Biden Signs Social Security Fairness Act, Boosting Payments for Public Employees

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President Joe Biden on Sunday signed the Social Security Fairness Act, a landmark law that increases Social Security benefits for current and retired public service workers. The measure affects nearly 3 million people, including teachers, firefighters, police officers, and other public employees who receive pensions.

The bill rescinds two longstanding provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules previously reduced Social Security payments for individuals who also received public pensions.

A Historic Fix for Public Servants

“This is a big deal,” Biden said during the White House signing ceremony. He emphasized the legislation’s intent to provide economic security and dignity for Americans who have worked hard in public service.

Labor leaders, retirement advocates, and bipartisan lawmakers attended the event, including primary sponsors Sen. Susan Collins (R-ME) and outgoing Sen. Sherrod Brown (D-OH), both of whom received a standing ovation.

The law addresses what many advocates described as a “40-year wrong.” For instance, surviving spouses of firefighters, who often saw their Social Security benefits unfairly reduced, will now receive the full amounts they earned.

How It Impacts Beneficiaries

The Congressional Budget Office (CBO) estimates the following benefit increases by December 2025:

• Windfall Elimination Provision repeal: An average monthly increase of $360 for affected recipients.
• Government Pension Offset repeal:
  • $700 average monthly increase for 380,000 living spouses receiving benefits.
  • $1,190 average monthly increase for 390,000 surviving spouses receiving widow(er) benefits.

Administrative Challenges

The changes will apply retroactively starting January 2024, requiring the Social Security Administration (SSA) to issue backdated payments. The SSA, already under strain with a hiring freeze and its lowest staffing levels in over 50 years, faces additional workload challenges as it implements the law.

Support and Criticism

The act drew praise from advocates like Edward Kelly, president of the International Association of Fire Fighters, and Becky Pringle, president of the National Education Association, who hailed it as a victory for public servants.

However, critics expressed concern over its financial implications. The annual Social Security and Medicare trustees report predicts the Social Security Trust Fund will become insolvent by 2035. The new law is expected to move that date forward by about six months.

Bipartisan Support Despite Opposition

While some Republicans, including Sens. John Thune (R-SD), Rand Paul (R-KY), and Thom Tillis (R-NC), voted against the bill, others saw it as a rare chance to correct an inequity in federal law.

“This is about fairness,” said Sen. Collins. “Public service workers deserve the benefits they’ve earned.”

A Broader Legacy on Retirement Security

The Social Security Fairness Act adds to President Biden’s record on retirement security. Earlier in his presidency, he signed the Butch Lewis Act, preserving the pensions of 2 million union workers.