📋 What is the Windfall Provision for Social Security? (AARP Article - updated)

[SpringIsHereVA]

FROM THE ARTICLE:

What is the Windfall Elimination Provision?

By Andy Markowitz and Phil Pruitt, AARP.

*** There are 119 Comments on the AARP website. Stop by to add yours. ***

Published October 10, 2018.

➡️ Updated February 27, 2025. ⬅️

The Windfall Elimination Provision (WEP) was a formula that could reduce the size of your Social Security retirement or disability benefit if you also received a pension from a job in which you did not pay Social Security taxes. Congress voted in December 2024 to repeal the WEP, ending benefit cuts for those receiving such “non-covered” pensions.

The repeal law, the Social Security Fairness Act, is retroactive to benefits paid for 2024, which means people previously subject to the WEP will receive a lump-sum repayment of the benefits withheld during that year. The Social Security Administration (SSA) says it expects to deliver the retroactive payments to most affected beneficiaries by the end of March 2025, with higher monthly benefits starting in April, but some more complex cases may take longer to resolve. Updates on implementing the act can be found on the Social Security website.

USE LINK BELOW TO READ THE ARTICLE: https://www.aarp.org/social-security/faq/what-is-the-windfall-elimination-provision/

[GailL1]

You know what, @SpringIsHereVA, I cannot believe that there is not more outcry about this elimination of the WEP/GPO - are you upset about it?  I am.

An acquaintance of mine gets about $ 6000 a MONTH from her government pension.  She NEVER worked under the Social Security System but her husband did and he was a pretty high earner - but he died and she was not able to get any Survivors benefits because her government pension was so large it just zeroed it out.  

Now she has applied for her Survivors benefits since the elimination of the WEP/GPO - she will now get a benefit of $ 4000+ a month added to her pension + the amount of her retro-active pay which she got a few days ago was $ 42,000.00.

I agree that the WEP/GPO formula needed tweaking and there were several pieces of legislation that had already figured it out but these were passed over by our Congress for no other reason that to appease these government workers (and their unions) with a full elimination of the WEP/GPO - 

We have a problem - and that problem is gonna hit in just a matter of a few years - and it has nothing to do with who might be our President then or even in the meantime.  

[SpringIsHereVA]

@GailL1 , unfortunately getting upset over the change will NOT change anything. I just hope I die BEFORE my Retirement Social Security Payments get either reduced or eliminated. Some humans are SO GREEDY!!! I have ONLY my Retirement Social Security. Oh well!!  🙄  NO comment on the other stuff and I hope AARP will leave this discussion alone = NO politics was involved in original post.  👍 Take care, Nicole  👵

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[*** @GailL1 wrote:

You know what, @SpringIsHereVA, I cannot believe that there is not more outcry about this elimination of the WEP/GPO - are you upset about it?  I am.

An acquaintance of mine gets about $ 6000 a MONTH from her government pension.  She NEVER worked under the Social Security System but her husband did and he was a pretty high earner - but he died and she was not able to get any Survivors benefits because her government pension was so large it just zeroed it out.  

Now she has applied for her Survivors benefits since the elimination of the WEP/GPO - she will now get a benefit of $ 4000+ a month added to her pension + the amount of her retro-active pay which she got a few days ago was $ 42,000.00.

I agree that the WEP/GPO formula needed tweaking and there were several pieces of legislation that had already figured it out but these were passed over by our Congress for no other reason that to appease these government workers (and their unions) with a full elimination of the WEP/GPO - 

We have a problem - and that problem is gonna hit in just a matter of a few years - and it has nothing to do with who might be our President then or even in the meantime.  ***]

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[GailL1]

Some other great stats.[NOT- 🤪

The Social Security Administration (SSA) has already paid billions of dollars in retroactive benefits to those affected by the repeal of WEP and GPO, with the average retroactive payment being $6,710

Total cost of the retro payments estimated by the CBO to cost the Trust Fund $200 BILLION over (10) years.  but they could not give an estimate on those who just had never filed for the benefit because they knew at the time it was fruitless to do so BUT NOW . . . . . they can file and reap the benefits.

Congress had the option of tweaking the WEP/GPO formula but instead they completely eliminated it.  

What the experts are saying about this reversal of a formula that helped save the Social Security Trust Fund in 1983 now will do it harm and at a time when the Trust Fund is already struggling because Congress fails to act.

Newsweek 01/07/2025 Will the Social Security Fairness Act Bankrupt SSA Trust Funds?

from the link ~

This major legislation restores full benefits to public sector retirees previously impacted by the WEP and GPO provisions. Biden stated the measure will raise Social Security benefits by an average of $360 monthly for 2.8 million recipients.

