Social Security Just Got Fairer: What the New Law Means for Retired Public Workers

Millions of teachers, firefighters, police officers, and other public workers are set to see a significant boost in their Social Security benefits. President Joe Biden has signed the Social Security Fairness Act into law, addressing long-standing issues that have reduced retirement payments for public sector employees.

The new legislation eliminates key provisions that previously penalized individuals who earned government pensions, ensuring they now receive full Social Security benefits.

What Does the Law Change?

The Social Security Fairness Act repeals two controversial provisions:

• Windfall Elimination Provision (WEP): This rule reduced Social Security payments for individuals who also received a government pension from jobs not covered by Social Security.
• Government Pension Offset (GPO): This provision lowered spousal or survivor Social Security benefits for those receiving government pensions.

By removing these provisions, the new law ensures that retirees in public service jobs can now access their full Social Security benefits, regardless of their government pension.

How Much Will Benefits Increase?

The repeal of WEP and GPO is expected to raise monthly Social Security payments for affected individuals. On average, retirees will see an increase of $360 per month, with some receiving as much as $1,190 depending on their work and pension history.

These changes are retroactive to January 2024, meaning eligible recipients will also receive lump-sum payments to make up for the higher benefits they missed over the past year.

A Win for Public Service Workers

The Social Security Fairness Act addresses decades of frustration for millions of retired public service workers. President Biden praised the law, saying, “Americans who have worked hard all their lives to serve their communities deserve a secure retirement.”

Senate Majority Leader Chuck Schumer called it a “historic victory,” adding that it rights a long-standing wrong for public workers whose retirement payments were unfairly reduced.

What’s Next?

While this law is a major win for public workers, it also raises questions about Social Security’s long-term funding. The Congressional Budget Office estimates that the repeal of WEP and GPO will add $195 billion to the federal deficit over the next decade. With the Social Security Trust Funds facing potential insolvency by 2035, lawmakers will need to address the program’s broader financial challenges.

For now, public service workers can celebrate this much-needed reform, which acknowledges their contributions and secures their financial futures.