President Biden took action on Sunday by signing into law a bill that will bring about significant improvements to Social Security benefits for retired individuals across the nation. This legislation is especially beneficial for retired firefighters, police officers, and teachers.
“Hardworking Americans who have dedicated their lives to earning an honest living deserve the ability to retire with financial stability and respect,” expressed Mr. Biden during a gathering at the White House. He emphasized the importance of this sentiment as he signed the Social Security Fairness Act. This act aims to provide a monthly increase of approximately $360 to over 2.5 million recipients of Social Security benefits.”
“It’s a significant matter for middle-class households, including the one I was raised in and many of you were as well,” stated the president.
Beneficiaries will also receive a lump sum in the thousands of dollars to compensate for the shortfall in benefits they were supposed to receive in 2024, according to the president.
The Social Security Fairness Act removes two federal policies that previously prevented employees with a public pension from receiving their full benefits through the federal retirement program. Additionally, it also reduces the reduction of benefits for surviving spouses and family members of these workers.
According to a statement from a White House spokesperson, President Biden is being hailed as the first president in over two decades to enhance Social Security benefits. The bill he is currently signing is set to broaden these benefits by several hundred dollars per month for over 2.5 million Americans.
Eliseo Jimenez, a 17-year-old high school senior from Lubbock, Texas, made an extraordinary journey to Washington, D.C. over the summer. He walked for 40 days to raise funds for his charity, which supports individuals with disabilities and senior citizens. Eliseo was inspired to take on this challenge after witnessing the difficulties his grandmother and her elderly neighbors faced while trying to make ends meet with their limited monthly benefits. His dedication and commitment to helping others are truly remarkable.
Mr. Biden signed the new law just weeks before the end of his presidency. The measure, known as H.R. 82, was passed by the Senate on December 21 with a vote of 76-20 during the final hours of the 118th Congress. House lawmakers had already approved the bill in November.
The movement to improve Social Security benefits for public pension recipients has been a long-standing effort, with the Senate conducting its initial hearings on the matter back in 2003.
The Social Security Fairness Act garnered support from both Republicans and Democrats. However, some Republicans raised concerns about the cost of the law, leading to last-minute objections. The Congressional Budget Office estimates that the legislation could contribute approximately $195 billion to the federal deficit over a ten-year period.
Eligible recipients who previously received partial benefits will now receive a full payment retroactive to December 2023. This means that they will be compensated for the entire year that has passed.
The new Social Security law has repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) policies. These policies were causing a reduction in Social Security payments for 2.5 million retirees.
In a statement on Sunday, General President Edward Kelly of the International Association of Fire Fighters expressed his disappointment with Congress, stating that they had “broken a promise” by enacting the Windfall Elimination Provision and the Government Pension Offset.
“Today, we have restored that promise, ensuring that retired firefighters and emergency medical workers will finally receive the full Social Security benefits they have worked hard for and contributed to,” stated Kelly.
How much more in benefits?
According to the Associated Press, the elimination of the WEP, as estimated by the Congressional Budget Office in September, would result in a monthly payment increase of $360 for Social Security recipients affected by it by December 2025.
According to the agency’s findings, eliminating the GPO (Government Pension Offset) would result in a significant boost to the monthly benefits received by recipients. Specifically, starting from December 2025, around 380,000 individuals who receive benefits based on living spouses would see an average increase of $700. Additionally, approximately 390,000 surviving spouses receiving widow or widower benefits would experience an average increase of $1,190.
“After signing the bill into law, Mr. Biden expressed that the existing law had deprived millions of Americans of their rightful access to the complete Social Security benefits they had earned.”
Martha Shedden, president of the National Association of Registered Social Security Analysts, has pointed out that while the new law fails to tackle the significant financial consequences on the trust funds, it also overlooks the complex implementation procedures that the Social Security Administration will have to undertake.
The Social Security Administration announced on Monday that it is currently assessing how to put the act into effect. To receive the increased payments, beneficiaries simply need to ensure that the agency has their up-to-date mailing address and direct deposit information. Fortunately, most individuals can easily accomplish this by accessing their “my Social Security account” online, eliminating the need to call or visit the SSA.
