The Government Pension Offset Still Trips Up Retirees—Even in 2025 After WEP Is Gone

Key Takeaways

• The Government Pension Offset (GPO) continues to reduce Social Security spousal and survivor benefits for many government retirees, even though the Windfall Elimination Provision (WEP) was repealed in 2025.

• Your eligibility for full Social Security benefits depends on how your government pension is structured, whether you paid Social Security taxes, and how long you worked in covered employment.

Why GPO Still Matters in 2025

The Social Security Fairness Act of 2025 removed the Windfall Elimination Provision (WEP), a significant change that restored full Social Security benefits to many government retirees. However, the Government Pension Offset (GPO) remains in effect. This can still dramatically reduce or even eliminate the Social Security spousal or survivor benefits you may have expected.

Many public sector retirees are now discovering that while WEP no longer applies, GPO is still cutting into their monthly income. If you receive a pension from a federal, state, or local government job that did not withhold Social Security taxes, the GPO could reduce your Social Security spousal or survivor benefits by two-thirds of your pension amount.

That means if you’re receiving a $3,000 monthly pension, up to $2,000 of your Social Security benefit could be offset, potentially leaving you with little or nothing.

Who Is Affected by GPO in 2025

You are subject to the Government Pension Offset if:

• You receive a pension from a government job where you did not pay Social Security taxes.

• You are eligible for Social Security spousal or survivor benefits based on your spouse’s work record.

This applies even if you have worked in both covered (Social Security taxed) and non-covered (non-Social Security taxed) employment. The key question is whether your pension comes from non-covered work.

Here are examples of who is still affected in 2025:

• Retired teachers, police officers, and municipal workers in states where Social Security taxes were not withheld.

• Federal retirees under the Civil Service Retirement System (CSRS), unless they had enough Social Security-covered work to qualify for their own benefits.

• Widows or widowers of deceased spouses who were fully insured under Social Security.

The Math Behind GPO’s Offset

The GPO reduces Social Security spousal or survivor benefits by two-thirds of your government pension from non-covered employment.

Example calculation:

• Your monthly pension from a non-covered government job is $2,400.

• Two-thirds of that is $1,600.

• If you were entitled to $1,800 in Social Security spousal benefits, it would be reduced by $1,600, leaving you with only $200.

• If your spousal benefit is less than $1,600, it will be completely eliminated.

This rule applies regardless of your financial need or total household income. It also applies regardless of whether you are retired or still working.

How GPO Interacts with WEP’s Repeal

The repeal of WEP in 2025 only impacts individuals who were entitled to their own Social Security retirement or disability benefits. It did not repeal or alter the GPO, which applies only to dependent benefits like spousal or survivor benefits.

You might no longer see a WEP reduction on your personal Social Security benefit, but the GPO can still eliminate benefits you expected to receive as a spouse or widow. Many retirees mistakenly assume that the repeal of WEP means they’ll receive all the Social Security benefits they qualify for. That’s not true if GPO still applies to your situation.

The 60-Month Exception: A Critical Timing Rule

If you’re trying to avoid GPO, there is one little-known exception: the last 60 months of employment.

If your last 60 months (five years) of government service were in a position where you did pay Social Security taxes, then your pension from that employment may not trigger the GPO.

To use this rule, you must:

• Work for at least 60 consecutive months in a position where Social Security taxes are withheld.

• The employment must be with the same employer.

• The pension must be based fully or partly on this covered work.

Planning ahead for this window can be a powerful strategy, especially if you’re close to retirement and want to preserve your spousal or survivor benefits.

GPO’s Impact on Surviving Spouses

Widows and widowers are especially vulnerable under GPO. Even if your deceased spouse paid into Social Security for decades, you may receive reduced or no survivor benefit if you’re drawing a non-covered pension.

In 2025, the average monthly Social Security survivor benefit is approximately $1,750. That amount can vanish entirely if you’re receiving a non-covered government pension of $2,625 or more. Two-thirds of $2,625 is $1,750, which offsets the entire benefit.

This can be a devastating realization for government retirees who have planned their retirement assuming that they’ll receive full survivor benefits.

GPO and the Civil Service Retirement System (CSRS)

If you retired under the Civil Service Retirement System (CSRS), GPO is still very relevant in 2025. CSRS employees did not pay Social Security taxes, and most receive pensions that trigger the GPO.

Even though WEP is gone, CSRS retirees still face reductions or elimination of Social Security spousal or survivor benefits. Only those who worked in Social Security-covered employment for their last five years or more may escape this penalty.

You can mitigate the impact of GPO only if:

• You switch to a Social Security-covered position for five full years before retiring.

• You qualify for your own Social Security benefit that doesn’t depend on a spouse.

Common Misunderstandings in 2025

Many retirees still misunderstand the distinction between WEP and GPO. Here’s a quick clarification:

• WEP reduced your own Social Security retirement or disability benefits. It is repealed in 2025.

• GPO reduces your spousal or survivor Social Security benefits if you receive a pension from non-covered government work. It is not repealed.

Here’s what you should not assume:

• That the repeal of WEP also eliminated GPO. It didn’t.

• That GPO won’t apply if your pension is small. Even small pensions can significantly reduce benefits.

• That everyone working in government is exempt from Social Security. Many newer government jobs now include Social Security taxes.

How to Plan Around GPO in 2025

If you are affected by the GPO, planning ahead is critical. Consider these steps:

• Verify your employment history: Determine whether your pension is from covered or non-covered employment.

• Use the 60-month rule if possible: If you still have time, consider switching to a Social Security-covered job for five years.

• Talk with a retirement professional: Understanding the timing of your retirement, your eligibility, and your spouse’s work history can lead to a smarter strategy.

• Delay claiming spousal benefits: In some cases, delaying can make sense if your pension or other income changes.

• Review survivor benefit options: If you are married, understand how your spouse’s benefit might be affected by your government pension.

Federal Legislation Watch: GPO Repeal Still Uncertain

Although WEP was successfully repealed, the Government Pension Offset remains intact as of mid-2025. Several bills have been introduced in the past, including efforts to repeal both WEP and GPO, but only WEP made it through in the most recent legislation.

There is still political momentum to remove the GPO, especially from public employee unions and retiree advocacy groups. However, there is currently no passed law or effective date for repeal.

If you’re counting on change, it is wise to continue planning as though the GPO remains in force indefinitely.

Don’t Let GPO Catch You Off Guard in Retirement

The repeal of the Windfall Elimination Provision has been a major victory for public sector retirees in 2025. But the Government Pension Offset continues to quietly chip away at expected Social Security income.

If you’re nearing retirement and expect to receive a government pension from non-covered employment, you need to understand exactly how the GPO may reduce your Social Security benefits. Don’t make the mistake of assuming you’re in the clear just because WEP is gone.

Planning ahead can make all the difference. To understand your options and ensure you aren’t leaving money on the table, speak with a licensed professional listed on this website who can help tailor your retirement strategy.