Mobility Matters
Repeal of the Windfall Elimination Provision: Effect on Retirement Income for Assignees and Cross-Border Workers
October 2025 | By Brent Jackson, KPMG LLP (U.S.), Washington National Tax practice, Washington, D.C.
 
				
			The Social Security Fairness Act of 2025 has fundamentally changed the landscape for cross-border workers by repealing the Windfall Elimination Provision (WEP). Historically, the WEP was a major challenge for internationally mobile professionals, as it reduced U.S. Social Security benefits for those who also qualified for a foreign pension. This policy often penalized individuals for their global experience, creating financial uncertainty and acting as a deterrent to accepting international assignments.
With the WEP now repealed, the U.S. Social Security system better aligns with the realities of a global workforce. Workers who have contributed to both U.S. and foreign social security systems can now receive their full U.S. benefits, reflecting the true value of their international careers. This change not only increases post-retirement income for assignees and their families but also encourages greater labor mobility by removing a key financial obstacle.
For employers, this policy shift means greater flexibility in deploying talent across borders and a stronger value proposition for international assignments. Employees may pursue global opportunities with confidence, knowing their retirement security is protected. The repeal of the WEP underscores the importance of understanding both home and host country social security systems, and highlights the need for strategic planning to optimize benefits and compliance.
As organizations and professionals map the evolving landscape of global mobility, the end of the WEP stands as a milestone, supporting a more dynamic, mobile, and financially secure workforce for the future.
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Repeal of the Windfall Elimination Provision: Effect on Retirement Income for Assignees and Cross-Border Workers
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