President Joe Biden signed the Social Security Fairness Act into law on Sunday, a move expected to increase Social Security benefits for nearly 3 million public sector workers, including teachers, firefighters, and police officers. The bipartisan legislation repeals two long-standing provisions-the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)-that had reduced benefits for public employees who also receive pension income.
"By signing this bill, we're extending Social Security benefits for millions of teachers, nurses and other public employees and their spouses and survivors. That means an estimated average of $360 per month increase." Biden said during the signing ceremony at the White House. The president described the measure as "a big deal" for middle-class households and a step toward ensuring economic security for retirees.
The WEP, which had been in place for more than four decades, reduced benefits for individuals receiving pensions from employment not covered by Social Security taxes. Similarly, the GPO affected spousal and survivor benefits for individuals with their own government pensions. Together, these provisions impacted approximately 2.8 million people, cutting benefits for about 3% of all Social Security recipients.
The Social Security Fairness Act, which takes effect in January 2024, will also provide lump-sum payments to affected individuals to compensate for benefits missed in 2024. Specific details on how the Social Security Administration (SSA) will implement these changes remain forthcoming, though advocates are optimistic about the relief it will provide.
Advocacy groups have lauded the repeal of these provisions as a long-overdue correction. "This victory is more than 40 years in the making," said William Shackelford, president of the National Active and Retired Federal Employees Association. "With the repeal of WEP and GPO, federal retirees, along with so many others, will finally receive the full Social Security benefits they've earned."
Labor leaders and advocacy organizations were quick to highlight the law's significance. Edward Kelly, president of the International Association of Fire Fighters, called the policy change a rectification of a "40-year wrong," emphasizing its impact on surviving spouses of public servants. "Now firefighters who get paid very little can now afford to actually retire," Kelly said.
The legislation passed with overwhelming bipartisan support in Congress, underscoring its broad appeal. The Senate approved the bill by a 76-vote majority in December, following a 327-vote bipartisan majority in the House. Key sponsors included Senators Sherrod Brown, a Democrat from Ohio, and Susan Collins, a Republican from Maine, as well as Representatives Garret Graves of Louisiana and Abigail Spanberger of Virginia.
However, the law is not without its critics. Some lawmakers expressed concern about the additional strain it may place on the Social Security Trust Fund, which faces insolvency as early as 2035. Republican Senator Thom Tillis of North Carolina argued, "We caved to the pressure of the moment instead of addressing this on a sustainable basis." Despite these reservations, supporters viewed the measure as an opportunity to rectify what they described as an inequitable federal law.
Public service unions, including the National Education Association (NEA), hailed the legislation as transformative. NEA President Becky Pringle called it "a historic victory that will improve the lives of educators, first responders, and other public service workers."
The SSA, already operating at its lowest staffing levels in decades, will face additional administrative challenges as it processes the backdated payments and adjusts benefits for millions of Americans. The agency, currently under a hiring freeze, will likely require additional resources to implement the changes effectively.
The new law follows earlier retirement-related legislation signed by Biden, including the Butch Lewis Act, which safeguarded pensions for 2 million union workers. These efforts underscore Biden's focus on strengthening retirement security for Americans, a central theme of his administration.
