Social Security Changes With WEP

Often, we think of laws being put in place for the betterment of society, but they aren’t always one size fits all. The Windfall Elimination Provision (WEP), which has now been repealed (retroactive to January 1, 2024), is an example of this. Many will find that they will soon receive an increase in their monthly Social Security benefits.

The WEP was signed into law by President Ronald Reagan in 1983. Most may not even be aware of it unless it directly affected them. WEP is responsible for reducing the amount of Social Security payments one received if they simultaneously received a pension from employment where Social Security taxes were not paid, which often included work overseas or public sector employees. The reduction in payments varied by person and work history. In many cases, instead of WEP making the system fairer and eliminating the ability for someone to get more benefits than they were entitled to, it was penalizing those who had legitimate work histories. Those who paid into Social Security for many years, but also happened to have long histories working abroad too, were receiving reduced payments disproportionate to their actual contributions into the system. It has finally been determined that WEP calculations were too harsh and no longer appropriate leading to the Social Security Fairness Act of 2025, which is responsible for repealing WEP.

I plan to call my 85-year-old grandma to find out if she received an increase in her benefits. She is an example of someone who worked in France and is receiving a French pension along with her Social Security check. France is one of the 30 countries that the U.S. has a Totalization Agreement with, meaning WEP may have affected her entitlement of benefits. The Totalization Agreements were put into place to avoid having U.S. taxpayers paying double Social Security and ensuring they could receive credits toward either country’s system. Imagine at her age suddenly receiving a larger benefit!  

For individuals currently collecting Social Security benefits who were affected by WEP, they may receive a one-time, lump-sum payment retroactive to January 1, 2024, for underpaid benefits in addition to increased monthly benefits. The Social Security Administration (SSA) is in the process of implementing these changes and exactly when the payments will be made is unknown. You may reach out directly to SSA to find out how the repeal of WEP may impact you personally. Lastly, always make sure that your contact information is up to date with SSA to ensure you receive timely notifications regarding your account.

Sources:

https://www.ssa.gov/international/agreements_overview.html

https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=5

https://www.ssa.gov/policy/docs/ssb/v68n2/v68n2p21.html

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