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Right before the holiday break, Congress passed a measure that has been decades in the making. The Social Security Fairness Act, which will boost Social Security retirement payments to nearly 3 million public sector retirees who draw public pensions, will be signed into law by President Joe Biden on Jan. 6, according to public employee associations.
The new bill will boost Social Security retirement payments for former police officers, firefighters and teachers, which critics warned will further weaken the program's finances. The bill will cost more than $195 billion over 10 years.
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President Biden is scheduled to sign the bill into law on Monday, January 6, 2025, according to the National Fraternal Order of Police, which has been a strong proponent of the bill.
“This landmark legislation represents a significant victory for public safety officers and government employees, as it repeals the unfair Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) in the Social Security Code, ” according to the National Fraternal Order of Police.
The Texas Retired Teachers Association (TRTA) also announced that it is “pleased” that Pres. Biden will sign The Social Security Fairness Act “into law on Monday, January 6, 2025 … We are one step closer to having our dedicated retired school personnel and other public servants receive their hard-earned Social Security benefits!”
The Social Security Fairness Act will repeal two decades-old provisions that limited benefits for people who also receive a pension. Currently, public service employees are unable to receive their full Social Security benefits if they also receive other forms of retirement benefits, such as a pension.
The bill, which passed the House in November, will eliminate the Windfall Elimination Provision, enacted in 1983, which reduces the Social Security benefits of workers who receive government pensions not covered by Social Security. It will also repeal the Government Pension Offset, enacted in 1977, which reduces benefits for spouses, widows and widowers whose spouses receive public sector pensions.
The passage of this important legislation not only provides relief to thousands of my constituents [in Ohio] who are frustrated they can’t receive their full Social Security benefits – it demonstrates what Congress is capable of when we work together in bipartisan fashion,” said Rep. Emilia Sykes. “There’s no good reason why teachers, firefighters, and other public service employees who have earned their retirement benefits should not receive them.”
“The Social Security Fairness Act is widely supported across both parties, as it would eliminate the Windfall Elimination Provision and the Government Pension Offset,” said Romi Savova, founder and CEO of fintech retirement firm PensionBee. “These provisions effectively reduced the level of Social Security certain workers, including those who receive other generous pension payments, are entitled to.
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“Proponents of the bill argue that these reductions are unfair, as the affected individuals contributed to Social Security funding during their working years. Opponents of the bill argue that affected individuals are already receiving abundant retirement funds. Ultimately those who were previously affected by the Windfall Elimination Provision or the Government Pension Offset, will receive higher retirement benefits through Social Security.”
After Congress passed the Social Security Fairness Act, the Social Security Administration released a statement: “At this time, the Social Security Administration is evaluating how to implement it if it is signed into law. We will provide more information on our website, ssa.gov as soon as it is available,” the SSA advised.
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
