President Joe Biden Signs Social Security Fairness Act
Major Boost in Benefits for Public Sector Workers
President Joe Biden signed the Social Security Fairness Act on Sunday, a bipartisan legislation that will bring significant increases in Social Security benefits for teachers, firefighters, police officers, and other public sector workers who also receive pension income.
What Does the Social Security Fairness Act Do?
This new law repeals two long-standing provisions – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – that have been in place for over four decades. The WEP reduces benefits for individuals who receive pension or disability benefits from jobs where Social Security taxes were not withheld, affecting about 2 million beneficiaries. The GPO reduces benefits for spouses, widows, and widowers who have their own government pensions, impacting almost 750,000 individuals.
President Biden’s Announcement
President Biden stated, “By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses, and other public employees and their spouses and survivors, with an estimated average increase of $360 per month. This extra income is a game-changer for middle-class households.”
Impact on Beneficiaries
Over 2.5 million Americans will receive a lump-sum payment to make up for the shortfall in benefits they should have received in 2024. The Social Security Fairness Act will affect benefits payable after December 2023, with implementation details pending from the Social Security Administration.
Historic Move and Advocacy
Advocacy groups commended the signing of the bill as a historic achievement. William Shackelford, president of the National Active and Retired Federal Employees Association, stated, “With the repeal of WEP and GPO, federal retirees and others will finally receive the full Social Security benefits they’ve earned.”
Legislative Process
The bill received bipartisan support in both the Senate and House, led by Senators Sherrod Brown and Susan Collins in the Senate, and Representatives Garret Graves and Abigail Spanberger in the House. Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, expressed gratitude for the enactment of the legislation after years of advocacy.
Celebrating a Long-Awaited Victory
Shackelford reflected on the impact of these provisions over the past 40 years and honored those who were affected but did not live to see this change. The fight for fair retirement benefits continues in their memory.