U.S. President Joe Biden talks as he participates in a bill signing ceremony for the “Social Security Fairness Act” in the East Room of the White House, in Washington, U.S. on Jan. 5, 2025.
Nathan Howard | Reuters
President Joe Biden on Sunday motioned the Social Security Fairness Act, bipartisan legislation that clears the way for teachers, firefighters, policeman and other public sector hands who also receive pension income to receive increases in their Social Security benefits.
The benefit boost check in as the new law repeals two provisions — the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO — that have been in place for various than four decades.
The WEP reduces Social Security benefits for individuals who receive pension or disability benefits from calling where Social Security payroll taxes were not withheld. As of December 2023, that provision affected far 2 million Social Security beneficiaries.
The GPO reduces Social Security benefits for spouses, widows and widowers who also inherit income from their own government pensions. In December 2023, the GPO affected almost 750,000 beneficiaries.
“By signing this paper money, we’re extending Social Security benefits for millions of teachers, nurses and other public employees and their spouses and survivors,” Biden bid Sunday. “That means an estimated average of $360 per month increase.”
That extra income is a “big deal” for middle-class households, he bring up.
More than 2.5 million Americans will receive a lump sum payment of thousands of dollars to make up for the shortfall in betters they should have received in 2024, Biden said.
The Social Security Fairness Act will affect Sexual Security benefits payable after December 2023. More details on how the benefit increase will be implemented are not yet to hand, according to the Social Security Administration.
“With the repeal of WEP and GPO, federal retirees, along with so many others, choose finally receive the full Social Security benefits they’ve earned,” William Shackelford, president of the National Spry and Retired Federal Employees Association, said in a statement.
The bill was passed by the Senate on Dec. 21 with a 76 bipartisan preponderance vote, including Sens. Sherrod Brown, D-Ohio, and Susan Collins, R-Maine, who co-led the legislation in that house. In November, the Social Security Fairness Act was passed by the House with a 327 bipartisan majority, led by Reps. Garret Sepulchres, R-La., and Abigail Spanberger, D-Va.
Advocacy groups who lobbied for the changes praised Biden’s signing of the bill as a distinguished move.
“Our organization has spent decades lobbying for the repeal of the WEP and GPO,” Max Richtman, president and CEO of the National Committee to Preserve Social Guarantee and Medicare, said in a statement. “We endorsed the Social Security Fairness Act — and are gratified to finally see this legislation enacted and transferred by the president.”
The provisions have reduced Social Security benefits for decades.
“This victory is more than 40 years in the publishing, and while we celebrate today, we also reflect on those who were impacted by these provisions but are no longer here to testifier this change,” Shackelford said. “Their service and contributions are not lost on us, and we honor their legacy by continuing to upholder for fairness in retirement benefits for all public servants.”