Here’s Why So Many Retired Government Workers Are Getting Less Social Security Than They Expected

Key Takeaways

• Many retired government workers are seeing reduced Social Security benefits in 2025 due to longstanding offset rules that still catch people off guard.

• Understanding how non-covered employment affects your Social Security is critical if you want to avoid surprises after retirement.

The Real Reason Your Social Security Check Is Smaller Than Expected

You may have worked for decades in public service, paid into a pension, and assumed Social Security would simply be there to supplement it. But when your first retirement benefit arrives, you realize the amount is far lower than expected. Why?

It often comes down to two complex but powerful provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules reduce Social Security benefits for government retirees who also receive pensions from employment not covered by Social Security.

In 2025, even though WEP has been repealed under the Social Security Fairness Act, the GPO still affects many retirees.

Understanding the Role of Non-Covered Employment

Not all government jobs deduct Social Security taxes from your paycheck. If your job was in a position where you didn’t pay into Social Security—even if you contributed to a public pension—you are considered to have worked in “non-covered” employment.

Here are some examples of non-covered employment:

• Certain state and local government jobs (especially in states like California, Texas, and Ohio)

• Some public education positions

• Specific federal jobs under the Civil Service Retirement System (CSRS), which preceded FERS

If you later qualify for Social Security through other work, these offset rules come into play.

The Windfall Elimination Provision (WEP) Was a Major Factor Until 2025

Before 2025, the WEP reduced the Social Security retirement or disability benefits of those who also received a pension from non-covered employment. It used a modified formula to calculate your benefit and could reduce it by up to $613 per month in 2024.

Fortunately, WEP has been repealed as of January 5, 2025, under the Social Security Fairness Act. This change restores full Social Security benefits to hundreds of thousands of government retirees who previously faced reductions.

If you were affected by WEP in 2024, you may receive retroactive adjustments for that year. The average monthly increase in 2025 due to WEP repeal is estimated at $360, though it varies based on your earnings record and pension.

The Government Pension Offset (GPO) Still Applies in 2025

Unlike the WEP, the GPO has not been repealed. It continues to reduce Social Security spousal and survivor benefits for retirees who receive a pension from non-covered government work.

Here’s how the GPO works:

• If you receive a pension from non-covered government employment

• And you are eligible for Social Security spousal or survivor benefits

• Then your spousal/survivor benefit is reduced by two-thirds of your government pension

For example, if your monthly pension is $1,800, two-thirds of that is $1,200. If you were entitled to a $1,000 spousal Social Security benefit, it would be entirely wiped out by the offset.

This rule still affects hundreds of thousands of retirees in 2025, particularly CSRS retirees and teachers in non-covered districts.

Why So Many Government Employees Miss This During Planning

Retirement planning is complex, especially when your income comes from both a pension and Social Security. Many public sector workers assume:

• Social Security will pay the full amount based on their earnings history

• Spousal benefits will be available just like for private sector spouses

Unfortunately, these assumptions fall apart when offset rules apply. You need to assess your earnings, your pension eligibility, and your Social Security status early on.

Lack of proactive planning can result in:

• Smaller-than-expected retirement income

• Loss of survivor benefits for spouses

• Budget shortfalls during early retirement years

How the GPO and WEP Interacted Before 2025

In years prior to 2025, it was possible to be hit by both WEP and GPO. For example:

• You could lose part of your own Social Security benefit due to WEP

• You could also lose spousal benefits due to GPO

This dual penalty caught many government retirees by surprise. While WEP is now gone, GPO remains, continuing to lower benefits for many.

How to Tell If You Are Affected by GPO

Ask yourself the following questions:

• Did you work in a government job where you did not pay Social Security taxes?

• Are you now receiving a pension from that work?

• Are you trying to claim Social Security benefits based on your spouse’s work record?

If the answer is yes to all three, you are likely affected by the GPO. Your spousal or survivor benefit will be reduced accordingly.

Even if you qualify for both your own benefit and a spousal benefit, the GPO can still eliminate the higher of the two.

FERS Employees Typically Avoid the Offset

If you are a federal worker under the Federal Employees Retirement System (FERS), most or all of your service is considered “covered employment,” meaning you paid into Social Security. This significantly reduces the chances that either WEP or GPO will apply to you.

However, if you had prior service under CSRS, or if you receive a CSRS component pension, the GPO could still apply.

The Retirement Math Can Be Tricky

Offset rules are not always intuitive. Here are just a few complicating factors to keep in mind:

• Years of substantial earnings under Social Security could reduce the impact of WEP (before it was repealed)

• The size of your pension determines the GPO amount

• GPO applies even if you qualify for Social Security spousal benefits

Also note: GPO does not impact your own Social Security retirement benefit based on covered work. It only applies to benefits derived from another person’s record.

What You Can Do to Protect Your Income

If you’re still working or nearing retirement, here are steps to take now:

• Request a detailed Social Security statement to review your earnings record

• Calculate your potential pension and compare it with projected Social Security spousal/survivor benefits

• Ask about your job’s Social Security coverage if you’re unsure

• Consult a licensed professional familiar with government retirement benefits and offset rules

Even if you are already retired, you may benefit from re-evaluating your income strategy in light of WEP repeal and the continuing GPO.

The Repeal of WEP Is a Major Win—But GPO Still Hurts

The repeal of the Windfall Elimination Provision has brought long-awaited relief to many in 2025. Retirees who were penalized for their years of public service now receive fuller benefits. For those previously affected, it is important to ensure your Social Security payment has been recalculated and any retroactive benefits applied.

However, the Government Pension Offset continues to reduce Social Security income for many retirees. It remains a significant burden on spouses and widows who expected to receive Social Security based on their partner’s work history.

Advocacy groups continue to push for full repeal of the GPO, but until that happens, it is essential that you plan your retirement around its impact.

A Final Word on Offsets and Retirement Income Planning

If you’re counting on Social Security to play a major role in your retirement income, you cannot afford to overlook these offset rules. The confusion they create is real, and the financial consequences can last for decades.

Speak with a licensed professional listed on this website to evaluate how the GPO may affect your situation, especially now that the WEP has been eliminated. You deserve clarity about what you’ve earned and what you can rely on.