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Social Security Fairness Act: What It Is and How It Affects COAERS Retirees

Close-up image of several U.S. Social Security cards stacked together.

 

On January 5, the Social Security Fairness Act (HR 82) was signed into law. This Act eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

 

What are WEP and GPO?

Windfall Elimination Provision (WEP): This formula reduces Social Security benefits for people who receive a pension from an employer that doesn't withhold Social Security taxes.

Government Pension Offset (GPO): This reduces Social Security benefits for spouses, widows, or widowers by two-thirds of their pension from an employer that doesn't withhold Social Security taxes.

 

Does the Social Security Fairness Act affect City of Austin employees and my COAERS benefits? 

No. City of Austin employment is covered by Social Security and is not impacted by WEP and GPO. Therefore, the Social Security Fairness Act will not affect COAERS retirees.  COAERS retirees have always been eligible to receive their full Social Security benefits and their COAERS pension with no offset or reduction to their Social Security benefit.