President Joe Biden enacted the Social Security Fairness Act this past weekend. This legislation will enhance Social Security benefits for millions of American retirees by removing two provisions that had reduced benefits for specific public sector workers.
The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) had lessened benefits for retirees receiving pension income, affecting public employees such as police, firefighters, nurses, postal workers, public school educators, and other government staff. “Today, I’m signing a bill centered on a straightforward idea: Americans who have toiled throughout their lives for a decent wage should be able to retire with both financial security and dignity,” stated President Biden.
He projected that the new law would result in an average monthly boost of $360 for certain public employees, their spouses, and survivors. An estimated 2.5 million Americans are likely to get a one-time payment to make up for benefits they missed last year. The legislation was passed by the House of Representatives in November and received Senate approval via a 70-26 vote last month.
Biden raises benefits for retirees
The projected cost of the legislation stands at $196 billion over the next decade. Eligible public sector employees for enhanced benefits will consist of anyone working for the government, a government-funded agency, or an educational institution.
Senate Majority Leader Chuck Schumer, D-N.Y., referred to the bill as “a wonderful gift for our retired firefighters, police officers, postal workers, teachers, and others.”
Nonetheless, not all are in favor of the legislation. Opponents, including Sen. Chuck Grassley, R-Iowa, contend that the bill could lead to inequitable benefit calculations.
Some critics caution that this might jeopardize the overall Social Security fund, which is reportedly less than ten years away from possible insolvency. Sen. Thom Tillis, R-N.C., expressed worries that the Fairness Act could hasten this predicament. The Social Security Administration (SSA) is currently evaluating how to implement the new law and will soon provide additional information.
Individuals who have already filed for Social Security benefits do not need to take any action other than updating their mailing and direct deposit information if required. For those who have not yet filed and wish to do so, the SSA recommends making an appointment.
