The New Social Security Fairness Act Benefits PERA Recipients

A Landmark Change for Retirees

On January 5, 2025, a significant victory was achieved for millions of retired public servants across the nation with the signing of the Social Security Fairness Act. This landmark legislation repeals two long-standing provisions – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – that have reduced Social Security benefits for many dedicated individuals who served their communities.

Background

For decades, the WEP and GPO have created a complex system for public employees, including teachers, firefighters, police officers, and many others. These individuals often work for employers that do not participate in the Social Security system, such as state and local governments.

• The Windfall Elimination Provision (WEP): This provision significantly reduced Social Security benefits for individuals who had limited Social Security work history alongside a pension from a non-Social Security covered job. This often resulted in low Social Security payments despite years of dedicated service and contributions.
• The Government Pension Offset (GPO): This provision impacted married couples where one spouse received a pension from non-Social Security covered employment. The GPO could reduce or even eliminate the surviving spouse's Social Security benefits, creating significant financial hardship.
• Note: The repeal of the WEP and GPO only affects Social Security benefits. It does not impact PERA retirement benefits.

Years of Advocacy

The fight to repeal the WEP and GPO has been a long journey. Public employee organizations, including the Public Employees' Retirement Association (PERA) in Colorado, have advocated for years on behalf of their members. The signing of the Social Security Fairness Act marks a significant turning point. This bipartisan legislation represents a victory for millions of retired public servants. By repealing the WEP and GPO, the Act ensures that these individuals receive the Social Security benefits they earned.

What Does This Mean for PERA Members?

For PERA members, the repeal of the WEP and GPO has a direct and positive impact:

• Increased Social Security Benefits: Many PERA members may now receive significantly higher Social Security benefits, providing much-needed financial security in retirement.
• Recognition of Service: The repeal acknowledges the valuable contributions of public servants to their communities and ensures that their retirement security is not unfairly diminished.
• Peace of Mind: This legislation provides peace of mind to PERA members and their families, knowing that their hard-earned benefits will be protected.

What should I do next?

If your Social Security retirement benefits have been reduced due to the WEP or GPO offset, the Social Security Administration provides the following guidance on their website:

At this time, you do not need to take any action except to verify that we have your current mailing address and direct deposit information if it has recently changed. Most people can do this online with their personal my Social Security account without calling or visiting Social Security. Visit www.ssa.gov/myaccount to sign in or create your account. We will provide ongoing updates regarding implementation on this page.

Disclaimer: This blog post is for informational purposes only and should not be construed as legal or financial advice.