President Biden recently signed the Social Security Fairness Act into law, marking the first expansion of Social Security benefits in two decades. This legislation directly benefits current and former public employees, including teachers, firefighters, and police officers, addressing a long-standing disparity in benefit calculations. The President framed the act as a fulfillment of the Social Security system’s original purpose: ensuring economic security and dignity for hardworking Americans.
The Act specifically repeals two provisions – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) – that reduced Social Security benefits for recipients also receiving retirement payments from other public sources. The Congressional Budget Office (CBO) estimates that eliminating the WEP will increase monthly payments by an average of $360 for 2.1 million beneficiaries by December 2025, while eliminating the GPO will increase monthly benefits by an average of $700 for 380,000 recipients of spousal benefits and $1,190 for 390,000 surviving spouses. These increases will further adjust annually with cost-of-living increases. Backdated payments from January 2024 will be issued, although the exact implementation details remain unclear.
The passage of the Act has been met with strong support from unions representing public sector workers. Edward Kelly, president of the International Association of Fire Fighters, hailed the change as correcting a “40-year wrong,” particularly beneficial for surviving spouses. Similarly, Lee Saunders of the American Federation of State, County and Municipal Employees celebrated the access to benefits for over two million public service workers. The National Education Association also lauded the law as a historic victory for educators and other public servants.
While some Republicans, including Senator Susan Collins, supported the bill, others voiced concerns about its long-term fiscal impact. Senator Thom Tillis criticized the lack of sustainable funding mechanisms. Despite this opposition, supporters argued the Act addressed a longstanding inequity in the system.
The Social Security Fairness Act’s impact extends beyond individual beneficiaries. The increased administrative burden will fall upon the Social Security Administration, which is already operating with its lowest staffing levels in decades. This added strain comes as the agency faces a looming insolvency crisis, projected to begin in 2035. The CBO estimates the new law will accelerate this insolvency by approximately six months. The future of Social Security remains a critical political issue, significantly impacting the approximately 72.5 million Americans who currently rely on the system.