President Joe Biden has signed the Social Security Fairness Act into law, providing a significant boost in benefits for millions of retired Americans, including firefighters, teachers, and police officers. The new law eliminates two federal policies that had previously reduced Social Security benefits for employees with public pensions, restoring their access to the full benefits they earned.
“This law is about fairness,” Biden said at a White House ceremony before signing the bill. “Americans who have worked hard all their lives to make an honest living should be able to retire with dignity and economic security. The Social Security Fairness Act will mean an average monthly increase of $360 for more than 2.5 million retirees.”
The Social Security Fairness Act will directly impact over 2.5 million recipients, increasing their monthly payments by an average of $360. Additionally, beneficiaries will receive retroactive lump-sum payments to make up for the shortfall in benefits they should have received in 2024.
The law repeals two longstanding provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that had resulted in reduced Social Security benefits for workers with public pensions. The WEP affected retirees who had worked in both the public and private sectors, while the GPO reduced benefits for surviving spouses of public pension recipients.
“The promise has been restored,” said Edward Kelly, General President of the International Association of Fire Fighters, noting the law’s impact on retired firefighters and emergency medical workers who will now receive the full benefits they earned.
The Congressional Budget Office estimates that eliminating the WEP will increase monthly benefits by an average of $360 by December 2025. The GPO repeal will result in an average increase of $700 per month for 380,000 recipients who receive benefits based on living spouses. For surviving spouses, the increase could be as high as $1,190 per month.
Biden highlighted the significance of the law: “The law that existed denied millions of Americans access to the full Social Security benefits they earned. Today, that injustice has been corrected.”
Despite the positive changes, the law does not address the financial challenges that may arise for the Social Security Trust Fund. Martha Shedden, President of the National Association of Registered Social Security Analysts, warned that the implementation of the new benefits will pose significant challenges for the Social Security Administration.
The Social Security Administration is currently evaluating how to implement the changes, and beneficiaries do not need to take any action beyond ensuring that the agency has their correct mailing address and direct deposit information. Most people can update their information online through their “my Social Security” account.
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