Jeffrey Liebman, Harvard Kennedy School Professor and Economist Who Worked on Social Security Policy for Presidents Clinton and Obama

It won't bankrupt Social Security, but it is a poorly crafted piece of legislation. There are better ways to spend $200 billion to support public sector employees and better ways to spend $200 billion to make Social Security more equitable.

Sylvester J. Schieber, Former Chairman, Social Security Advisory Board

The legislation will increase expenditures without increasing revenues. Thus, it will shorten the time until the trust fund is depleted. It is fairly small potatoes in the larger financing outlook.

The larger problem with the legislation is it gives workers who earn salaries not covered by Social Security disproportionately generous benefits compared to workers covered under the system for all their earnings.

It is an example of a well-organized special interest group claiming to be victims of unfair treatment in order to be treated more generously by public policy than 98 percent of other U.S. workers.

.. . .Unfortunately, Congress' willingness to boost benefits for some, without dealing with the system's inability to pay future benefits for all, foreshadows the continued inability of governing body to confront and solve the program's deep and ongoing red ink.

Charles Blahous, J. Fish and Lillian F. Smith Chair and Senior Research Strategist, Mercatus Center, George Mason University

The misnamed Social Security Fairness Act was grossly irresponsible legislation, even before considering its effect of weakening Social Security's finances.

Though the GPO and WEP were imperfect and widely misunderstood, some version of these mechanisms remains necessary.

Without the GPO, Social Security will mistake a spouse with their own state pension for a nonworking spouse, and mistakenly pay them a nonworking spouse benefit.

Without the WEP, Social Security will mistake someone with several years of higher-income state employment for a much-lower-income worker, and pay them an unintended benefit windfall.

The fact that this legislation will hasten Social Security's insolvency by giving a subset of workers additional benefits beyond those toward which they contributed payroll taxes only compounds the damage.

An exodus of responsible legislators from Congress enabled the passage of this law, and a re-emergence of responsible legislators will be needed to clean up the mess.

more at the link ~

Yea, Congresscritters are really looking out for Social Security beneficiaries - 

[SpringIsHereVA]

@GailL1 , glad you stopped by as I have a quick question. As usual NO pressure to respond.

Does Congress pay into Social Security?  🤔

Take care,

Nicole  👵

[GailL1]

@SpringIsHereVA 

Yes, since 1984.  An Amendment was added to the Social Security law in 1983 that brought Congress and all federal employees into the Social Security System - but Federal workers were given a choice of which system they wanted to remain with for their remaining tenure.  Today all Federal employees, including Congress, pay into the SS system.

The ONLY government employees that don’t pay into the SS system are SOME state and local government employees - the decision is make by the state or local government.  But once they select to be included in the SS system, there is no going back.

One of the proposals to help fix the SS Trust Fund solvency is to make ALL state and local government employees to be covered under the SS system.  This could curtail their government pension - all or only somewhat.  Of course, there would be a marked date of participation and probably for a while they might be given choice like was done in the case of Fed employees in 1984. 

[jackie0112]

I am surprised no one else has brought this subject up concerning the WEP pass. Many years ago my spouse was injured on the job.  Drew Workers Compensation. Had a settlement and has never been employed again. Since he got a settlement the WEP cut his Social Security benefit by almost $400 per month. I recently inquired Social Security asking about the WEP hoping it wasn't just for Federal Employees. Yes he has paid in his working duty through the years. He doesn't qualify so in time I wouldn't receive that in survivors benefit. Am I wrong thinking this is not fair? I am considering contacting local government to get more clarity.

[GailL1]

@jackie0112 

I believe you are talking about your husband’s Social Security Disability benefit being reduced because he got Workman’s Comp settlement money.  

SSA.gov - How Workers’ Compensation and Other Disability Payments May Affect Your Benefits 

Similar but different since Workman’s Comp affects SSDI and the WEP/GPO affected Retirement benefits and Workman’s Comp and SSDI are both PUBLIC disability benefits. AND the reduction ceases when your husband reached his FRA and went on Social Security Retirement.  

For full disclosure, I did NOT support the elimination of the WEP/GPO - I thought that there was need for a revised formula which some legislators did introduce but they opted for a full elimination of the provision that is going to cost the Social Security Trust Fund dearly.  

However, this type of reduction (SSDI & Workman’s Comp) only last until the beneficiary reaches FRA and goes from SSDI to Social Security Retirement.  I am hoping that this has happened or will happen when he reaches FRA.

[SpringIsHereVA]

[Wednesday 4/2/25]

Jackie @jackie0112 , IF I was you I would give it a try. Maybe by asking CHANGES may be made.

YOU WROTE: Am I wrong thinking this is not fair? I am considering contacting local government to get more clarity.

