Louisville, Ky. — Retired police officers, firefighters, teachers, and other public servants in Kentucky are set to see an estimated $300 to $350 increase in their Social Security benefits starting next month. This increase comes as a result of the reversal of two provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which had previously reduced Social Security benefits for individuals receiving retirement payments from other sources, such as state or local government pension plans.
The Kentucky Education Association (KEA), the state’s teachers’ union, welcomed the changes, stating that they would help retired public servants “become whole.” Eddie Campbell, president of the KEA, expressed his gratitude, noting the vital role that public servants play in their communities. “Our educators and public servants make our Commonwealth move forward every single day. They spend their careers serving the communities in which they live,” Campbell said. “Oftentimes, they have to take other jobs to ensure they’re providing for their families.”
The reversal of the WEP and GPO provisions addresses long-standing concerns from those affected by these reductions, including individuals who worked in public service but also contributed to Social Security. Previously, their Social Security benefits were reduced due to their pensions from public-sector retirement programs, leading to financial challenges for many retirees.
The Social Security Administration (SSA) confirmed that most affected individuals will receive one-time retroactive payments by the end of March. Starting in April, they will see the increased monthly benefit payments directly deposited into their bank accounts. According to the SSA, these changes align with the Social Security Fairness Act, a key priority for former President Donald Trump.
The Congressional Research Service reported in December 2023 that about 745,679 people, or roughly 1% of all Social Security beneficiaries, were impacted by the GPO, while about 2.1 million individuals, or 3% of beneficiaries, were affected by the WEP.
However, the changes come with concerns regarding the long-term solvency of the Social Security program. A 2023 report from the Social Security and Medicare trustees indicated that the program’s trust fund would be unable to pay full benefits beginning in 2035, a timeline that could be accelerated by the adjustments to benefits under the new law.
While many beneficiaries will see an immediate financial relief, the future of Social Security remains a significant political issue, with its solvency becoming a focal point in the 2024 elections. Currently, over 72.5 million Americans, including retirees, disabled individuals, and children, rely on Social Security benefits.
As the retroactive payments begin to roll out, the SSA has advised recipients to wait until April to inquire about the status of their payments, as some payments will process incrementally into March.
The move to reverse the WEP and GPO provisions marks a significant step in addressing disparities in Social Security benefits, especially for those who have spent their careers serving the public.
