Social Security Announces Timeline for Benefit Increases for Individuals Affected by GPO and WEP
On February 25, 2025, the Social Security Administration (SSA) announced the timeline for paying retroactive and increased benefits for individuals who were impacted by the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). According to the SSA:
- Most people will receive their one-time retroactive payment by the end of March for any benefits withheld since January 2024. This payment will be deposited in their bank of record with the SSA.
- Increased monthly benefits without the GPO or WEP adjustment are scheduled to begin with the April benefit payment.
- Anyone who will receive a retroactive payment or whose benefit will be adjusted will receive a mailed notice from the SSA explaining the change, with most people receiving the retroactive payment 2-3 weeks after the notice.
For more information, please refer to the link below:
Background Information
On January 5, 2025, President Biden signed into law the Social Security Fairness Act, which eliminated WEP and GPO provisions that affected about 3 million individuals. WEP and GPO were put in place in the early 1980s to reduce Social Security benefits to individuals who were receiving pensions from employment that was not subject to Social Security payroll tax, generally public sector workers such as police, firefighters and teachers. WEP reduced the individual’s Social Security retirement or disability benefit, while GPO reduced the spousal or survivor benefit.
What is the potential impact of these changes to the future of Social Security?
Based on Congressional Budget Office (CBO) estimates, the elimination of GPO and WEP expected to increase the federal deficit by $196 billion. It also could accelerate Social Security’s insolvency by six months, which is estimated to occur in 2033 and would result in a 21% reduction in benefits.
Ultimately, we believe steps can and will be taken to ensure Social Security remains on solid footing. But keep in mind Social Security was never designed to provide for all your income in retirement. Talk with your Edward Jones financial advisor about the role Social Security can play as part of your retirement strategy.
Scott Thoma
Scott Thoma co-chairs Edward Jones’ Investment Policy Committee and is responsible for Client Needs Research, the team that develops and communicates advice and guidance for client needs, including retirement, education, preparing for the unexpected and leaving a legacy.
He is a CFA® charterholder and a member of the CFA Institute and the CFA Society of St. Louis. Scott also earned the CFP® professional designation. He graduated summa cum laude from Southern Illinois University-Edwardsville with a bachelor’s degree in business administration, with an emphasis in finance. Scott earned a master’s degree in economics and finance from the same university.
Important information:
*Source: The Wall Street Journal
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