California is among the biggest winners following the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), thanks to a new law aimed at increasing Social Security benefits for public-sector workers.
With the passage of the Social Security Fairness Act, retirees who were previously affected by these provisions will now see higher monthly benefits and may also receive back payments retroactive to January 2024.
The Impact of WEP and GPO
The Windfall Elimination Provision (WEP) was introduced in 1983 to reduce Social Security benefits for retirees who had pensions from jobs not covered by Social Security. Similarly, the Government Pension Offset (GPO)—enacted in 1977—reduced spousal and survivor benefits for those with government pensions outside the Social Security system.
While both measures were meant to prevent “double-dipping,” critics argued they unfairly penalized public-sector workers who also contributed to Social Security through separate jobs or spousal benefits.
California’s Unique Position
California stands to gain significantly from the repeal because of its large population of public employees not covered by Social Security. Nearly 54% of state and local government workers in California fall into this category—far above the national average of 27%.
Groups most affected include:
- Teachers who pay into CalSTRS instead of Social Security
- Police officers, firefighters, and other public workers covered by CalPERShttps://www.calpers.ca.gov/
The National Education Association estimates that close to 300,000 retirees in California will now see an increase in their Social Security checks, with an average boost of $360 per month. Many will also receive lump-sum payments reflecting benefits they would have received since January 2024.
For years, organizations such as the California Retired Teachers Association have pushed for this change, arguing that WEP and GPO disproportionately harmed educators and public employees. Some retirees saw their benefits drastically reduced, while others were excluded from receiving Social Security payments altogether.
Concerns About Social Security’s Future
While many retirees are celebrating the repeal, some economists have raised concerns about the financial implications. The Congressional Budget Office estimates the repeal could add $200 billion in costs over the next decade, potentially accelerating the depletion of the Social Security trust fund by six months.
Experts such as Dean Baker from the Center for Economic and Policy Research and Andrew Biggs from the American Enterprise Institute argue that the repeal primarily benefits those with government pensions. They suggest that Social Security reforms should instead focus on helping low-income retirees.
What Happens Next?
With the Social Security Fairness Act now in place, the Social Security Administration (SSA) is working to update payment calculations and distribute retroactive payments. Eligible retirees can expect lump-sum payouts in the coming months.
For California’s retired educators, first responders, and public employees, this repeal marks a long-fought victory—one that will result in thousands of dollars in additional Social Security benefits. Meanwhile, debates over how to maintain Social Security’s long-term stability continue.