Tim Hayes Discusses How the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) Can Potentially Affect Public Employees

BOSTON, MA — August 21, 2024 — It’s estimated that around 6% of state and local government employees are not covered by Social Security. According to the latest article from Financial Advisor Tim Hayes, 97% of public employees in Massachusetts and Ohio did not participate in the Social Security system in 2018. Meanwhile, Vermont only had 3% of employees not covered by Social Security.

The Windfall Elimination Provision (WEP) has been around since 1983 and affects public employees who received a pension from their employer but did not contribute to the Social Security system. Hayes explains how the Social Security system’s bend points can affect how the WEP impacts public employees.

The Government Pension Offset (GPO) also impacts the same public employees affected by the WEP. Whereas the WEP affects the employees’ earned social security benefits, the GPO impacts the spousal or widow(er) benefits of insured workers. Moreover, the GPO can reduce these benefits by two-thirds.

“In addition to getting your pension estimate from your state retirement system, do the same for Social Security, and if married, get your spouse’s Social Security benefit estimates,” Hayes advises.

About Tim Hayes: Tim Hayes is an independent financial advisor affiliated with Cambridge Investment Research Inc. He provides financial planning services, including wealth management, retirement planning, and insurance, for both local and national clients who are impacted by the WEP and the GPO.

Created by Geri Mileva.

Content provided via links to third-party sites should not be considered an endorsement of content that we cannot verify completeness or accuracy.