News

In a historic vote in the early morning hours of December 21, 2024, the U.S. Senate passed the Social Security Fairness Act (H.R. 82), voting 76 to 20 for legislation that will repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), provisions that unfairly reduce Social Security benefits for public sector workers. This strongly bipartisan bill originated in the House of Representatives, where it passed 327 to 75 on November 12, 2024. The legislation will now be presented to President Joe Biden, who is expected to sign it.

This repeal marks a significant victory for LACERA retirees, both those currently impacted by the WEP/GPO penalties as well as future LACERA retirees who will receive the full Social Security benefits to which they are entitled.

Since 1983, the WEP has reduced the Social Security benefits for workers who receive a pension but who also qualified for benefits under the Social Security system (e.g., County workers employed before 1983, the year the County withdrew from Social Security participation, or LACERA members who were formerly employed in the private sector). Since 1977, the GPO has reduced Social Security benefits for spouses, widows, or widowers who also receive a government pension by 2/3rds of their pension amount, sometimes eliminating the Social Security benefit completely.

The repeal of the WEP/GPO comes after decades of efforts by public pension plans and public sector unions. Over the years, LACERA has been in contact with every House member and senator, urging for support of this repeal. Up to the final votes in the Senate, LACERA was a consistent advocate on behalf of its 187,000 members and beneficiaries.

Why Did It Take So Long?

Legislation to repeal the unfair WEP/GPO penalties has been successively introduced since 2001 and historically garnered bipartisan support but was never brought up for a vote. Frustrated with inaction on the legislation, this year the bill’s chief House sponsors led an effort to use the House’s rules to discharge the bill from the Ways and Means Committee and bring it to the full House for a direct vote. On September 19, the cosigners of the discharge petition reached the crucial threshold of 218 signatures, a simple majority in the House. This paved the way for House passage of the bill and subsequent transmission to the Senate.

During its debate on the repeal bill, the Senate considered three amendments. Each was soundly defeated or withdrawn from consideration, so the legislation was passed as written.

What Happens Next?

The effective date for the WEP/GPO repeal for those receiving Social Security benefits is December 2023. The Social Security Administration (SSA) will now need to recalculate benefit amounts for those affected by the WEP/GPO and determine how it can most efficiently make retroactive payments. It’s unclear how quickly the SSA can make and apply these changes.

LACERA will keep members posted as we receive new information regarding implementation of the appeal.