Retirement & Financial Planning Report

The WEP and GPO apply only under the CSRS system—which now applies to only several percent of current federal employees but about half of current retirees. Image: NiglayNik/Shutterstock.com

The National Active and Retired Federal Employees Association has called on a House committee to advance a bill (HR-82) to repeal the “windfall elimination provision” and “government pension offset,” noting that more than 300 House members now have signed on as cosponsors.

Half of senators similarly are now co-sponsors of a counterpart version (S-597) there, the organization said in calling on the House Ways and Means Committee to advance the bill for floor voting.

“President Biden supported elimination of these penalties on the 2020 campaign trail, and H.R. 82 has counted Speaker Johnson among its supporters as well. For a policy with such wide-ranging and broad support across the political spectrum to continually fail to be passed into law, or even to receive a House floor vote, undermines trust in the claims of our representatives, and faith that our democracy truly works,” the letter said.

“Now is the time for this committee to find a solution to address these longstanding, unfair penalties impacting dedicated public servants across the country. WEP and GPO were arbitrary, unfair and punitive when they were enacted, and remain so today. That they have been permitted to remain on the books for decades only makes their impact worse,” it said.

The WEP and GPO apply only under the CSRS system—which now applies to only several percent of current federal employees but about half of current retirees.

The former reduces a Social Security benefit the person earned through other employment—typically before or after a federal career but in some cases during a career through work on the side—if the person had less than 30 years of earnings above a designated level that this year is $31,275. The maximum reduction works out to above $500 a month and is not as severe for those with between 20 and 30 years of such earnings.

The latter reduces Social Security spousal or survivor benefits by $2 for each $3 the beneficiary receives in an annuity from a retirement system that does not include Social Security. In many cases, the effect of the GPO is to eliminate a spousal or survivor Social Security benefit through a spouse’s Social Security-covered employment.

Bills to eliminate or at least soften both have been introduced in Congress for many years but the closest any have come to voting occurred in the prior Congress when the Ways and Means panel advanced what in essence was a shell bill to be fleshed out and voted on in the full House later. That never happened, however.

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See also,

Calculating Service Credit for Sick Leave At Retirement

FERS Supplement vs The 10% Pension Bonus

How Your FERS, Social Security and TSP Payments Get Taxed

Where Should I Put My TSP in Retirement

What Retirement Date Maximizes My Federal Benefits?

2026 FERS Retirement & Thrift Savings Plan Handbook