December 21, 2024 — For Immediate Release

In a landmark decision, the U.S. Senate has passed H.R. 82, the Social Security Fairness Act of 2023, with a resounding bipartisan vote of 76-20. This legislation repeals two provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that have long reduced Social Security benefits for public servants and retirees receiving pensions from non-Social Security-covered employment.

The bill, previously approved by the House of Representatives with an overwhelming bipartisan vote of 327-75 on November 12, 2024, now heads to President Joe Biden’s desk for final approval. His signature is anticipated within the next few days.

Once signed into law, this legislation will bring long-awaited relief to millions of Americans by restoring fairness to the Social Security system.

Understanding the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)

The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) have been contentious components of Social Security for decades. These provisions primarily impact public servants, such as teachers, firefighters, and police officers, who worked in positions not covered by Social Security.

• WEP:
  Introduced in 1983, the WEP reduces the Social Security retirement and disability benefits for individuals who also receive a pension from non-Social Security-covered employment. This reduction often resulted in significantly lower monthly payments, creating financial strain for retirees.
• GPO:
  The GPO reduces spousal and survivor benefits for individuals receiving government pensions. For many widows and widowers, this provision has led to severe financial challenges, as it drastically reduced or even eliminated benefits they were otherwise entitled to.

Together, these provisions have impacted millions of public servants, penalizing them for careers dedicated to serving their communities.

Key Impacts of H.R. 82

The passage of H.R. 82 will bring transformative changes to Social Security, ensuring fairness and equity for beneficiaries.

1. Repeal of WEP:
   • Restores full Social Security retirement and disability benefits for individuals who receive pensions from non-Social Security-covered employment.
   • Particularly beneficial for public servants like teachers, firefighters, and police officers who have been disproportionately affected by this provision.
2. Repeal of GPO:
   • Ensures that spousal and survivor benefits are no longer reduced for individuals with government pensions.
   • Provides financial stability for surviving spouses who previously faced severe benefit reductions.
3. Retroactive Payments:
   • Beneficiaries impacted by the WEP and GPO will receive retroactive payments for benefits lost during the period starting after December 2023.
   • This retroactive component ensures eligible recipients are fully compensated for the delays caused by the now-repealed provisions.
4. Effective Date Clarification:
   • The amendments made by H.R. 82 will apply to monthly Social Security benefits payable for months after December 2023.

Who Will Benefit?

The Congressional Budget Office estimates that approximately 2.5 million retirees will see their benefits increase as a result of this legislation.

States with significant numbers of public servants and non-Social Security-covered pensions are expected to experience the greatest impact, including:

• Alaska, California, Colorado, Connecticut, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, Rhode Island, and Texas.

Financial Implications and Concerns

While H.R. 82 has been widely celebrated for addressing longstanding inequities, it has sparked concerns about its fiscal impact. The Congressional Budget Office projects that repealing the WEP and GPO will cost approximately $196 billion over the next decade.

This significant expenditure is expected to accelerate the depletion of the Social Security Trust Fund by six months, heightening the urgency for broader Social Security reform.

“This is a momentous occasion for Social Security fairness,” said Martha Shedden, President of RSSA. “As valuable as this bill is for a small group of beneficiaries, it underscores the need for comprehensive reforms to ensure the long-term solvency of the Social Security program.”

RSSA’s Commitment to Advisors and Beneficiaries

As thought leaders in Social Security education and planning, RSSA is committed to ensuring that advisors and beneficiaries have the tools and knowledge needed to navigate these historic changes.

1. Educational Program Updates:
   • The RSSA Educational Program will be updated in January 2025 to include comprehensive details about the repeal of WEP and GPO.
   • This ensures that Social Security professionals remain informed and equipped to assist their clients effectively.
2. RSSA Roadmap Updates:
   • The RSSA Roadmap software will be updated to reflect the legislative changes, providing advisors and beneficiaries with accurate and actionable guidance.

What’s Next for Beneficiaries?

With the Senate’s approval and President Biden’s expected signature, beneficiaries are encouraged to take the following steps:

1. Review Your Social Security Statements:
   • Understand how the repeal of WEP and GPO may impact your current or future benefits.
2. Consult with a Registered Social Security Analyst (RSSA):
   • RSSAs are uniquely qualified to provide personalized guidance and help beneficiaries maximize their Social Security benefits under the new rules.

The passage of H.R. 82 represents a historic milestone in Social Security reform, bringing long-awaited relief to millions of Americans. However, it also underscores the need for continued efforts to address the program’s broader fiscal challenges.

At RSSA, we will continue to monitor this development closely and provide timely updates to advisors and beneficiaries. Stay informed and let us help you navigate the evolving Social Security landscape.

For questions or further updates, contact:
RSSA Media Relations
Pamela Kweller
media@rssa.com