WEP and GPO Repeal: What It Means for Massachusetts Public Employee Social Security Benefits
By Tim Hayes, Financial Advisor for the Public and Not-for-Profit Sector
A once-in-a-generation change. With the Social Security Fairness Act (H.R. 82, January 5, 2025), benefits lost to WEP and GPO were restored retroactively to January 2024. Understand how this reshapes your lifetime income.
Why Understanding Social Security is Now Critical for You
Social Security can be a confusing program in terms of individuals and couples deciding when to take benefits because the longer you wait, the bigger the benefit, and the timing of when each spouse takes their benefit can impact the survivor benefit.
Because these two laws reduced or eliminated many public employees’ Social Security benefits, many public employees have yet to pay much attention to Social Security. They must learn more about the program now, so they can coordinate their Social Security decisions with their state pension options and their spouses’ Social Security choices, if applicable.
Social Security Fairness Act 2025: Full WEP and GPO Repeal for Public Employees
The Social Security Fairness Act, signed in 2025, fully repealed the WEP and GPO — restoring full Social Security benefits that were previously slashed.
With pension and full Social Security now secured, expensive annuity guarantee riders may no longer be necessary. Tim will help you evaluate whether your current annuity structure still makes sense and realign your 403(b) strategy accordingly.
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Note: In some states like GA, KY, RI, and TX, Social Security participation depends on your specific school district.
How the Repeal Directly Boosts Your Retirement Income
As a result of the Windfall Elimination repeal, your earned Social Security benefit will double—a significant boost to your retirement income. Additionally, the Government Pension Offset repeal may make you eligible for a spousal benefit, which can be up to half of your spouse’s Social Security benefit. This means that your total retirement income could increase substantially, providing a sense of financial security and optimism for your retirement years.
Spousal Benefits: A Key Rule to Understand
It’s important to understand that you qualify for a spousal benefit regardless of whether you meet the 40 quarters requirement. (If married for ten years) However, you won’t receive both your benefit and the spousal benefit; instead, you’ll get the higher of the two.
Spousal Benefit (Assumes your full retirement age is 67)
| Your Age | % of Your Spouse’s Full Retirement Benefit |
|---|---|
| 62 | 32.50% |
| 63 | 35% |
| 64 | 37.50% |
| 65 | 43.66% |
| 66 | 45.83% |
| 67 | 50% |
Your pension and Social Security now need to be coordinated — here’s how to make sure you’re getting the most from both →
The Old GPO Rule: A Concrete Example
Previously, you were required to deduct two-thirds of your pension from your spousal or survivor benefit. For example, if your pension was $65,000, two-thirds of that amount would be $43,000. Unless your survivor or spousal benefit exceeded $43,000, the Government Pension Offset would reduce it by the entire amount.
How Social Security Calculates Your Payment
Here’s an interesting fact about Social Security: They always pay you the benefit you’re entitled to, and if you’re eligible for a spousal benefit, that amount is added on top. For example, if you qualify for an $800 benefit based on your work history and a $1,300 spousal benefit, Social Security will pay you your $800 benefit and add $500 from the spousal benefit, resulting in a total of $1,300. However, if you take your Social Security earlier than your full retirement age (FRA), both your benefit and your spousal benefit get reduced.
Social Security % of Full Retirement Benefit by Age
| 62 | 70% |
|---|---|
| 63 | 75% |
| 64 | 80% |
| 65 | 86% |
| 66 | 93% |
| 67 | 100% |
| 68 | 108% |
| 69 | 116% |
| 70 | 124% |
Special Considerations: Spouses, Survivors, and Life Changes
Rules for Surviving Spouses
If your spouse passes away, the spousal benefit bumps up to the full amount your spouse was receiving. Again, you get that or your benefit, whichever is higher.
Surviving spouses can take their spousal benefit and allow their benefit to increase to age 70, then switch to their benefit. Sometimes, they can even reverse the order of when to take which benefit. This flexibility can be a valuable tool in managing your retirement income, giving you more control over your financial future.
Impact of Divorce on Your Benefits
Divorced spouses who are not remarried or who married after age 60 and were married for at least 10 years are also eligible for spousal and survivor benefits.
How Marriage Affects Your Planning
Getting married can be a beneficial financial strategy for public employees in long-term relationships with those who are not public employees or for public employees who have earned a spousal benefit previously affected by the Government Pension Offset. You only need to be married for one year to be eligible for spousal benefits.
Of course, if the public employee had been married for at least ten years, they are already eligible for a spousal benefit, and getting remarried jeopardizes that benefit.
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Planning Insight for Your State Pension
Eligibility for a Social Security survivor benefit for a public employee may influence whether you provide your spouse with a survivor benefit from your state pension. Again, understanding the rules is key to proper planning.
Review My Pension/SS Coordination
With the repeal of these two laws, if you are close to retiring, let’s meet next month to discuss your options. If you are already retired, we should do that as well. This repeal is a significant event that will impact your retirement planning. It’s crucial to be prepared and to take proactive steps to understand and manage these changes, empowering you to take control of your financial future.
If you are further away from retiring, meeting sometime this year to discuss how the repeal could influence your retirement planning would also be a good idea. (The one exception is if you are getting divorced, in which case meeting soon is essential regardless.) Even if retirement is a few years away, understanding these changes early can help you make informed decisions about your future.
Social Security Guidance for a Public Employee
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A Brief Background: What Were the WEP & GPO?
These two laws, passed in the late 1970s and early 1980s, reduced the Social Security benefits for public employees who receive a pension from work where they did not contribute to Social Security.
The Windfall reduces any benefit you may have earned from work you did in jobs other than Massachusetts public employment. The Government Pension Offset reduces any spousal or survivor benefit.
About Your Guide: Tim Hayes, Fiduciary Financial Advisor
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These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice. Content provided via links to third-party sites should not be considered an endorsement of content that we cannot verify completeness or accuracy of.