Joe Biden Signs Historic Social Security Fairness Act, Boosting Benefits for Millions of Public Workers
On 5th January 2025, the outgoing President Joe Biden signed the Social Security Fairness Act, and thus 3 million public workers will see their Social Security benefits augmented.
The bipartisan legislation will also negate two earlier provisions which cut Social Security benefits for some public employees who also receive pension benefits.
The move has been hailed by advocacy groups who have been calling for the amendments for decades. The legislation will increase Social Security benefits for teachers, firefighters, policemen, and other public sector workers who are beneficiaries of pension schemes and were denied these benefits earlier.
The two earlier laws, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have been in effect for more than four decades, are now null and void.
The Windfall Elimination Provision (WEP) cut the Social Security benefits for persons who receive pension or disability benefits when employed with an entity where Social Security payroll taxes were not withheld. The provision reduced Social Security benefits for 2 million beneficiaries.
The Government Pension Offset (GPO) slashed Social Security benefits for spouses, widows, and widowers who are the beneficiaries of their own government pensions. The provision reduced Social Security benefits for 750,000 beneficiaries.
Joe Biden Signs Landmark Social Security Fairness Act
Joe Biden, while signing the legislation on Sunday, 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. That means an estimated average of $360 per month increase.”
Joe Biden also added that the augmented income will be a great help for middle-income households.
The Social Security Fairness Act is now law.
— NEA (@NEAToday) January 5, 2025
Millions of retired educators, first responders, and other public service workers will get their full Social Security—benefits they earned. pic.twitter.com/uI2pZnAqDF
The arrears for the shortfall in benefits they should have received in 2024 will be paid to more than 2.5 million Americans as a lump sum and could amount to thousands of dollars. The latest legislation will affect Social Security benefits payable after December 2023.
William Shackelford, president of the National Active and Retired Federal Employees Association, stated:
“With the repeal of WEP and GPO, federal retirees, along with so many others, will finally receive the full Social Security benefits they’ve earned.”
The bill cleared the Senate in a vote on December 21st with a 76 bipartisan majority vote, while the legislation was passed by the House with a 327 bipartisan majority vote.
Many advocacy groups have been lobbying for the amendments and the repeal of WEP and GPO. Joe Biden’s signing of the bill has been hailed by the groups as a historic move after more than four decades of struggle and lobbying.
Also Read: December 2024 Social Security Payments: Schedule, Eligibility, and COLA Adjustments Explained
