On January 5, 2025, the Social Security Fairness Act was signed into law, marking a historic shift in Social Security policy by repealing two longstanding provisions: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). These changes, effective for benefits payable after December 2023, have significant implications for surviving spouses, particularly those receiving teacher’s pensions. This article explores how the Act transforms financial security for these individuals.
Understanding the GPO and Its Repeal
The GPO previously reduced or eliminated Social Security survivor benefits for spouses receiving pensions from non-Social Security-covered employment, such as many public-sector jobs like teaching. The offset was calculated as two-thirds of the pension amount, often wiping out survivor benefits entirely. For example, a surviving spouse with a $3,000 monthly teacher’s pension faced a $2,000 reduction in their survivor benefit, potentially losing a $1,500 monthly Social Security payment from their deceased spouse’s record.
The Social Security Fairness Act eliminates the GPO, ensuring that surviving spouses can now receive their full Social Security survivor benefit—typically 100% of the deceased spouse’s benefit at full retirement age (66–67, depending on birth year)—without any reduction due to their pension. This change is retroactive for benefits after December 2023, meaning eligible survivors can claim back payments if they were previously affected.
Impact on Surviving Spouses with Teacher’s Pensions
Teachers’ pensions, common in states like California, Texas, and Illinois, often come from non-covered employment, where no Social Security taxes were paid. Under the old GPO rules, a surviving spouse with a substantial teacher’s pension (e.g., $8,000/month) would see their survivor benefit entirely offset, as two-thirds of their pension would exceed most Social Security payments. Now, with the GPO repealed, these survivors can receive their full survivor benefit, significantly boosting their income. For instance, a widow eligible for a $2,300 monthly survivor benefit can now receive it in full, alongside her teacher’s pension, without any reduction.
Broader Implications for Surviving Spouses
The Act benefits all surviving spouses, not just those with pensions. Those already receiving their own Social Security retirement benefit can now claim the higher of their own benefit or the survivor benefit, without GPO-related reductions. This is particularly impactful for lower-income survivors who rely on these funds for basic needs. The repeal also simplifies financial planning, as survivors no longer need to navigate complex offset calculations.
Next Steps for Affected Spouses
Surviving spouses should act quickly to take advantage of the new rules. They can apply for benefits or request a review of prior reductions through ssa.gov, by calling 1-800-772-1213, or visiting a local Social Security office. Retroactive payments may be available, but processing can take 3–5 months. Creating a mySocialSecurity account online provides access to benefit estimates and application tools.
A Step Toward Equity
The Social Security Fairness Act restores financial fairness for millions of surviving spouses, particularly public servants like teachers. By removing the GPO, it ensures that hard-earned pensions and Social Security benefits work together to provide greater economic stability, honoring the contributions of both spouses.
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This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.All views/opinions expressed in this article are solely those of the author and do not reflect the views/opinions held by Advisory Services Network LLC. Advisory Services offered through U.S. Asset Management, a member of Advisory Services Network, LLC.
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U.S. Asset Management is a family office offering investment management and financial planning services. We help clients make better decisions with their money and assist with overseeing every aspect of their financial lives. David Cross is a Certified Portfolio Manager, Investment Advisor Representative and David Cross is a CDFA® practitioner or Certified Divorce Financial Analyst® practitioner.
