Social Security Fairness Act signed into law by Biden, enhancing retirement benefits for millions

President Biden has signed new legislation aimed at expanding Social Security benefits for millions of retired Americans, including firefighters, police officers, and teachers. The Social Security Fairness Act abolishes two federal policies—known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that limited benefits for employees with public pensions and their surviving family members.

With this signing, President Biden becomes the first U.S. president in over 20 years to enhance Social Security benefits. According to a White House spokesperson, the changes will provide an increase of hundreds of dollars per month to more than 2.5 million Americans. The new law, officially known as H.R. 82, was passed by the Senate on December 21 with a vote of 76-20 and had already received House approval in November.

The journey to reform these Social Security policies has spanned nearly two decades, with the Senate first addressing the issue as far back as 2003. Although the Social Security Fairness Act garnered bipartisan support, it faced resistance from some Republicans concerned about its projected costs. The Congressional Budget Office estimates that the legislation will add approximately $195 billion to the federal deficit over the next decade.

One significant aspect of the law is that benefits will be retroactive to December 2023, allowing eligible retirees who previously received partial benefits to claim full payments dating back a year. The elimination of WEP is projected to increase monthly payments by an average of $360 for impacted recipients by December 2025.

Additionally, the repeal of the GPO is expected to increase monthly benefits by an average of $700 for approximately 380,000 recipients and about $1,190 for 390,000 surviving spouses receiving widow or widower benefits. This legislative change marks a substantial improvement in financial support for retired public employees and their families.