Excerpt from the State Teachers Retirement System Newsroom
On Jan. 5, President Biden signed the Social Security Fairness Act into law. This action repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO); two provisions that previously impacted some STRS Ohio members’ and their spouses’ eligibility for Social Security benefits. STRS Ohio and its’ members have advocated for the passage of this legislation and the fair treatment it promotes for those who have contributed to Social Security and to a public retirement system such as STRS Ohio.
WEP and GPO have impacted employees who contribute to a public retirement system, such as STRS Ohio, in lieu of Social Security, but who also have contributed to Social Security through non-public employment. A retiree of STRS Ohio who is also eligible to receive a Social Security benefit has had their Social Security benefit reduced by WEP because they receive a retirement benefit from STRS Ohio. GPO affects STRS Ohio retirees by reducing their Social Security spousal, widow or widower benefit. The reduction equals two-thirds of the benefit the retiree receives from STRS Ohio.
The Windfall Elimination Provision, enacted in 1983, reduces the Social Security benefits of workers who receive pensions from a federal, state, or local government for employment not covered by Social Security. The Government Pension Offset (GPO), enacted in 1977, reduces Social Security spousal benefits for spouses, widows, and widowers whose spouses receive pensions from a federal, state, or local government.
The legislation is effective for all monthly insurance payments made after December 2023. The implementation of the Social Security payment changes will be handled by the Social Security Administration (SSA). It is unclear how quickly the SSA will be able to begin making payments that reflect this repeal.
For updates about the implementation of the Social Security Fairness Act, visit the SSA website. You can also subscribe for email updates.
