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<blockquote data-quote="Darmark7" data-source="post: 6039991" data-attributes="member: 83127">The new law repeals two old provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that reduced <a href="https://www.investopedia.com/terms/s/socialsecurity.asp" target="_blank">Social Security</a> benefits for public sector workers who receive <a href="https://www.investopedia.com/terms/p/pensionplan.asp" target="_blank">pensions</a>.&nbsp;&nbsp; What Does This New Law Do?Enacted in 1983 to bolster Social Security&#039;s finances, the Enacted in 1983 to bolster Social Security&#039;s finances, the WEP limited retirement and disability benefits for workers who are eligible for Social Security benefits but receive pensions from jobs that don&#039;t withhold Social Security taxes. By repealing WEP, the formula for calculating benefits will change and those workers will receive larger benefits.The now rescinded provisions affected the amount of Social Security benefits that workers earned if they received retirement or disability pensions from jobs where they didn&#039;t pay <a href="https://www.investopedia.com/terms/s/social-security-tax.asp" target="_blank">Social Security taxes</a>. The GPO, enacted in 1977, reduced the <a href="https://www.investopedia.com/ask/answers/081915/how-are-spousal-benefits-calculated-social-security.asp" target="_blank">spouse&#039;s</a> and surviving spouse&#039;s Social Security benefits for those who receive their own government pensions through jobs that don&#039;t pay Social Security taxes. Under the GPO, someone would have their monthly spousal benefit reduced by two-thirds of the value of their pension. Without the GPO, retirees wouldn&#039;t have their spousal benefits offset by their pension. It&#039;s estimated that roughly 1% of beneficiaries have their benefits reduced by the GPO.&nbsp; Critics of the law argue that it would accelerate the depletion of the Social Security trust fund and increase the deficit by more than $196 billion.</blockquote>

[QUOTE="Darmark7, post: 6039991, member: 83127"] The new law [B]repeals two old provisions[/B]—the Windfall Elimination [B]Provision (WEP)[/B] and the Government Pension Offset [B](GPO)[/B]—that reduced [URL='https://www.investopedia.com/terms/s/socialsecurity.asp']Social Security[/URL] benefits for public sector workers who receive [URL='https://www.investopedia.com/terms/p/pensionplan.asp']pensions[/URL]. What Does This New Law Do? Enacted in 1983 to bolster Social Security's finances, the Enacted in 1983 to bolster Social Security's finances, [B]the WEP[/B] limited retirement and disability benefits for workers who are eligible for Social Security benefits but receive pensions from [B]jobs that don't withhold Social Security taxes[/B]. By repealing WEP, the formula for calculating benefits will change and those workers will receive larger benefits. The now rescinded provisions affected the amount of Social Security benefits that workers earned if they received retirement or disability pensions [B]from jobs where they didn't pay [URL='https://www.investopedia.com/terms/s/social-security-tax.asp']Social Security taxes[/URL].[/B] [B]The GPO[/B], enacted in 1977, reduced the [URL='https://www.investopedia.com/ask/answers/081915/how-are-spousal-benefits-calculated-social-security.asp']spouse's[/URL] and surviving spouse's Social Security benefits for those who receive their own government pensions through [B]jobs that don't pay Social Security taxes[/B]. Under the GPO, someone would have their monthly spousal benefit reduced by two-thirds of the value of their pension. Without the GPO, retirees wouldn't have their spousal benefits offset by their pension. It's estimated that roughly 1% of beneficiaries have their benefits reduced by the GPO. Critics of the law argue that it would accelerate the depletion of the Social Security trust fund and increase the deficit by more than $196 billion. [/QUOTE]

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