By Money and Finance Editor Ellen Duffy, CFP™
Happy New Year!
Have you or your spouse been subject to reduced social security benefits because you have worked in different jobs over the years?
2025 got off to a great start for thousands of Massachusetts workers who feel they have been penalized due to their career paths. This is welcome news for employees who may have spent years in the private sector paying into the social security system and have also worked in a government role earning a public pension. For over 40 years, millions of public pension recipients have seen their Social Security benefits reduced or eliminated due to two sections of Social Security Law referred to as the GPO (Government Pension Offset) and the WEP (Windfall Elimination Provision.)
On January 5 ,2025, the Social Security Fairness Act, which repeals the GPO (government pension offset) and the WEP (windfall elimination provision) was signed into law. This legislation paves the way for teachers, firefighters, police officers, and other public sector workers who also receive pension income to potentially receive increases in their Social Security benefits.
Individuals with hybrid careers may have seen their social security benefit reduced by hundreds of dollars monthly. Retired surviving spouses of public servants may have been most impacted by the GPO often resulting in a 100% reduction, or total elimination of the social security benefits. After years of persevering, this legislation repealing the reduction in social security benefits was finally pushed through with bipartisan support. Now we wait for further details on implementation.
It is expected that it will take months for the Social Security Administration to calculate, adjust and administer the increase in benefits to millions of public workers. We continue to monitor and await additional details with interest. The Social Security Administration has a dedicated page for providing updates. Please find the link below.
Ellen Duffy CFP™ simplifies money and investing so that her clients feel confident about making decisions for their financial future. She is a Certified Financial Planner™ and owner of Parkway Wealth Management, an independent wealth management firm in Boston offering investment advisory and planning services. After spending 20 years in investment management with “downtown” firms, Ellen founded Parkway Wealth to serve clients in an authentic way and offer personal financial advice. Her business has a focus on women, helping women feel more confident and informed. Today, women have more responsibility for the financial well-being of the household than ever, yet despite this increased role and responsibility, many women feel uncomfortable talking about money and investing. Ellen works with clients to understand their questions, concerns, hopes, and fears. Financial planning is about freedom and choices. Ellen lives in West Roxbury with her husband Tim Turley and their three teenagers. An active community member, Ellen believes an integrated approach to “health, wealth, community” can build a strong foundation for a lifetime of financial well-being. (Investment advice offered through Private Advisor Group, a registered investment advisor.)
Health, Wealth, Community – It’s All Connected. Investment advice offered through Private Advisor Group, a registered investment advisor.