Good news for millions of Americans! President Joe Biden has just signed the Social Security Fairness Act into law, which means higher Social Security payments for many individuals. This law, which passed with support from both political parties, will bring significant changes to how Social Security benefits are calculated.
What’s Changing?
The new law removes two important provisions that have been reducing Social Security benefits for certain workers: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These changes could mean an average increase of $360 per month for people affected by the WEP and $700 per month for those impacted by the GPO.
When Will You See the Change?
According to the Congressional Budget Office (CBO), these changes will kick in by December 2025. But here’s the best part: the Social Security Administration will start paying back any amounts owed from January 2024 onward, thanks to a special adjustment process. This could mean some extra funds in your pockets sooner than you expect!
Who Will Benefit the Most?
The law is great news for public sector workers who have had their benefits reduced because they were receiving pensions not covered by Social Security. This includes police officers, firefighters, teachers, and other public employees.
For example:
- Firefighters and other first responders, including the International Association of Fire Fighters (IAFF) members, will see a much-needed boost to their benefits.
- Around 2.1 million people affected by the WEP and nearly 745,000 impacted by the GPO will see a positive impact on their Social Security checks.
Real Voices, Real Impact
Many public service workers are excited to see this change. Edward Kelly, president of the IAFF, shared that firefighters are thrilled to see this 40-year-long injustice finally corrected. “We’ve righted a wrong,” he said.
Lee Saunders, president of the American Federation of State, County, and Municipal Employees (AFSCME), added that over 2 million public workers will now be able to enjoy the Social Security benefits they’ve worked hard for.
Former Senator Sherrod Brown, who co-sponsored the bill, emphasized how important this is for middle-class Americans: “You pay into it for 40 quarters, you earned it. It should be there when you retire.”
On the flip side, not everyone agrees with the change. Senator Thom Tillis, who voted against the bill, expressed concerns about the long-term financial sustainability of Social Security.
What’s Next?
While this change is a big win for many, there are some ongoing challenges ahead. Advocates argue that the law addresses a long-standing fairness issue, but it also adds pressure to Social Security’s future finances. The Social Security Trust Funds are already facing challenges and could be fully drained by the mid-2030s. At that point, benefits could be reduced by 20% unless changes are made.
So, while we can celebrate this milestone, it’s important to keep an eye on the future and continue the conversation about how to ensure Social Security remains strong for everyone.
This is a major step forward for fairness in Social Security, and it’s exciting to see so many people finally get the benefits they’ve earned. Stay tuned for more updates as these changes start to take effect!