Good Luck,

Nicole  👵

[GailL1]

@SpringIsHereVA 

Sometimes the answer is there and one just has to look it up.

[SpringIsHereVA]

[Wednesday 4/2/25]

@GailL1 having compassion and patience for people who stop by to either voice an opinion or ask for help is the reason AARP created this Community Board. Maybe some people DO NOT know how to LOOK THINGS UP or may have "vision" issues or NO internet. Whatever their "reason" is for POSTING ON THIS SITE is not my place to judge them. Not sure WHY you felt a need to post this to my attention.  🙄  Take care, Nicole  👵

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[*** @GailL1 wrote 4/2/25:

@SpringIsHereVA 

Sometimes the answer is there and one just has to look it up. ***]

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[GailL1]

@SpringIsHereVA 

Why not you ?  In fact, many times one can just search the AARP or SSA website and find exactly the answer then you give the person the info and they can go from there.

You are smart, you seem to have the time and want to help - 

AARP.org 03/22/2021- Can I file for Social Security disability if I'm on workers' compensation? 

[SpringIsHereVA]

[Wednesday 4/2/25]

@GailL1 , you missed my point entirely.

(1) I am NOT part of the Social Security Staff that is in place to HELP folks with THEIR Social Security Questions = that is WHO I call with my "personal" Retirement Social Security.

(2) I AGREED withJackie @jackie0112 and so NOT interested in resolving any Social Security Issues.

(3) Secondly I DONOT have the time = too BUSY in my real life. HAPPY Wednesday, Nicole  👵

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[*** @GailL1 wrote 4/2/25:

@SpringIsHereVA 

Why not you ?  In fact, many times one can just search the AARP or SSA website and find exactly the answer then you give the person the info and they can go from there.

You are smart, you seem to have the time and want to help - 

AARP.org 03/22/2021- Can I file for Social Security disability if I'm on workers' compensation? ***]

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[SpringIsHereVA]

Thanks @GailL1 . Another question from your reply.

➡️  YOU WROTE:The ONLY government employees that don’t pay into the SS system are SOME state and local government employees - the decision is make by the state or local government.

➡️  MY QUESTION: If Social Security is still around when the ABOVE FOLKS "retire" - do they NOT get payments or do they?

Take care,

Nicole  👵

[GailL1]

@SpringIsHereVA wrote:

MY QUESTION: If Social Security is still around when the ABOVE FOLKS "retire" - do they NOT get payments or do they?

+++++++++++++++++++++

If they have never paid into Social Security during their working careers as some state and local employees - then they do not get any retirement benefits based on their own record.  But WILL get any benefits they are due as a Spouse or as a Survivor now that the WEP/GPO has been eliminated IF their spouse (Spousal benefits) or the deceased (Survivors benefits) was eligible for Social Security Retirement or Survivors benefits.   

[SpringIsHereVA]

Thanks again @GailL1 . So I assuming if their spouse/survivor setup would ALSO mean zero payments IF spouse DIDNOT pay into Social Security. Was NOT sure with the changes for this year 2024.

YOU WROTE: If they have never paid into Social Security during their working careers as some state and local employees - then they do not get any retirement benefits based on their own record. But WILL get any benefits they are due as a Spouse or as a Survivor now that the WEP/GPO has been eliminated.

Take care,

Nicole  👵

[GailL1]

@SpringIsHereVA wrote:  

So I assuming if their spouse/survivor setup would ALSO mean zero payments IF spouse DIDNOT pay into Social Security. Was NOT sure with the changes for this year 2024.

——————————————-

 Thought it was Self explanatory when I said  “But WILL get any benefits they are due as a Spouse or as a Survivor” 

But I have changed my 1st response to you by adding some specifics - like this:

But WILL get any benefits they are due as a Spouse or as a Survivor now that the WEP/GPO has been eliminated IF their spouse (Spousal benefits) or the deceased (Survivors benefits) was eligible for Social Security Retirement or Survivors benefits.

[SpringIsHereVA]

Yes @GailL1 , it was self explanatory and pardon those of us who are NOT the expert you are. This comment was really offensive but I am used to this. My 2nd question you just answered below. Now I am finished with "pestering" you. Thanks for info!!!

YOU WROTE: Thought it was Self explanatory when I said “But WILL get any benefits they are due as a Spouse or as a Survivor” But I have changed my 1st response to you by adding some specifics - like this: But WILL get any benefits they are due as a Spouse or as a Survivor now that the WEP/GPO has been eliminated IF their spouse (Spousal benefits) or the deceased (Survivors benefits) was eligible for Social Security Retirement or Survivors benefits.

Take care,

Nicole  👵