The Social Security Windfall Elimination Provision and Retirement with a Federal /State Pension

By Brandon Clark, CPA

Are you retired with a Federal CSRS or state pension?

If so, read on - you may be affected by the Social Security Windfall Elimination Provision (WEP). Recent legislation signed into law in January could entitle you to an increased Social Security benefit.

The WEP affects the following people who receive pensions:

• teachers, firefighters, and police officers in many states;

• federal employees covered by the Civil Service Retirement System )CSRS); and

• people whose work had been covered by a foreign social security system.

In January the Social Security Fairness Act passed thereby ending the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits of those who receive a pension based on work that was not covered by Social Security.

As a result of the law that eliminates WEP, you may be entitled to a Social Security benefit that was previously reduced or disallowed. Typically previously disallowed benefits would be based on your social security record (for work you did that was subject to social security tax) or a spouse’s.

Next steps – The Social Security Administration will determine eligibility and began issuing benefits February 25, 2025.

Contact social security online or by phone to ensure your payment information is on file SSA is computing and processing benefits for affected based on your and your spouse’s social security records.

• If you know that SSA has your mailing address and/or direct deposit information on file, no other action is needed currently. Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.

• If you want to verify that the mailing address and/or direct deposit information that SSA has on file is accurate and up to date:

• Check your personal my Social Security account. Visit www.ssa.gov/my account to sign in or create an account.

• If you are not sure whether you ever applied for retirement, spouse’s, or surviving spouse’s benefits, you may need to file an application. The date of your application might affect when your benefits begin.

• To follow updates on SSA’s progress with increasing benefits go to SSA’s WEP GPO update page here: https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2