice president of policy and programs, called the Senate’s action this week “a long time coming.”
“This is something we’ve been working on for 40 years,” Hatton told The Federal Drive with Tom Temin on Tuesday. “It’s been penalizing people simply because they’ve earned their government pension and then they earn, separately through private sector work, their Social Security benefits. Our members who are CSRS retirees have never understood it. They have always been upset by it. They view it as theft, as do we, and that goes for the firefighters, police officers, the teachers, the municipal workers around the country, who are impacted by this as well.”
The legislation has gained some criticism as well. Republicans who voted against the bill argued that it would have negative impacts on Social Security’s solvency, and called for reforms rather than a full repeal of WEP and GPO.
The Committee for a Responsible Federal Budget, a nonpartisan organization, has said that removing WEP and GPO would advance Social Security’s insolvency by about six months and potentially lead to across-the-board cuts for Social Security beneficiaries. The organization has called for keeping WEP and GPO, and reforming the two Social Security provisions instead.
“The current system overpays some beneficiaries while underpaying others — thoughtful reforms such as those proposed by President Obama or the late Congressman Sam Johnson (R-Texas) could fix this while improving trust fund solvency,” the committee wrote in a Dec. 12 blog post. “We encourage lawmakers to pursue solutions to Social Security’s looming insolvency and not further worsen the program’s finances.”
Lawmakers who have championed WEP and GPO repeal for decades celebrated the Senate’s passage of the bill.
“There is no doubt that Congress has taken too long to address this inequity, but I am grateful to the diligent bipartisan work of my colleagues to help us finally get this over the finish line,” Sen. Lisa Murkowski (R-Alaska) said in a statement early Saturday morning. “This legislation takes care of Alaskans who have dedicated years of service to our communities, serving in integral roles such as teachers, firefighters, and police officers. Hardworking public servants should not be denied the benefits that they paid for because of their career choices, and I’m relieved that this longstanding injustice has been remedied.”
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In a historic moment for millions of retired Americans, the Senate has passed a groundbreaking Social Security bill that will repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP and GPO have long been criticized for unfairly reducing Social Security benefits for individuals who receive pensions from non-covered employment.The repeal of these provisions will provide much-needed relief for teachers, firefighters, police officers, and other public servants who have been negatively impacted by the WEP and GPO. By eliminating these outdated and unjust rules, Congress has taken a crucial step towards ensuring that all Americans receive the Social Security benefits they have earned and deserve.
The passage of this bill is a significant victory for retirees across the country, and a testament to the power of advocacy and grassroots organizing. As we celebrate this important milestone, we must also remain vigilant in holding our elected officials accountable and continuing to fight for a Social Security system that is fair and equitable for all.
This is a momentous occasion for retirees and their families, and a reminder that when we come together and demand change, we can make a real difference in the lives of millions of Americans. Let’s continue to push for progress and build a more just and inclusive society for all.
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