Information about the Social Security Fairness Act (WEP/GPO)

01/17/2025
By Michael Rutherford

On Jan. 5, 2025, a federal law titled the Social Security Fairness Act (“SSFA”) was signed into law. This law may provide a significant financial benefit to certain eligible Massachusetts public employees when they retire from state service.

Background

Massachusetts public employees, including UMass Lowell benefited employees, pay into either the Massachusetts State Employee Retirement System (MSERS) or the Optional Retirement Plan (ORP). Adjunct faculty and temporary staff pay into the Mandatory OBRA (Smart) plan. For benefited staff, the time that they work for the university counts toward their eligibility for a pension from MSERS or the ORP. Massachusetts public employees do not pay Social Security (FICA) taxes, and their employment with the university does not constitute eligible service for the purpose of determining their eligibility towards Social Security benefits.

However, some university employees have worked, or will work, in the private sector for a sufficient amount of time to become eligible for both Social Security benefits and a public pension upon retirement.

Prior to the enactment of the SSFA, the Social Security Administration would reduce the Social Security benefit of retirees based upon provisions in the federal law known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The SSFA eliminates both the WEP and the GPO and any offset based upon a state pension.

For more information, we encourage you to read this following message from the Social Security Administration as well as the memo from the Public Employee Retirement Administration Commission.

For additional questions, contact the Benefits Office or call 978-934-4100. If you wish to discuss retirement planning, please contact Kim Casey to make an appointment or to request information on the retirement planning process.