The Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) deny retirement benefits earned by public workers in America.
If you earn even part of a public pension from a government job that doesn’t pay into Social Security (FICA), you can lose all or part of your earned Social Security retirement benefits.
Windfall Elimination Program (WEP)
An amount up to half the value of your pension can be cut from the Social Security you have earned in other work in which you paid the required FICA taxes.
Government Pension Offset (GPO)
If you are married to someone who is earning Social Security, you will probably lose all Social Security spousal or survivor retirement benefits due to you from taxes paid by your spouse during the marriage.
The Government Pension Offset and the Windfall Elimination Provision are penalties that negatively affect retirees who receive pensions from government agencies that do not participate in the Social Security system. Many of these retirees have earned Social Security retirement benefits from other work during their lifetimes or for being an eligible spouse. The GPO and WEP cut or totally eliminate their earned Social Security retirement benefits.