Social Security Fairness Act
DecisionPoint Financial is thrilled to announce that on January 5th, the “Social Security Fairness Act” was signed into law! This law eliminates both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) for governmental employees and retirees who participate in a “non-covered” pension (i.e., LEOFF 2, PERS, etc).
Windfall Elimination Provision (WEP)
Prior to HR 82 being signed into law yesterday, many of you, who have earned a Social Security benefit through work outside of public service, have been subject to WEP. In 2024, those claiming Social Security benefits, who were subject to WEP, could have up to $587 per month deducted from their earned Social Security benefit.
With the passing of the Social Security Fairness ACT, WEP has been eliminated and all of you will now receive your full Social Security benefits going forward. For those already claiming Social Security, this new law will be retroactive as of January of 2024. For those who received Social Security benefits in 2024, you will be refunded the amounts deducted through WEP.
Government Pension Offset (GPO)
GPO affected a public servant's ability to collect up to half of a spouse’s, or ex-spouse’s Social Security benefit. The GPO has also been eliminated under this new law.
If you participate in a non-covered pension, but your spouse or ex-spouse has earned a Social Security benefit, you are now entitled to claim the greater of your full benefit, or half of a spouse or ex-spouse’s benefit.
IAFF Q&A
We want to give special thanks to the tireless work of the IAFF and their critical roll in bringing HR 82 across the finish line. We would refer you to their website for an excellent Q&A:
Social Security Benefit Statement
For those wishing to pull their most current Social Security Benefit statement, please go to:
Updating Your Financial Plan
If you would like to see what impact this change to your Social Security benefits may have on your overall financial plan, please contact DecisionPoint at 253-882-4143 to schedule a meeting with us in our Gig Harbor office or virtually via Zoom.
- Your DecisionPoint Financial Planning Team -