[UCRDBR] Repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)

[Departmental Benefits Representatives]

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January 28, 2025

To:
Department Benefits Representatives (DBRs)
From:
Central HR Benefits Office on behalf of UC Office of the President
Re:
Repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)

DBRs, please share this information via your internal listserv.  Do not reply to this email.  Please
send a separate email with questions to benefits at ucr.edu<mailto:benefits at ucr.edu>.

With the recent announcement to repeal the Windfall Elimination Provision and Government Pension Offset, UCOP offers the following information for general knowledge and for those who may be impacted by these changes.

Most members of the UC Retirement Plan (UCRP) or those who participate in the Savings Choice plan make contributions towards and earn benefits from Social Security through their employment with UC.  However, not all UCRP members have the same access to Social Security benefits during retirement, as some of our members do not have Social Security taxes withheld from their salary.  These UCRP participants are commonly referred to as "non-coordinated" members, and include employees such as Police and Firefighters (Safety) and individuals who elected to forgo participation in Social Security when it was first made available at UC during the 1970s.

Prior to January 6, 2025, these members were subject to a federal law known as the Windfall Elimination Provision (WEP), which limited Social Security benefits for anyone in a "non-coordinated" position unless they had 30 or more years of "substantial earnings" from a different job where Social Security taxes had been collected. This law did not impact any UCRP benefits, nor did the WEP reduce their Social Security benefits for members who are "coordinated" (paying into Social Security).

Additionally, these non-coordinated members could be subject to the Government Pension Offset (GPO), which applied to those who receive a government pension that is based on employment not covered by Social Security and who are eligible for Social Security benefits as a spouse or a surviving spouse. Similar to the WEP, the GPO provisions did not impact UCRP benefits and/or members whose employment has always been covered by Social Security.

Both the WEP and GPO were repealed by the Social Security Fairness Act, signed into law by President Biden on January 6, 2025. The change in the law is retroactive to benefits paid in 2024. It is currently unclear how long it will take the Social Security Administration to fully implement its provisions and pay retroactive benefits.

The UCRS 419 form<https://ucnet.universityofcalifornia.edu/wp-content/uploads/forms/pdf/ucrs-419.pdf>, which was intended to comply with Section 419(c) of Public Law 108-203, which mandated that employers inform employees about the potential reduction in their Social Security benefits due to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), will no longer need to be provided to employees as these benefit reductions will no longer apply. The UCRS 419 form will be removed and retired from the UCnet website.

Employees or Retirees looking for more information can read the Social Security Administration's update on the new law<https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html> or contact<https://www.ssa.gov/agency/contact/> the agency directly or search<https://secure.ssa.gov/ICON/main.jsp> for a local office.

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