Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) will soon be no more.

After legislators took historic action to pass the Social Security Fairness Act in the final hours of Congress in late December, President Joe Biden signed the bill into law on Sunday, Jan. 5.

It’s now up to the Social Security Administration to begin implementing the changes.

Why it matters

The bill removes from federal law Social Security’s WEP and GPO, two provisions that can significantly reduce Social Security benefits for retirees who also receive retirement income from work that wasn’t covered by Social Security. In Colorado, most public employees do not contribute to Social Security and therefore faced reductions to any earned Social Security benefits under WEP and GPO if they or their spouse contributed to Social Security before or after their public sector employment.

Lawmakers had been trying for decades to remove or modify WEP and GPO, but those bills never made it to the floor of the House or Senate for a vote. The passage of the Social Security Fairness Act in 2024 marks a historic change; removing those two provisions means the public employees affected by them will no longer receive reduced Social Security benefits.

As written, the bill’s changes are effective for Social Security benefits payable starting in 2024 and beyond.

What does repeal mean for PERA members?

At this early stage, there are still a lot of questions about how the bill will be implemented. The Social Security Administration has not yet released any details on when or how any changes might take place. Visit ssa.gov for the latest information from the Social Security Administration.

It’s important to note the repeal of WEP and GPO does not affect a PERA retiree’s PERA benefit; the changes only apply to Social Security benefits. Any questions about Social Security benefits should be directed to the Social Security Administration.

Throughout the legislative process, much of the debate on the bill had to do with its cost—the Congressional Budget Office estimates it will require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected by WEP and GPO. That additional cost could also accelerate the depletion of the Social Security trust funds, which may add urgency to legislative efforts to shore up the program.

PERA On The Issues will continue to closely monitor this issue and provide updates when available. Be sure to subscribe to our biweekly newsletter and follow Colorado PERA on social media (we’re on Facebook, Instagram, and LinkedIn) for the latest information.