Social Security and Federal Pensions Don’t Always Get Along—Here’s Why It Matters Now

Missy E
November 14, 2025

Key Takeaways

Your federal pension might not work in perfect harmony with your Social Security benefits due to specific rules that reduce what you receive.
Understanding how the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) apply to you can help you plan better and avoid unexpected cuts.

How Social Security and Federal Pensions Intersect

Also Read: How CSRS Pension Plans Are Keeping Federal Employees Financially Secure After Decades of Service
Also Read: Why Federal Employees with Military Backgrounds Are Seeing Huge Gains from Buyback Programs in 2025
Also Read: Why Federal Workers Are Prioritizing Long-Term Financial Security with Innovative Planning Techniques

As a government employee, you’ve probably spent years contributing to a pension system like the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Meanwhile, Social Security benefits might be a part of your retirement picture—or they might not be. The overlap between these systems isn’t always smooth. In some cases, your pension could actually reduce the Social Security benefit you expected to receive.

That happens primarily due to two federal laws: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Each has a distinct impact on your retirement income, depending on your work history and the nature of your pension.

1. What the Windfall Elimination Provision Does

WEP applies if you receive a pension from a job where you didn’t pay Social Security taxes—typically under CSRS—and also qualify for Social Security from other work. Here’s what WEP does:

It alters the Social Security benefit formula to reduce your monthly payment.
The reduction is not a flat amount; it’s a formula-based change that affects how your benefit is calculated.
As of 2025, the maximum WEP reduction is $557 per month.

This means if you spent most of your career under CSRS but worked enough in Social Security-covered jobs to qualify for benefits, those benefits will likely be reduced.

2. Government Pension Offset and Spousal Benefits

The GPO kicks in when you receive a federal pension and also qualify for Social Security spousal or survivor benefits. Here’s how it works:

Your Social Security spousal or survivor benefit is reduced by two-thirds of your federal pension.
If your pension is high enough, this can completely eliminate your spousal or survivor benefit.

For example, if your pension is $1,800 per month, the Social Security benefit could be reduced by $1,200. If your spousal benefit was $1,200 or less, you may receive nothing at all.

3. FERS Employees Usually Avoid WEP and GPO—But Not Always

FERS, introduced in 1987, includes mandatory Social Security contributions. If you’re a FERS employee or retiree, you’re generally safe from WEP and GPO. But there are exceptions:

If you had a prior career under CSRS or a job not covered by Social Security, and you qualify for Social Security from outside employment, WEP may still apply.
If you receive a pension from non-covered work, such as certain foreign or state government jobs, GPO and WEP might still be a concern.

4. The Repeal of WEP—What Has Changed in 2025

In a major shift, the Windfall Elimination Provision was repealed in early 2025 under the Social Security Fairness Act. This marks a significant improvement for many CSRS retirees and others affected by WEP.

Here’s what the repeal means:

Anyone whose benefits were reduced by WEP will see a correction in their monthly Social Security payments.
The change applies retroactively to January 2025.
However, the Government Pension Offset (GPO) remains in place.

You should have received a notice from the Social Security Administration if the WEP repeal affects you. If not, it’s a good idea to reach out for clarification.

5. Why the Government Pension Offset Still Matters

Even though WEP is gone, the GPO continues to affect spousal and survivor benefits in 2025. That means:

Married retirees under CSRS who planned on receiving spousal benefits might still see a reduction.
Surviving spouses may receive far less—or nothing—if the GPO wipes out the survivor benefit.

The continued presence of the GPO makes it critical to reevaluate your retirement income plan. It can be especially important for dual-income households where one spouse worked in the private sector and the other under a government pension.

6. How to Estimate the Impact on Your Benefits

To understand how these provisions affect you:

Use the Social Security Administration’s online calculators for WEP and GPO.
Review your earnings record to confirm which years count as “substantial earnings” for WEP purposes.
Consult with a licensed agent familiar with federal retirement systems and Social Security coordination.

The difference in monthly income can be significant—potentially hundreds of dollars—so it’s worth doing the math ahead of time.

7. Timing and Strategy Still Play a Big Role

Even if WEP is no longer a factor, how and when you claim Social Security remains important. Here are a few timing tips:

Claiming at your Full Retirement Age (FRA) gives you your full benefit amount.
Claiming before FRA—age 67 if born in 1963—results in permanently reduced benefits.
Delaying benefits beyond FRA can increase your monthly payment by up to 8% per year until age 70.

If GPO affects you, delaying benefits won’t eliminate the offset, but it can reduce the relative impact.

8. The Coordination Challenge with Dual Retirements

Some of you may be in dual-retirement households, where both spouses receive pensions or Social Security. In those cases:

GPO can drastically reduce or eliminate one spouse’s Social Security benefit.
Survivor planning becomes more complex, as GPO may reduce survivor benefits when one spouse passes.

You’ll want to assess:

Who has the larger pension or benefit?
What happens to household income if one spouse dies?
Whether life insurance or other assets should be used to fill potential income gaps.

9. Legislative Outlook Beyond 2025

Although WEP has been repealed, there’s continued legislative discussion around GPO. Advocates argue that GPO unfairly penalizes public servants—especially women—who took time off from Social Security-covered work to serve in government roles.

While repeal has strong support in some corners of Congress, there is no confirmed timeline for further action. For now:

Plan as though GPO will remain in place.
Stay informed about new proposals that may change how pensions and Social Security interact.

10. What You Can Do Now to Prepare

Preparation can help you avoid surprises in retirement. Steps to take now include:

Request your Social Security Statement annually to check for errors.
Review your pension estimates and income sources.
Talk to a retirement planning expert who understands federal benefits.
Consider the role of survivor benefits in your long-term plan.
Stay updated on changes to Social Security rules.

These actions can help you build a resilient retirement strategy—even in a system where not everything aligns perfectly.

Staying Ahead of Benefit Clashes in 2025 and Beyond

Now that WEP has been repealed, it’s tempting to think the friction between pensions and Social Security is over. But the GPO still looms large for many public servants. If you or your spouse receives—or plans to receive—a pension from a non-covered job, you’ll need to be proactive.

Don’t let surprise reductions catch you off guard. This is the time to review your benefit estimates, update your retirement strategy, and reach out to a licensed agent listed on this website for professional advice tailored to your unique circumstances.