On January 5, 2025, the Social Security Fairness Act was signed into law. Upon implementation, this eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). This means that over 3 million Americans, including teachers, firefighters, police officers, and public servants, will now be eligible to receive full retirement benefits.
Previously, public sector employees faced differences in Social Security and retirement planning compared to those in the private sector. The WEP and GPO were put in place to prevent higher benefits for non-covered pension recipients and ensure equal spousal benefits for those with covered or non-covered earnings.
The elimination of the WEP and GPO will take effect for benefits payable after December 2023. If you were previously impacted by WEP/GPO, this means that your earnings history will no longer be discounted, and you will receive full credit for your public sector work.
Do you need help understanding how these changes may benefit you? Connect with a CFS* Financial Advisor at UMassFive today.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. UMassFive College Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.