Social Security Won’t Work the Way You Expect If You’ve Worked in Government Too

Key Takeaways

• If you spent time working in government jobs not covered by Social Security, your future benefits may be significantly reduced due to remaining rules like the Government Pension Offset (GPO).

• Even though the Windfall Elimination Provision (WEP) was repealed in 2025, the GPO still applies and can lower or eliminate spousal and survivor benefits based on your government pension.

Why Social Security Is Different for Public Sector Workers

Social Security was designed to provide a foundation of retirement income, but it assumes that you paid into the system consistently throughout your career. If you worked for a government agency or public institution where you didn’t pay Social Security taxes, your benefits are treated differently.

Many public sector jobs, particularly under the Civil Service Retirement System (CSRS), did not require Social Security contributions. Even if you later worked in jobs that did pay into Social Security, your overall benefit calculation can still be impacted.

The Repeal of the Windfall Elimination Provision (WEP)

As of January 5, 2025, the Windfall Elimination Provision has officially been repealed. This rule used to reduce your Social Security benefit if you received a government pension based on non-covered employment (such as CSRS), even if you also had enough Social Security credits to qualify for benefits.

The repeal of WEP has restored full primary benefits for many public retirees. If you previously had your benefit reduced, the Social Security Administration has adjusted your payments retroactively to January 2024.

However, one key reduction rule still remains in effect.

The Government Pension Offset (GPO) Is Still Active

The Government Pension Offset is still in place in 2025, and it applies to Social Security spousal and survivor benefits. If you are receiving a government pension from work not covered by Social Security, your spousal or survivor benefit from a spouse who did pay into Social Security may be reduced or eliminated.

Here is how it works:

• The GPO reduces your Social Security spousal or survivor benefit by two-thirds of your government pension.

• If two-thirds of your pension is more than your spousal or survivor benefit, you receive no benefit at all.

This provision remains in force unless further legislation is passed.

Who Is Affected by the GPO?

The GPO impacts individuals who:

• Worked in non-Social Security-covered government jobs such as under CSRS.

• Qualify for a spousal or survivor benefit based on a spouse’s Social Security-covered work.

This applies to many retirees from state, local, and federal government positions, especially if they never transitioned to FERS or only worked a short time under Social Security-covered employment.

FERS vs. CSRS and Social Security Interaction

Your retirement system matters. The Federal Employees Retirement System (FERS) was designed to integrate with Social Security. You paid into both your FERS annuity and Social Security during your career.

By contrast, the Civil Service Retirement System (CSRS) was created before Social Security coverage became widespread in the public sector. CSRS does not include Social Security payroll contributions unless you switched to CSRS Offset or FERS later.

In 2025:

• Most current federal retirees under CSRS will continue to see GPO reductions.

• FERS retirees will receive full Social Security benefits based on their earnings record, without reductions, since their employment was covered.

Calculating Your Social Security Benefits With a Government Pension

To receive Social Security retirement benefits in 2025, you need at least 40 work credits, which generally means 10 years of work in Social Security-covered employment. Your benefits are based on your highest 35 years of earnings.

If you worked part of your career in a non-covered position and the rest in Social Security-covered work, your Social Security benefit will only consider your earnings from those covered years.

In 2025, here are some key numbers:

• Full retirement age (FRA): 67 for those born in 1963.

• Average monthly Social Security benefit: Around $1,907.

• Maximum taxable earnings limit: $176,100.

Even with the repeal of WEP, your personal benefit may still be lower if you have fewer than 35 years of earnings under Social Security.

Survivor Benefits and the GPO Penalty

Spousal and survivor benefits used to offer a layer of financial protection, especially for spouses who had limited earnings of their own. But if you receive a pension from government work not covered by Social Security, the GPO may sharply reduce or eliminate these benefits.

Here’s how that might look:

• Suppose your government pension is $3,000 per month.

• Two-thirds of that amount is $2,000.

