Retiring with a pension & Social Security: What changed in 2026

If you spent years working as a teacher, firefighter, police officer or federal employee, you may have planned your retirement expecting a smaller Social Security benefit because of your pension. That's changed. In January 2025, Congress repealed the two rules responsible for those reductions, and the change applies retroactively to January 2024.

If you're retiring with a pension in the next few years, or you're already retired and affected by this, it's worth taking a fresh look at your numbers. Here's what changed, who it affects and how to make sure you're getting the benefit you've earned.

No, a pension no longer reduces most retirees' Social Security benefits. The Social Security Fairness Act, signed into law in January 2025, repealed the two federal rules that used to cause those reductions. Here's how the repeal works and who it affects.

Before 2025, two federal rules, the WEP and the GPO, could reduce your Social Security benefits if you received a pension from work that wasn’t covered by Social Security payroll taxes.

Here’s a quick look at those provisions:

• The Windfall Elimination Provision (WEP) formerly reduced a person's own Social Security retirement or disability benefit if they also received a pension from noncovered employment.
• The Government Pension Offset (GPO) formerly reduced or eliminated Social Security spousal and survivor benefits for some people receiving those pensions.

These rules mostly impacted teachers, firefighters, police officers, Civil Service Retirement System (CSRS) federal employees and some retirees with foreign pensions.

The Social Security Fairness Act repealed both provisions, applying retroactively to benefits payable starting in January 2024, one year before it was signed. That means if the WEP or GPO reduced your benefit before 2024, you may now be eligible for a higher monthly benefit—plus retroactive pay—dating back to January 2024.

The Social Security Fairness Act made one focused change—it removed the benefit reductions caused by WEP and GPO.

It did not:

• Increase Social Security benefits for everyone
• Change Social Security payroll taxes
• Affect Medicare eligibility
• Change eligibility requirements for Social Security retirement, disability or survivor benefits

Not everyone retiring in 2026 will see higher Social Security benefits because of the Social Security Fairness Act.

You may benefit if:

• You receive a pension from work that didn't pay Social Security payroll taxes.
• You earned enough Social Security credits through other employment to qualify for retirement benefits.
• You retired under the CSRS.
• You're a retired teacher, firefighter, police officer or other public employee whose employer didn't participate in Social Security.
• Your Social Security spousal or survivor benefits were previously reduced or eliminated because of the GPO.

You also may be affected if you received a notice from the Social Security Administration (SSA) indicating your benefits were reduced because of WEP or GPO.

On the other hand, if you worked only in private-sector employment where Social Security taxes were withheld, you were never subject to WEP or GPO. Likewise, federal employees covered solely by the Federal Employees Retirement System (FERS) generally weren't affected by these provisions, so the repeal doesn't change their Social Security benefits.

If you or a loved one decided not to apply for spousal or survivor benefits because you expected the GPO to reduce or eliminate them, the repeal may mean you're now eligible to receive benefits that were previously reduced or unavailable to you.

To find out whether these changes affect your situation, talk to a financial advisor, or visit SSA.gov to fill out an application and see if you qualify.

More than 2.8 million people had their Social Security benefits reduced or eliminated under WEP or GPO. The Social Security Administration already has processed retroactive payments and benefit increases for most of them.

If you haven't seen an adjustment yet, here's what to do.

1. Log in to your my Social Security account to review your current benefit information and any notices explaining changes to your monthly payments or retroactive benefits. If you've received letters from the SSA about benefit adjustments, review those as well.
2. Confirm that the SSA has your current mailing address and direct deposit information. Keeping your contact information up to date can help prevent delays if you're owed additional benefits.
3. Contact the SSA if you believe you're owed a retroactive payment but haven't received one, or if you have questions about your benefit amount or eligibility. Before you call, have your Social Security number, pension information and any correspondence you've received from the SSA available.

While it's true that Social Security benefits receive favorable tax treatment, keep in mind that a retroactive lump-sum payment may increase your taxable income in the year you receive it. If you receive a larger payment than expected, talking with a financial advisor or tax professional can help you understand any tax implications and decide how those funds fit into your overall retirement income plan.

Now that WEP and GPO no longer reduce benefits for many retirees, deciding when to claim Social Security is one of the most important parts of your retirement income strategy.

You can begin collecting Social Security as early as age 62, but claiming before your full retirement age permanently reduces your monthly benefit. Waiting until full retirement age gets you your standard benefit, and delaying further, up to age 70, increases your monthly payment through delayed retirement credits.

If your pension provides enough income early in retirement, waiting to claim Social Security could increase your monthly benefit and give you greater lifetime income. If you have a smaller pension or need income sooner, claiming earlier can make more sense. The right approach depends on your health, longevity expectations, marital status, other retirement assets, personal goals and income needs.

Receiving a larger Social Security benefit also can affect other parts of your financial picture. Depending on your overall income, it could increase your federal income taxes or affect your Medicare Part B and Part D premiums through Income-Related Monthly Adjustment Amounts (IRMAA).

Instead of making each retirement decision on its own, consider how your pension, Social Security, retirement accounts, health care and taxes work together. Looking at the full picture can help you create a more predictable income stream through retirement.