Social Security Benefits for Teachers: Big Changes in 2025 for Missouri and California Educators
- David Gourley
- 1 day ago
- 4 min read
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For teachers in Missouri and California, retirement planning has always come with unique challenges. Certified educators in these states pay into pension systems, like Missouri’s Public School Retirement System (PSRS) or California’s State Teachers’ Retirement System (CalSTRS), instead of Social Security.
Until recently, that meant many teachers missed out on spousal or survivor Social Security benefits because of two federal provisions: the Windfall Elimination Provision (WEP)Â and the Government Pension Offset (GPO).
On January 5, 2025, President Biden signed the Social Security Fairness Act, repealing both WEP and GPO. For teachers, this is a game-changer. It opens up access to full spousal and survivor benefits, potentially adding thousands of dollars per year to retirement income.
Let’s break down what this means, how much teachers could gain, and how to plan around the new rules.
What Changed: Repeal of WEP and GPO
For decades, WEP and GPO reduced Social Security benefits for public employees with non-covered pensions:
WEP cut into a person’s own Social Security retirement or disability benefit. In 2025, the maximum reduction was $613/month.
GPOÂ slashed spousal or survivor benefits by two-thirds of the pension amount. A teacher with a $3,000 CalSTRS pension would lose a $1,500 spousal benefit completely.
The new law repeals both provisions for benefits payable after December 2023. By mid-2025, the Social Security Administration has already disbursed $17 billion in retroactive payments to 3.1 million beneficiaries.
For teachers, that means:
Full spousal benefits (up to 50% of a spouse’s benefit).
Full survivor benefits (up to 100% of a spouse’s benefit).
No offsets tied to pension income.
Missouri and California Social Security benefits for Teachers
Teachers in Missouri and California rarely contribute to Social Security through their teaching jobs, which leaves them uniquely exposed to WEP and GPO.
With the repeal, spousal Social Security benefits are finally on the table as a new income stream. These benefits also include annual cost-of-living adjustments (COLAs), something pensions don’t always fully provide.
Spousal benefits depend on your spouse’s Social Security benefit at Full Retirement Age (FRA). This could translate into up to $20,000 per year of additional retirement income (in today's dollars) in spousal benefits and much more for survivor benefits!
Case Studies: Real-World Impact
Here are a few examples of how teachers might benefit under the new rules.
Case Study 1: Margaret, Missouri High School Teacher
Pension: $2,800/month from PSRS
Spouse’s Social Security: $2,600/month at FRA
Before: GPO wiped out her $1,300 spousal benefit.
Now: She receives the full $1,300, raising household income to $4,100/month.
Case Study 2: David, California Elementary Teacher
Pension: $3,500/month from CalSTRS
Spouse’s Social Security: $3,000/month
Before: His $1,500 spousal benefit was completely offset.
Now: He collects the full $1,500, boosting income by $18,000/year.
Case Study 3: Linda, Missouri Widow
Pension: $2,200/month from PSRS
Late spouse’s FRA Social Security: $2,400/month
Before: GPO cut her survivor benefit to $933.
Now: She receives the full $2,400 in addition to her pension.
These examples highlight just how transformative the Fairness Act is for educators.
How to Coordinate Spousal Benefits with Other Income
While this new income is a huge win, it’s still important to coordinate benefits with other retirement resources. Key steps include:
Reviewing 403(b) contributions: These plans work like 401(k)s and can provide an additional cushion alongside pensions and Social Security.
Considering part-time work: If you’re under Full Retirement Age (FRA), earnings above $23,400 in 2025 may reduce benefits, but that limit disappears at FRA.
Evaluating taxes: Up to 85% of Social Security benefits can be taxable depending on your total income. Strategically managing withdrawals from retirement accounts can minimize the tax bite.
Factoring in healthcare and inflation: Pensions may not fully adjust for rising costs, so building flexibility into your plan is crucial.
Next Steps for Teachers
Here’s how Missouri and California educators can take advantage of the Social Security Fairness Act:
Verify eligibility – Log in at ssa.gov to estimate spousal or survivor benefits.
Update your information – Make sure the SSA has your correct banking and contact details for retroactive payments.
Plan holistically – Coordinate pensions, 403(b)s, and Social Security into one strategy.
Seek professional guidance – A fiduciary financial planner who understands teacher pensions can help maximize these new benefits.
Frequently Asked Questions
1. Can Missouri and California teachers now collect Social Security spousal benefits?
Yes. With the repeal of WEP and GPO under the Social Security Fairness Act of 2025, teachers in Missouri and California can now receive full spousal and survivor Social Security benefits, even if they paid into PSRS or CalSTRS instead of Social Security.
2. How much more money could teachers receive under the Social Security Fairness Act?
Your spousal benefits and survivor benefits are tied directly to your spouse's Social Security benefit. In 2025, you could receive a maximum of $2,000 per month in spousal benefits and be eligible for your entire survivor benefits!
3. Will these new Social Security benefits affect my pension or 403(b)?
No. Your PSRS or CalSTRS pension remains the same, and you can continue to use a 403(b) to supplement retirement income. However, Social Security benefits may be taxable depending on your overall income, so coordinating your withdrawal strategy with a financial planner is important.
Conclusion
The Social Security Fairness Act of 2025Â is a landmark change for teachers in Missouri and California. By eliminating WEP and GPO, it unlocks thousands of dollars per year in spousal and survivor Social Security benefits.
For educators relying on PSRS or CalSTRS, this isn’t just a boost; it’s a chance to build a stronger, more flexible retirement plan.
If you’re a teacher navigating these changes, don’t leave money on the table. Start by checking your eligibility at ssa.gov and consider working with a financial planner who specializes in teacher retirement planning.
You’ve given decades of service in the classroom; now it’s time to secure the retirement you’ve earned.
David Gourley is the Founder and lead Financial Planner at K-12 Planning, an independent financial planning firm specializing in finance for teachers. He served for eight years as a high school mathematics teacher before transitioning into the financial services industry. He started K-12 Planning in 2024, and his passion for serving as a fiduciary for teachers and a student loan planning expert runs deep, as his wife and several other family members have served as educators for years.