On Sunday, President Joe Biden signed the Social Security Fairness Act (H.R. 82) into law, repealing two controversial tax provisions that reduced Social Security benefits for certain federal workers and public servants.
The repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) will effectively increase benefits for over 2 million retirees and 750,000 spouses and survivors.
Impact of the Repeal
The WEP previously reduced Social Security benefits for retired federal workers who also spent part of their careers in the private sector. Similarly, the GPO reduced spousal and survivor benefits for families with retired government employees.
With the new law:
- Retired public servants impacted by the WEP will see an average monthly increase of $360 to their Social Security benefits.
- Affected individuals will also receive lump sum payments for missed benefits accrued throughout 2024.
Bipartisan Support in Congress
The Senate passed the bill with a 76-20 vote, following its earlier passage in the House in November. The bipartisan legislation was championed by Reps. Abigail Spanberger (D-Va.) and Garret Graves (R-La.).
“The bill I’m signing today is about a simple proposition: Americans who have worked hard all their lives to earn an honest living should be able to retire with economic security and dignity,” Biden said during the signing ceremony.
Advocacy Efforts and Reactions
Bill Shackelford, president of the National Active and Retired Federal Employees Association (NARFE), celebrated the bill’s passage.
“This milestone represents the culmination of years of tireless advocacy by NARFE and its members,” Shackelford said.
The Social Security Administration (SSA) acknowledged the bill’s enactment in a Monday statement and announced that it is evaluating the implementation process.
Significance of the Law
President Biden emphasized the importance of the legislation in restoring fairness and dignity to retirees:
“Social Security is the bedrock of financial security for retirees, survivors, and for millions of Americans with disabilities,” Biden said. “This law ensures that public servants receive the benefits they worked hard to earn.”
The repeal is expected to bring economic relief to millions of Americans, solidifying Social Security’s role as a foundation for retirement security.