Excerpt from the Winter 2025 Extension
If you are eligible to receive Social Security benefits in addition to an Ohio state public pension, the Social Security Administration (SSA) has some good news for you. In late February, SSA announced that it is beginning to pay retroactive benefits and will increase monthly benefit payments to people whose Social Security benefits have been affected by the Windfall Elimination Provision (WEP) and/or the Government Pension Offset (GPO).
On Jan. 5, President Joe Biden signed into law the Social Security Fairness Act, which overturned the two provisions that reduced Social Security benefits for some people who receive pension income from public-sector work where Social Security payroll taxes were not withheld. The Congressional Research Service estimates more than 230,000 Ohioans are in that group.
The Congressional Budget Office (CBO) has estimated the changes will result in higher monthly payments ranging up to $1,190, depending on individual circumstances. Most affected beneficiaries will begin receiving their new monthly benefit amount in April 2025 (for their March 2025 benefit).
The law also provides lump-sum payments for those benefit increases dating back to benefits payable for January 2024. If a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.
WEP and GPO were intended to prevent “double-dipping” by individuals receiving pensions from non-Social Security-covered employment while also collecting Social Security benefits. However, they often led to significant financial penalties for public-sector workers and their families.
WEP affects people receiving a public pension who are also eligible for Social Security benefits based on covered work they did outside the public sector. The prior law imposed a more restrictive formula in calculating their benefit, which will no longer apply.
GPO affects those receiving public pensions based on their own work who are spouses/widows/widowers (including divorced, if married 10 years and currently unmarried) of Social-Security-covered workers. Previously, two-thirds of the monthly amount of their public pensions would offset dollar-for-dollar against any potential Social Security spouse’s benefit. That offset, which sometimes reduced Social Security benefits to zero, will no longer apply.
A spouse may receive up to half of their spouse's Social Security benefit at full retirement age. A surviving spouse, at full retirement age, generally gets 100% of the worker's basic benefit amount. If you never applied for retirement benefits due to WEP or spouse’s or surviving spouse’s benefits because of GPO, you may need to file an application. The most convenient way to do that is online at www.ssa.gov/apply. If you are unable to create an account, call 1-800-772-1213 to verify the information SSA has on file.
The surviving spouse benefits application is not available online. For information about that benefit, you are advised to call 1-800-772-1213. When the system asks, “How can I help you today?”, say “Fairness Act.” Your answers will help SSA connect you to a WEP-GPO trained representative to take your application.
For current information about implementation of the Social Security Fairness Act, visit: www.ssa.gov/benefits/ retirement/social-security-fairness-act.html.
