Photo credit: jb

In what some, including myself, may find a surprising move, recently Congress approved a measure to completely eliminate the Government Pension Offset and Windfall Elimination Provision. The President has signed this bill into law.

What this means is that there is no longer a reduction factor for Social Security benefits (including Spousal and Survivor Benefits) if you are receiving a pension based on work that was not subject to Social Security taxation. 

Let’s go over each provision briefly to review what is changing.

WEP (Windfall Elimination Provision)

The WEP was originally put into place as a measure to eliminate a perceived “windfall” that would otherwise occur without it. 

The design of the Bend Point calculations for determining an individual’s own retirement benefit is meant to provide significantly higher replacement rates for lower income individuals. As such, the first Bend Point of average lifetime income ($1,226 for 2025) 

Keep reading this article on Financial Ducks In A Row.