Why It Matters
A recent Congressional Research Service (CRS) report examines the rollout of the Social Security Fairness Act of 2023, which was signed into law on Jan. 5, 2025. The legislation repealed two provisions that had reduced benefits for millions of workers: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). These rules had cut Social Security or railroad retirement benefits for workers and eligible family members who received pensions from state and local government jobs not covered by Social Security. About one-quarter of state and local government employees covered by alternative staff retirement systems were among the two largest groups affected by the GPO and WEP.
The Big Picture
The WEP reduced retirement and disability benefits by substituting the normal 90 percent replacement factor with 40 percent for those with fewer than 30 years of substantial covered earnings. The GPO operated differently, reducing spousal or widow(er) benefits for most people who also received government pensions not covered by Social Security.
Lawmakers regularly introduced bills to repeal or modify these provisions over more than four decades before the Fairness Act passed. The legislation applies to monthly benefits payable after December 2023 and did not amend the six-month retroactivity limit on benefit applications.
The Congressional Budget Office estimated the act would increase direct spending by approximately $198 billion over fiscal years 2024 through 2034. The Board of Trustees' 2025 annual report estimated the law increased the net long-term cost by 0.14 percent of taxable payroll.
The Bottom Line
Current workers who have work experience in jobs not subject to the Social Security payroll tax will no longer have any future Social Security or railroad retirement benefits reduced by the GPO or WEP.
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