The GPO Is Gone Under the Fairness Act – But This Social Security Rule Could Still Cost You Thousands

The Government Pension Offset (GPO) has reduced or eliminated Social Security spousal and widow(er) benefits for millions of Americans who worked in jobs not covered by Social Security for decades. But thanks to the Social Security Fairness Act, the GPO is gone, a huge victory for public sector retirees across the country. However, even with this long-overdue reform, one little-known Social Security rule could still cost you thousands, especially if you were previously discouraged from applying for benefits. Here’s what you need to know.

What Was the Government Pension Offset (GPO)?

The GPO was created in 1977 to prevent “double-dipping” for those who received a non-covered pension from an employer that didn’t withhold Social Security taxes, such as state and local governments or foreign employers.

Under the GPO, if you were eligible for a spousal or survivor benefit, that benefit was reduced by two-thirds of your non-covered pension. That often meant your entire Social Security benefit was wiped out.

For example:

• If your non-covered pension were $1,000, the GPO would reduce your spousal benefit by $667. You’d receive only $233.
• If your pension were $1,600, the GPO would reduce your benefit by $1,067, leaving you with nothing if your spousal benefit was only $900.

By 2022, over 734,000 Americans were affected by the GPO. Nearly 70% received no Social Security spousal or survivor benefits at all due to the offset.

The GPO Is Gone Under the Fairness Act

In a major shift, Congress has now passed the Social Security Fairness Act, which eliminates the GPO. As of January 2024, spousal and widow(er) benefits are no longer reduced due to non-covered pensions. The repeal of the GPO will benefit over 3.2 million retirees, who include teachers, firefighters, and other public servants.

The Social Security Administration (SSA) began updating payments in April 2025 and is expected to finish rolling out the changes for all affected individuals by November. Many will also be eligible for retroactive payments dating back to January 2024.

The Social Security Rule That Could Still Cost You Thousands

Unfortunately, a technicality in Social Security policy may prevent some retirees from receiving their full back pay. And it all comes down to how and when you applied. In the past, many retirees contacted the SSA to ask about applying for spousal benefits. But because of the GPO, SSA staff often told them it wasn’t worth applying since the benefit would be reduced to zero anyway.

Now that the GPO is gone under the Fairness Act, those retirees are eligible for benefits, including back pay. However, because they never filed a formal application, SSA rules limit their retroactive benefits to just six months, regardless of when they first inquired. In other words, retirees who were told not to apply may now lose thousands of dollars simply because they trusted bad advice.

Lawmakers Demand a Fix

Several U.S. senators, including Bill Cassidy (R-LA), Susan Collins (R-ME), and John Fetterman (D-PA), are urging the SSA to change course. They argue that retirees who were misled should be granted full retroactive benefits, not just six months. So far, the SSA hasn’t changed its position, leaving affected retirees in a frustrating situation.

What You Can Do

If you believe you’re affected:

1. Contact the SSA and ask about your eligibility under the new rules.
2. Document any past communications with SSA representatives who discouraged you from applying.
3. Reach out to your congressional representatives and request their support in pressing the SSA for fair treatment.

Conclusion

While the GPO is gone under the Fairness Act, this Social Security rule could still cost you thousands if you didn’t file an official application. If you’re affected, don’t wait take action now to fight for the benefits you’ve earned.