Biden signs Social Security Fairness Act

President Joe Biden signed the Social Security Fairness Act into law on January 5, 2025. The act eliminates two provisions reducing Social Security payments for nearly 3 million public sector workers such as teachers, police officers, nurses, firefighters, postal carriers, and other state and local government employees. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) were responsible for these reductions. With both provisions now repealed, millions of Americans will have more net income. The legislation, enacted on January 5th, 2025, applies retroactively to the beginning of 2024. According to the analysis, repealing the WEP and the GPO may result in an average monthly increase of about $360 in Social Security benefits for affected individuals. For some, the WEP repeal may lead to an extra $300-$500 per month, whereas, without the GPO, others could see an additional $1,000 or more monthly. President Everett Kelley reflected on the importance of the bill’s passage: “What do I think about when I witness the Social Security Fairness Act being signed by the president? “I think of my very first Legislative Conference in Washington, D.C., where we were lobbying Congress to repeal these provisions. I think of the nearly 3 million public workers who will finally get the full Social Security benefits that they have worked all their life for. Thank you, President Biden.”

Biden signs landmark Social Security legislation

However, Social Security experts largely disapprove of the changes, arguing that they worsen the program’s insolvency issues while solutions remain elusive. “Literally, you cannot find a Social Security expert who thought the Social Security Fairness Act was a good idea,” said Andrew Biggs, senior fellow at the American Enterprise Institute. According to the Congressional Budget Office (CBO), the change will cost almost $200 billion over 10 years, exacerbating the strain on Social Security’s already dwindling trust funds. Trust funds are expected to last until 2035, after which only 83% of benefits will be payable. Both proponents and critics of the Social Security Fairness Act agree that Congress needs to address the program’s funding shortfall sooner rather than later. Lawmakers face a pressing dilemma regarding Social Security’s solvency, underscoring the need for comprehensive reform.