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 is a Certified Financial Planner™, founder and owner of Parkway Wealth Management, a comprehensive financial practice with a focus on women and families. Learn more about Ellen and Parkway Wealth Management at www.parkwaywealth.net. Investment advice offered through Private Advisor Group, a registered investment advisor.