The Social Security Administration (SSA) has begun distributing over $14.8 billion in retroactive benefits to more than 2.2 million individuals affected by the recently repealed Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act, which took effect in January 2024, eliminated these provisions retroactively to January 1, 2024. WEP and GPO had significantly reduced benefits for millions of public servants, including teachers, police officers, firefighters, and other government employees whose jobs were not covered by Social Security.
These provisions were enacted as part of the 1983 Social Security Amendments to shore up the program’s long-term finances. Financial advisors have witnessed the harmful impact of WEP and GPO firsthand. David Demming of Demming Financial Services noted that the rules were implemented without warning 42 years ago, while Lawrence Pon of Pon & Associates shared that many of his retired teacher clients were denied the surviving spouse benefit due to GPO, affecting their financial stability.
According to the SSA, an estimated 2.8 million beneficiaries were affected by either WEP or GPO. About 2.1 million individuals had their retirement or disability benefits reduced by WEP, while roughly 746,000 beneficiaries had their spousal or survivor benefits reduced or eliminated by GPO. Approximately 322,000 people were impacted by both provisions.
The SSA initially estimated that processing all claims could take more than a year, but the agency now expects only the most complex cases—around 600,000—to face extended delays.
Social Security retroactive benefits distribution
For many retirees, the repeal has brought unexpected financial relief.
One retiree said, “I continue to pay FICA tax as an entrepreneur, so having my full Social Security benefit restored gives me a bit of extra spending money.” Lawrence Pon is working to ensure his father receives his newly restored benefits, stating, “We’ll be working on the application to get this for him. He’ll receive the entire 2024 amount plus 2025 monthly benefits.”
However, not all retirees were caught off guard by the old rules. John Power of Power Plans noted that most of his clients affected by WEP and GPO had incorporated the reductions into their retirement planning.
“Restoring the benefit helps them, but they were already in good financial positions,” he said. While public employees, particularly those nearing retirement, are the clear winners under the new law, some experts argue that the Social Security Fairness Act could hurt Social Security’s finances. Alicia Munnell of the Center for Retirement Research at Boston College believes the law undermines fairness within Social Security’s progressive benefit formula and accelerates the depletion of the trust funds by about six months.
According to the Social Security Administration’s Office of the Chief Actuary, the depletion date for the Old-Age and Survivors Insurance (OASI) Trust Fund remains 2033, even after accounting for the Fairness Act. However, the combined OASI and Disability Insurance (DI) Trust Funds are now expected to be depleted by 2034, moving up one year from the previous estimate. The ongoing debate underscores the complexity of balancing fairness and financial sustainability within the Social Security program.
