The Social Security Fairness Act Could Boost Payments for Over 3.2 Million Americans

 The Social Security Fairness Act Could Boost Payments for Over 3.2 Million Americans

One of former President Joe Biden’s final actions in office could result in significant increases in Social Security retirement benefits for millions of Americans. On January 5, Biden signed the Social Security Fairness Act (SSFA) into law, which repealed two key benefit rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that previously reduced benefits for certain public employees.

Understanding WEP and GPO

These provisions were originally designed to prevent workers from receiving what was considered an “unfair” advantage by qualifying for both public pensions and Social Security retirement benefits.

• Windfall Elimination Provision (WEP): This provision reduced Social Security benefits for workers who received pensions from jobs where Social Security taxes were not withheld.
• Government Pension Offset (GPO): This rule reduced or eliminated spousal or survivor benefits for individuals who received public pensions from jobs that did not contribute to Social Security.

An estimated 3.2 million people were negatively impacted by these rules, according to the Social Security Administration (SSA). With the repeal, eligible Americans may now see monthly payments increase by up to $1,190, depending on their situation.

Who Qualifies for Increased Benefits?

The repeal mainly benefits public employees, such as teachers, firefighters, and law enforcement officers, who had been receiving reduced Social Security benefits due to WEP and GPO. However, not everyone in these groups will see increased payments. Only those who:

1. Receive a pension based on non-Social Security-covered work may see larger benefits.
2. Had side jobs or prior work that qualified them for Social Security benefits before their public sector job.

For example, teachers in Massachusetts who contribute to a state retirement system and don’t pay into Social Security may have been receiving smaller retirement benefits due to these provisions. With the repeal, these workers can now receive the full benefits they earned based on their work history.

Surviving spouses who previously lost access to spousal or survivor benefits due to their own public pensions can now access 100% of their spouse’s benefits once they reach full retirement age, even if they have a public pension.

When Will the Benefits Kick In?

Those who were already collecting Social Security benefits before January 2024 should see their payments recalculated automatically. Additionally, they will receive a retroactive lump sum for the difference since January 2024. Most beneficiaries can expect their one-time retroactive payment by the end of March, and the higher monthly benefits should start appearing by April.

For those who have become eligible for retirement benefits since January 5, or have delayed applying due to WEP or GPO, the SSA will ensure they receive accurate payments as soon as they start collecting benefits.

Criticism and Concerns

While the repeal of WEP and GPO is seen as a victory for millions, critics argue that the increase in benefits could accelerate Social Security's insolvency, which is already projected to occur by 2035 unless reforms are made.

Conclusion

The Social Security Fairness Act promises to boost payments for millions of Americans who were previously penalized due to their public pensions. The SSA is moving quickly to implement these changes, with retroactive payments and increased monthly benefits set to begin in March and April. However, the long-term impact of this legislation on Social Security’s financial stability remains a concern.

For more information, beneficiaries can visit the SSA’s website dedicated to updates on the Social Security Fairness Act and how it will affect their benefits.