Biden signs Social Security Fairness Act

President Joe Biden recently signed the Social Security Fairness Act into law. This new legislation will have a big impact on retired teachers and other public sector workers. The law repeals two rules that have been in place for decades: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules reduced Social Security benefits for many public employees who earned pensions from jobs where Social Security taxes were not taken out of their paychecks. Nearly 3 million retired public sector workers such as teachers, police officers, firefighters, and government employees will benefit from this change. On average, they can expect to see their monthly Social Security payments go up by about $360. The increase could range from $300 to $500 per month for some retirees. Here’s an example of how it will work: A 75-year-old retired teacher in Georgia gets a monthly pension of $3,300. She also worked enough other jobs over the years to qualify for Social Security. But under the old WEP rule, her monthly Social Security check was cut down to just $380. Now that the WEP has been repealed, her Social Security payment is estimated to go up to $900 per month. That’s an increase of $520 each month. She will also get back payments of around $6,240 to make up for the reduced benefits she received in 2024.

Social Security boost for retirees

The GPO rule was even harsher for some retirees. It reduced spousal and survivor benefits by two-thirds of their public pension amount. This left many with little to no spousal benefits at all. Consider a 70-year-old retired teacher who gets a $3,300 monthly pension. Based on her husband’s work record, she should qualify for a $1,200 per month spousal benefit. But the GPO completely eliminated that spousal payment. With the GPO gone, she will now get the full $1,200 spousal benefit she’s entitled to. Plus, she’ll receive about $14,400 in back payments for 2024. The Social Security Fairness Act rights a wrong that has shortchanged public servants for over 40 years. It restores retirement security for millions who have dedicated their careers to serving their communities. This historic legislation makes pursuing a public service career more appealing by removing unfair penalties. Retirees impacted by the new law should keep an eye on their Social Security statements in the coming months. Adjustments will be made automatically back to January 2024. Having multiple sources of retirement income is key, and this Social Security boost will brighten the financial future for many of the nation’s teachers, first responders, and government workers.