Social security fairness act signed into law: Who gets the benefits?

Biden highlights fairness of law, repealing WEP and GPO to boost retirees' benefits

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Biden signed the Social Security Fairness Act into law on Sunday, ensuring that nearly 3 million public sector employees, retirees, spouses, and surviving spouses will receive larger monthly Social Security payments.

This legislation repeals two provisions that previously reduced or eliminated benefits for certain government retirees, including those in the Civil Service Retirement System (CSRS) and public sector workers such as teachers, police officers, and firefighters.

During the bill-signing ceremony at the White House, Biden emphasized the fairness of the law.

The provisions being repealed—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—had affected the amount of Social Security benefits available to millions of retirees.

WEP had reduced Social Security payments for individuals who worked in government positions but also held jobs covered by Social Security. GPO had impacted Social Security payments for spouses and surviving spouses of individuals with government pensions.

The changes in the law will provide significant financial relief, with increased monthly payments expected for affected individuals by December 2025.

The Social Security Fairness Act, which has been reintroduced in Congress for years, gained significant traction last year. It was passed in the House in November and in the Senate by December.

While supporters argue that the bill brings fairness to public sector retirees, some critics have warned that its passage could accelerate Social Security’s projected insolvency by increasing costs.

What the Social Security Fairness Act Does:

• The law eliminates the Windfall Elimination Provision and the Government Pension Offset, which reduced or eliminated Social Security benefits for public sector retirees, spouses, and surviving spouses.
• WEP removal will increase payments by an average of $360 per month for affected individuals by December 2025.
• GPO removal will raise payments by an average of $700 for impacted spouses and $1,190 for surviving spouses by December 2025.
• The Congressional Budget Office (CBO) estimates the bill could cost nearly $200 billion over a decade, and raise Social Security costs by about 1%, potentially bringing forward the insolvency date by half a year.
• The increased payments will be retroactively applied to January 2024.

Who Qualifies for Benefits Under the Social Security Fairness Act:

• Individuals who worked in government jobs that were not covered by Social Security but have also worked in jobs covered by Social Security. This includes federal retirees in the Civil Service Retirement System (CSRS) and many public sector workers like teachers, firefighters, and police officers.
• The spouses and surviving spouses of individuals receiving government pensions will also benefit from increased Social Security payments under the repeal of GPO.
• Those who are retired under CSRS or another government pension program that had been impacted by WEP or GPO will see an increase in their Social Security benefits.

The Social Security Administration will soon publish additional details about the law's implementation, providing further guidance on the payment increases and their timing.