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CRS Publishes Report on Beneficiaries Affected by Both the WEP and GPO

On July 30, 2019, the Congressional Research Service (CRS) published its report, Social Security: Beneficiaries Affected by Both the Windfall Elimination Provision (WEP) and the Governmental Pension Offset (GPO). The WEP and the GPO are two separate provisions that reduce regular Social Security benefits for workers and their eligible family members if the worker receives (or is entitled to) a pension based on earnings from employment not covered by Social Security.

The report examines the current-law provisions of the WEP and the GPO, those affected by both provisions, and size of the affected population. In addition, it examines issues related to Social Security overpayments associated with dually entitled beneficiaries affected by both provisions, the two offsets’ impact on Social Security benefits and household wealth, among others.

The WEP affects retired or disabled workers and their family members and the GPO affects spouses and survivors. The WEP affects Social Security benefits paid to individuals who earn Social Security benefits from Social Security covered employment, but who also earn pension benefits from state or local government employment not covered by Social Security. In these cases, Social Security benefits are lowered by the WEP. Under the GPO, an individual’s Social Security spousal or survivor’s benefit is reduced (“offset”) by two-thirds of the pension benefits received from federal, state, or local government employment that is not covered by Social Security.

According to the report, some beneficiaries that are entitled to both Social Security retirement benefits and spousal benefits may be affected by both the WEP and GPO. Social Security beneficiaries will be affected by both the WEP and GPO if they:

  • Received a noncovered government pension;
  • Are entitled to a WEP-reduced Social Security retired or disabled worker benefit; and
  • Are dually entitled to a Social Security spousal or survivors benefit after the reduction of the retired or disabled worker benefit.
  • About 263,775 Social Security beneficiaries had their benefits reduced by both provisions with 14% of spouses and survivors affected by the WEP and 38% affected by the GPO. The report also indicated that the benefit offsets cause difficulties with calculating and administering Social Security benefits.

The report is available here.