In December 2024, the U.S. Senate passed the Social Security Fairness Act (H.R. 82), which seeks to provide financial relief to public servants in California, including teachers, firefighters, and other government employees.
The bill repeals two provisions—Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—which have long reduced Social Security benefits for individuals who worked in non-Social Security-covered jobs while also receiving government pensions.
How the Repeal of WEP and GPO Impacts Californians
The repeal of these provisions is expected to affect approximately 290,000 retirees and 102,000 spouses in California.
Many of these individuals had their Social Security benefits reduced due to the combination of their government pension and work history in non-Social Security-covered jobs. Now, with the passing of the bill, they will receive the full benefits they’ve earned.
Key Benefits for Public Servants and Retirees
The most significant change brought about by the bill is the restoration of full Social Security benefits for retirees who had their benefits reduced under WEP.
This provision, introduced in 1983, penalized public servants such as teachers and first responders, who paid into Social Security but had their benefits limited because of their pensions.
Similarly, the repeal of the GPO will allow surviving spouses of government employees to receive full Social Security benefits without the reductions they previously faced.
Bipartisan Support and Legislative Journey
The bill passed the Senate with an overwhelming vote of 76-20 after being approved by the House with bipartisan support.
Senate leaders, including Alex Padilla and Adam Schiff from California, pushed for the bill’s passage to ensure fairness for workers who dedicated their careers to public service. The bill now awaits President Biden’s signature, expected in the coming days.
Fiscal Concerns: The Cost of Reform
While the bill has been celebrated for its potential to help public servants, it also has sparked concerns about its cost.
The Congressional Budget Office has estimated that repealing WEP and GPO will cost the Social Security system approximately $196 billion over the next decade.
Critics argue that this expenditure could worsen the financial outlook for Social Security, which is already facing a projected insolvency date of 2035.
What the Repeal Means for Surviving Spouses
In addition to the positive impact on retirees, the GPO repeal will benefit surviving spouses of public servants. Previously, surviving spouses who were entitled to Social Security benefits were often left with reduced or eliminated payouts if their spouse had a government pension. This reform ensures they will receive the full benefits they are entitled to.
The Long-Term Impact on Social Security’s Solvency
Despite the legislative victory for public employees, concerns about the long-term solvency of Social Security remain. The program’s trustees have warned that the system is at risk of running out of funds by 2035 unless significant reforms are made.
The new legislation, while beneficial for some, may exacerbate these concerns by accelerating the depletion of Social Security’s trust fund.
What’s Next: The Path Forward for Affected Beneficiaries
As the bill moves toward becoming law, those affected should review their Social Security statements to understand how the repeal of WEP and GPO will affect their benefits.
Beneficiaries are also encouraged to consult with financial experts to optimize their benefits under the new rules. While this bill brings fairness to many, ongoing discussions about Social Security’s future are critical to ensure its sustainability for all Americans.
