President Joe Biden signed the Social Security Fairness Act on Sunday, marking a significant milestone for public sector employees across the nation. This bipartisan legislation aims to increase Social Security benefits for teachers, firefighters, police officers, and other public workers who have faced longstanding reductions in their financial support.
The Social Security Fairness Act addresses two provisions that have negatively impacted benefits for decades: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP reduces Social Security benefits for individuals who have worked in jobs where Social Security payroll taxes were not withheld, while the GPO affects spouses, widows, and widowers receiving government pension income. As of December 2023, nearly 2 million beneficiaries were affected by the WEP, and approximately 750,000 by the GPO.
The bill received considerable bipartisan support, passing the Senate on December 21 with a 76- vote majority and previously securing a 327-vote majority in the House in November. Co-led by Senators Sherrod Brown (D-Ohio) and Susan Collins (R-Maine), along with Representatives Garret Graves (R-La.) and Abigail Spanberger (D-Va.), the legislation reflects a collaborative effort to enhance the financial security of public workers.
"By signing this bill, we're extending Social Security benefits for millions of teachers, nurses and other public employees and their spouses and survivors," Biden stated during the signing ceremony. He emphasized the significance of the legislation, noting that it would result in an estimated average increase of $360 per month for affected beneficiaries. "That extra income is a 'big deal' for middle-class households," he added.
In addition to monthly increases, the Social Security Fairness Act is expected to provide more than 2.5 million Americans with lump sum payments to compensate for benefit shortfalls they should have received in 2024. This financial relief comes as a crucial support system for retirees who have dedicated their careers to serving their communities.
William Shackelford, a representative of the National Active and Retired Federal Employees Association, praised the signing of the bill as a historic move. "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," Shackelford remarked.
The Social Security Fairness Act will take effect for benefits payable after December 2023, ushering in a new era of financial security for millions of public sector workers and their families.
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