President Biden recently signed legislation expanding Social Security benefits for retired Americans, including firefighters, police officers, and teachers. This new law, called the Social Security Fairness Act, will provide an average monthly increase of $360 for over 2.5 million Social Security recipients. The beneficiaries will also receive a lump sum to make up for the shortfall in benefits they should have received in 2024. This marks the first time in over 20 years that Social Security benefits have been expanded, with President Biden being the first president to do so.
The Social Security Fairness Act eliminates two federal policies that previously prevented employees with a public pension from receiving their full benefits under the federal retirement program and reduced benefits for their surviving spouses and family members. The law had bipartisan support but was met with last-minute objections from some Republicans due to its projected cost of adding $195 billion to the federal deficit over a decade. Despite these concerns, the bill was passed with overwhelming support in both the Senate and House, and President Biden signed it into law just before the end of his presidency.
The new law will have retroactive benefits to December 2023, meaning that eligible recipients who previously only received partial benefits will now receive a full payment dating back a year. The Social Security Fairness Act repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have been reducing Social Security payments to retirees. Eliminating these provisions is expected to increase monthly benefits for affected recipients by an average of $360 by December 2025 and raise benefits for surviving spouses and family members as well.
The push to enhance Social Security payments for public pension recipients has been ongoing for decades, with the Senate first holding hearings on the issue in 2003. The passage of the Social Security Fairness Act represents a significant victory for these individuals who have seen their benefits reduced due to existing policies. President Biden emphasized the importance of providing economic security and dignity in retirement to those who have worked hard all their lives, highlighting the impact this legislation will have on middle-class households like the one he grew up in.
The bill’s passage just before the end of President Biden’s term reflects a culmination of efforts to address this issue and ensure that retired Americans are receiving the benefits they have earned. By expanding Social Security benefits for millions of individuals, including public sector workers, the new law will provide much-needed financial relief and security for retirees. President Biden’s signing of the bill into law underscores his commitment to supporting working Americans and upholding the value of social safety nets like Social Security.