• If your survivor benefit is also $2,000 or less, it will be completely offset.

This remains a surprise for many, especially those who had expected to rely on a deceased spouse’s Social Security income.

Will the GPO Ever Be Repealed?

Efforts to repeal the GPO have been ongoing for decades. In 2025, with WEP repealed, some lawmakers and advocacy groups have renewed calls to repeal the GPO as well. However, legislation has not yet passed.

If you are counting on survivor or spousal benefits in retirement, you need to plan as if the GPO will remain in effect unless and until the law changes.

What Happens If You Worked Both Types of Jobs?

If your career included time in both Social Security-covered and non-covered government jobs, the rules become more complex. You may:

• Qualify for Social Security benefits based on your own covered work.

• Receive a pension from your government job.

• See your spousal or survivor benefits reduced by the GPO.

This situation is common for CSRS Offset employees, certain state teachers, or those who transitioned from CSRS to FERS mid-career. You should carefully check your Social Security statement and pension estimate.

How to Check Your Social Security Estimate

The Social Security Administration provides detailed estimates of your future retirement, disability, and survivor benefits through your my Social Security account.

Make sure your earnings history is accurate and reflects all covered employment. Pay special attention to whether any prior years are missing income, and confirm your eligibility for:

• Retirement benefits

• Spousal benefits

• Survivor benefits

You can also contact SSA directly if you suspect your benefits may be impacted by the GPO.

Planning Around GPO Reductions

If your retirement income will be affected by the GPO, the time to prepare is now. Consider these steps:

• Diversify your retirement income: Relying only on your government pension and reduced Social Security benefits may leave you with gaps. Use your Thrift Savings Plan (TSP), IRAs, or other savings to cover them.

• Understand survivor income: If your spouse passes away and you lose the expected survivor benefit, your household income could drop sharply.

• Claiming strategy: In some cases, it may make sense to delay your Social Security claim to increase your own benefit, especially if spousal benefits will be offset anyway.

A licensed professional can help you develop a tailored strategy.

Timing and Retirement Milestones That Matter in 2025

Some retirement milestones to keep in mind for this year:

• Age 62: Earliest age you can start collecting Social Security retirement benefits, with a permanent reduction.

• Age 65: Medicare eligibility begins.

• Age 67: Full retirement age for anyone born in 1960 or later.

• Age 70: Maximum age to delay claiming benefits for the highest possible monthly amount.

These ages are critical for aligning your pension, TSP withdrawals, and Social Security timing. If you are married and subject to GPO, coordinate your plan with your spouse’s benefits too.

Why the Rules Still Matter, Even After WEP Repeal

Many people mistakenly believe the WEP and GPO were eliminated together in 2025. They were not. While WEP is gone, the GPO continues to reduce benefits for hundreds of thousands of government retirees. You need to understand both your personal Social Security entitlement and your spouse’s to make informed retirement decisions.

Also, while repealing WEP was a major win for many retirees, it had no effect on those who rely primarily on spousal or survivor benefits. You may still need to plan as if your expected benefit will be partially or completely lost to the GPO.

What This Means for Your Retirement Strategy

If you spent all or part of your career in public service, you owe it to yourself to understand how the Social Security rules differ for you. Your income, survivor planning, and even your TSP withdrawal strategy may need to be adjusted.

Many retirees find that their expectations about Social Security do not match the reality they face once government pension rules come into play. That’s why it’s important to:

• Analyze your SSA earnings history

• Verify your pension’s coverage status

• Run updated income projections

• Include contingencies for reduced spousal benefits

Don’t Let the GPO Catch You Off Guard

Retirement planning is never one-size-fits-all. If you worked in public service and expect to receive Social Security, understanding the impact of the Government Pension Offset is essential. Even though the WEP no longer reduces your personal benefit, the GPO can still cause a major financial shortfall.

Speak with a licensed professional listed on this website to help you calculate your expected benefits and develop a sound retirement plan tailored to your circumstances.