Oct 10, 2018 · The new law also repealed the Government Pension Offset (GPO), a similar rule that affected about 750,000 people who collected Social Security spousal or survivor benefits and also received a pension from federal, state or local government jobs that did not withhold Social Securty taxes. Their benefits could be reduced by up to two-thirds of ...

This section of AARP’s Social Security Resource Center breaks down how work, pensions and taxes affect your benefits. You’ll find easy-to-understand answers on: Social Security’s earnings limit and how it works; The Windfall Elimination Provision and the Government Pension Offset; How much of your income is subject to Social Security taxes

Dec 4, 2024 · The GPO, enacted in 1977, applied to those drawing such a pension and Social Security spouse benefits or survivor benefits and cut those payments by up to two-thirds of the pension amount. The repeal law, called the Social Security Fairness Act, is retroactive to cover 2024 benefit payments.

Oct 10, 2018 · If you were collecting Social Security retirement benefits and a non-covered government pension, you might have been subject to the Windfall Elimination Provision. Pensions from jobs where Social Security taxes were collected, be they in the public or the private sector, were never affected by the GPO or the WEP.

Nov 21, 2024 · A potential exception is when the pension comes from a workplace where you did not pay Social Security taxes (as is the case for some state and local government agencies). If you are receiving such a pension and also collect Social Security based on other employment, your benefit payment could be reduced.

Oct 10, 2018 · The Windfall Elimination Provision (WEP) was a formula that could reduce the size of your Social Security retirement or disability benefit if you also received a pension from a job in which you did not pay Social Security taxes. Congress voted in December 2024 to repeal the WEP, ending benefit cuts for those receiving such “non-covered ...

Aug 22, 2023 · The pension is like a super long-term bond, whereas Social Security is an inflation-adjusted paycheck for life. Members only Though it may seem inconsistent, I value Sue’s portfolio at $480,000 ($415,000 stocks and bonds plus …

Jan 24, 2025 · In 2023, income taxes on benefits added $50.7 billion to the Social Security trust funds, accounting for about 3.8 percent of Social Security’s revenue — the vast majority of which comes from payroll taxes levied separately on most U.S. workers’ earnings.

Oct 5, 2022 · Until recently, there were eight items in this list, but in December 2024 Congress repealed two Social Security rules — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that reduced monthly benefit payments for millions of people who collect pensions from public-sector jobs.

Oct 10, 2018 · Retirement benefits are just one type of Social Security benefit. There are also survivor benefits, spousal benefits and disability benefits, all of which have their own qualification criteria. To find out more about eligibility for those programs, you can use Social Security’s Benefit Eligibility Screening Tool.