President Biden took action on Sunday by signing into law a bill that aims to enhance Social Security benefits for retired Americans. This legislation will benefit various individuals, such as firefighters, police officers, and teachers, who have dedicated their lives to public service.
“Retiring with economic security and dignity should be a possibility for hardworking Americans who have dedicated their lives to honest work,” stated Mr. Biden during a gathering at the White House. He went on to sign the Social Security Fairness Act, which he explained would result in an average monthly increase of $360 for over 2.5 million Social Security recipients.
President Biden emphasized the significance of this development in middle-class households, similar to the one I was raised in and many of you were as well.
Beneficiaries will also receive a lump sum in the thousands of dollars to compensate for the reduced benefits they were supposed to receive in 2024, according to the president.
The Social Security Fairness Act aims to remove two federal policies that have prevented employees with a public pension from receiving their full benefits through the federal retirement program. Additionally, it seeks to eliminate the reduction of benefits for surviving spouses and family members of these workers.
According to a statement from a White House spokesperson, President Biden has become the first president in over two decades to enhance Social Security benefits. The spokesperson stated that the bill being signed by the President will result in an expansion of benefits, amounting to hundreds of dollars per month for over 2.5 million Americans.
Seventeen-year-old Eliseo Jimenez, a high school senior from Lubbock, Texas, joined Mr. Biden at the signing ceremony. Eliseo embarked on a 40-day journey from his home to Washington, D.C. during the summer. The purpose of his trek was to raise funds for his charity, which aims to support individuals with disabilities and senior citizens. Eliseo was inspired to take on this challenge after witnessing the hardships faced by his grandmother and her elderly neighbors, who struggled to make ends meet with their monthly benefits.
President Biden signed the new law just weeks before the end of his presidency. The measure, known as H.R. 82, was approved by House lawmakers in November. It passed the Senate on December 21 with a vote of 76-20, right before the conclusion of the 118th Congress.
The Senate first delved into the policies aimed at improving Social Security payments for public pension recipients back in 2003, marking the beginning of a long-standing effort.
The Social Security Fairness Act received support from both Democrats and Republicans, however, some Republicans raised concerns about its cost at the last minute. The Congressional Budget Office estimates that the law would increase the federal deficit by approximately $195 billion over a period of ten years.
Under the new law, the increase in benefits will apply retroactively starting from December 2023. This means that individuals who were previously receiving partial benefits will now receive a full payment dating back to a year ago.
The new Social Security law has repealed two policies that have been causing a reduction in Social Security payments for 2.5 million retirees. These policies, known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), have now been eliminated.
In a statement on Sunday, General President Edward Kelly of the International Association of Fire Fighters expressed his disappointment with Congress, stating that they had “broken a promise” by implementing the Windfall Elimination Provision and the Government Pension Offset.
“Today, we have restored that promise, ensuring that retired firefighters and emergency medical workers will now receive the Social Security benefits they have rightfully earned and contributed to,” Kelly stated confidently.
According to the Associated Press, the elimination of the WEP (Windfall Elimination Provision) is projected to result in an average increase of $360 in monthly payments to Social Security recipients affected by the provision by December 2025, as estimated by the Congressional Budget Office in September.
According to the agency’s findings, eliminating the GPO would result in a significant boost to monthly benefits for various recipients. Specifically, around 380,000 individuals receiving benefits based on living spouses would see an average increase of $700 starting from December 2025. Additionally, approximately 390,000 surviving spouses receiving widow or widower benefits would experience an average increase of $1,190.
“The existing law deprived millions of hardworking Americans of their rightful access to full Social Security benefits,” stated Mr. Biden upon enacting the legislation.
Martha Shedden, president of the National Association of Registered Social Security Analysts, emphasized that although the new law fails to tackle the significant financial consequences on the trust funds and the complex implementation procedures that the Social Security Administration will have to undertake.
The Social Security Administration announced on Monday that it is currently assessing the best way to implement the act. To receive the increased payments, beneficiaries are only required to ensure that the agency has their current mailing address and direct deposit details. Fortunately, most individuals can easily do this online through their “my Social Security account,” eliminating the need to call or visit the SSA.
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