In an event at the White House on January 5, 2025, President Joe Biden made a significant move by signing the Social Security Fairness Act into law. This bipartisan legislation is designed to benefit public sector workers like teachers, firefighters, and police officers who also receive pension income, allowing them to enjoy increased Social Security benefits.
The newly enacted law addresses long-standing issues by eliminating two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions have impacted workers’ benefits for over 40 years. Specifically, the WEP has reduced Social Security payments for those who receive pension or disability benefits from jobs where Social Security taxes weren’t collected. By the end of 2023, this provision was affecting roughly 2 million recipients. On the other hand, the GPO has lessened benefits for spouses, widows, and widowers who have their own government pensions, impacting nearly 750,000 beneficiaries as of December 2023.
During the ceremony, Biden expressed that the legislation significantly extends benefits to a wide range of public employees, including their spouses and survivors. “An estimated average increase of $360 per month is a substantial improvement,” he remarked, highlighting how this support can make a notable difference for middle-class families.
In addition to ongoing monthly increases, an estimated 2.5 million Americans are set to receive a lump sum payment to correct the shortfall in benefits missed in 2024. The Social Security Fairness Act will influence benefits payable beyond December 2023, though the Social Security Administration has yet to release specifics on how the changes will be applied.
Commenting on the change, William Shackelford, president of the National Active and Retired Federal Employees Association, noted that with the repeal of WEP and GPO, retirees will finally receive the full benefits they’ve rightfully earned.
This legislative victory followed a Senate approval on December 21, with an impressive 76-vote bipartisan majority. Senators Sherrod Brown from Ohio and Susan Collins from Maine spearheaded the act. Prior to this, the House passed the bill in November with a strong bipartisan vote led by Representatives Garret Graves of Louisiana and Abigail Spanberger of Virginia.
The signing of the Social Security Fairness Act marks a historic moment for advocacy groups tirelessly pushing for these changes. Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, expressed satisfaction with the bill’s enactment, emphasizing years of dedicated advocacy for the repeal of the WEP and GPO.
Reflecting on this milestone, Shackelford reflected, saying, “This victory has been over 40 years in the making. While we celebrate, we also remember those who suffered under these provisions but aren’t here to see this day. We honor their legacy by advocating for fair retirement benefits for all public servants.”
