Social Security Offsets: WEP & GPO
In most cases, employees of the State of Louisiana who are members of LASERS are not required to pay Social Security tax. However, if you are entitled to a Social Security benefit, either your own from private sector employment or a spouse’s or widow/widower’s benefit, that benefit may be reduced because of the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).
Your LASERS benefit will NOT be reduced, but you should be prepared for a reduction in your Social Security benefits.
The LASERS Board of Trustees considers the reduction or elimination of the WEP and GPO as a significant Board issue. However, any change to these offsets must be made on the federal level. LASERS continues to track federal and state legislation regarding changes to the WEP and GPO and will keep members informed as changes occur. RSEA also monitors legislation and is committed to the elimination of the offsets.
Why are my Social Security benefits potentially reduced or eliminated?
Originally, the State of Louisiana was not allowed to participate in Social Security to provide coverage for its public employees. When Social Security was later open to public employees, Louisiana did not opt into coverage.
Both WEP and GPO are designed to offset the amount of Social Security benefits paid to those eligible to receive some other type of public pension; in this case your LASERS retirement. The type of Social Security benefit a LASERS member is eligible to receive determines how Social Security reductions will be applied.
The Windfall Elimination Provision or WEP does not apply to survivors’ benefits. It applies to a benefit you earned because of private sector employment.
A modified benefit formula is used to calculate your Social Security benefit amount if you get a LASERS pension, resulting in a lower Social Security benefit.
You may be able to avoid the Social Security offset if you meet one of these criteria*:
- You were age 62 or disabled before 1986, or
- You qualified for a LASERS retirement benefit, including a reduced benefit, by having worked at least 10 years before September 1, 1985 (but had not attained normal retirement age or retired prior to that date), or
- You have at least 30 years of “substantial” earnings in a job where you paid Social Security taxes. If you have between 21 and 29 years of substantial earnings, you should not be subject to the full reduction.
LASERS can provide you with a letter indicating the date of your first retirement eligibility which you can submit to the Social Security Administration. Please request the letter at least three months prior to reaching age 62.
* Only Social Security can make the final determination.
There are many variables in calculating Social Security benefits, so we encourage you to make an appointment with the Social Security office at least three months before you reach the age of 62. They can answer your questions and calculate your reduced benefit.
Timeline of Federal Efforts to Repeal the WEP & GPO
The timeline below illustrates federal efforts to repeal the WEP and GPO since 2022. The most up-to-date developments of H.R. 82 (Social Security Fairness Act) are available here.
Watch the Video
This video explains how the federal offsets, WEP and GPO, can affect your Social Security benefit if you receive a LASERS pension.