President Joe Biden signed the bi-partisan Social Security Fairness Act into law, guaranteeing an increase in Social Security benefits for public sector workers who receive a pension, CNBC reports.
Biden signed the legislation on Jan. 5, paving the way for two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) to be repealed after being in place for over 40 years.
The law will allow over 2.5 million Americans to receive a lump-sum payment in the thousands to cover the benefits they should have received in 2024.
“By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses, and other public employees and their spouses and survivors,” Biden said. “That means an estimated average of $360 per month increase.”Biden called the movie a “big deal” for middle-class households as the targeted provision places limitations on benefits for public workers.
The WEP reduced Social Security benefits for people who received pension or disability benefits from employment where Social Security payroll taxes were not withheld. Approximately two million beneficiaries were affected by this provision as of December
2023. Benefits for spouses, widows, and widowers were affected by the GPO, prohibiting them from receiving income from their partner’s government pensions. The provision affected close to 750,000 beneficiaries.The Social Security Fairness Act will go into action on benefits payable after December 2023.
“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. This victory is more than 40 years in the making, and while we celebrate today, we also reflect on those who were impacted by these provisions but are no longer here to witness this change,” William Shackelford, president of the National Active and Retired Federal Employees Association, said in a statement.
“Their service and contributions are not lost on us, and we honor their legacy by continuing to advocate for fairness in retirement benefits for all public servants.”
The bill passed Dec. 21 with the support of a 76 bipartisan majority vote, including Democratic Sens. Sherrod Brown (OH) and Abigail Spanberger (VA) as well as Republican Sen. Susan Collins (ME) and Rep. Garret Graves (LA).
Though the act received bipartisan support, a number of GOP lawmakers pushed back due to the additional cost. The Congressional Budget Office quoted the law would add an estimated $195 billion to the federal deficit over the next 10 years.RELATED CONTENT: Chicago Mayors Urge Biden To Grant Presidential Pardon to Jesse Jackson Jr.