NC TSERS and Social Security After the WEP/GPO Repeal: What Changed in 2025

What the Social Security Fairness Act Did

The Social Security Fairness Act (H.R. 82), signed into law on January 5, 2025, repealed two federal provisions that had reduced Social Security benefits for certain public pension recipients:

Windfall Elimination Provision (WEP) — Reduced the Social Security retirement benefit for workers who earned a pension from employment not covered by Social Security, using a modified benefit formula that lowered their monthly payment.

Government Pension Offset (GPO) — Reduced Social Security spousal and survivor benefits by two-thirds of the recipient's government pension. In many cases, this eliminated the Social Security benefit entirely.

Both provisions are now repealed retroactively for benefits payable from January 2024 onward. The Social Security Administration paid retroactive adjustments beginning in February 2025.

Why Most TSERS Members Were Never Directly Affected

Here is the part that trips people up: TSERS members contribute to Social Security. North Carolina teachers, state employees, community college staff, and UNC system workers all pay FICA taxes on their covered earnings alongside their 6% TSERS employee contribution.

WEP targeted workers who earned a pension from employment that did not pay into Social Security — certain state and local government workers in states like Ohio, Illinois, Massachusetts, and California where public employees were exempt from Social Security. Because TSERS members do pay Social Security taxes, their primary Social Security retirement benefit was generally not subject to WEP.

GPO was more relevant in a few narrow situations: a TSERS retiree claiming Social Security spousal or survivor benefits who also had non-covered pension income from employment in another state's non-FICA system. But for the typical NC public employee who worked their entire career under TSERS, GPO rarely applied either.

What Actually Changed for TSERS Members

The repeal matters most for TSERS members who fall into these categories:

Members with prior non-covered employment — If you worked in a state where public employees did not pay Social Security (and earned a pension from that service) before joining TSERS in North Carolina, WEP may have reduced your Social Security retirement benefit. That reduction is now eliminated, and retroactive payments cover January 2024 onward.

Spouses and survivors claiming Social Security — If you or your spouse received a government pension from non-covered employment and the GPO reduced or eliminated your Social Security spousal or survivor benefit, that reduction is lifted.

Members who never filed because of WEP/GPO — If you chose not to file for Social Security benefits because WEP or GPO would have reduced them to zero, you must file a new claim with the Social Security Administration. Retroactive adjustments are automatic for existing recipients, but the SSA does not enroll or pay people who never applied.

Option 4 (Social Security Leveling) Is Unchanged

This is the most common misconception surrounding the repeal. TSERS Option 4 — Social Security Leveling — redistributes your TSERS pension payments so you receive a higher check before age 62 and a permanently reduced check after age 62. The post-62 reduction is based on your projected Social Security benefit at age 62, regardless of when you actually file for Social Security.

Option 4 is an internal TSERS calculation. It is not a federal Social Security provision. The WEP/GPO repeal did not modify, eliminate, or soften the Option 4 reduction in any way. If you retire under Option 4, your TSERS check still drops at age 62 by the exact amount shown in your benefit estimate.

Some financial advisors and online discussions incorrectly suggest that the repeal "fixed" Option 4 or made it more favorable. It did not. Treat any claim to the contrary as misinformation.

What to Do Now

If you believe WEP or GPO previously affected your Social Security benefits (or your spouse's), contact the Social Security Administration to verify your current benefit amount. Existing recipients should have already received retroactive adjustments — check your SSA.gov account to confirm.

If you never filed for Social Security spousal or survivor benefits because the offset would have eliminated them, file a new application now. The SSA will not pay retroactively to people who never applied.

For your TSERS pension planning, remember that your Social Security benefit and your TSERS benefit are separate income streams. The repeal makes Social Security more valuable for affected members, but it does not change your TSERS pension formula, payout options, or any other TSERS-specific rules.

The NC TSERS Retirement Guide explains how Social Security interacts with each TSERS payout option — including the Option 4 leveling mechanics that the repeal left untouched — so you can model your combined retirement income accurately.

See more North Carolina guides →