WASHINGTON (AP) — President Joe Biden is set to sign a new law on Sunday that will increase Social Security payments for current and former public employees, impacting nearly 3 million individuals who receive pensions from their time working as teachers, firefighters, police officers, and in other public service roles. Advocates argue that the Social Security Fairness Act corrects a long-standing inequality, but it will also strain the Social Security Trust Funds, which are facing a potential solvency crisis.
The legislation repeals two provisions — the Windfall Elimination Provision and the Government Pension Offset — that restrict Social Security benefits for recipients who receive retirement payments from other sources, such as public retirement programs from a state or local government. According to the Congressional Research Service, as of December 2023, around 745,679 individuals, representing about 1% of all Social Security beneficiaries, had their benefits reduced by the Government Pension Offset, while approximately 2.1 million people, or about 3% of all beneficiaries, were impacted by the Windfall Elimination Provision.
The Congressional Budget Office estimated in September that eliminating the Windfall Elimination Provision would increase monthly payments for affected beneficiaries by an average of $360 by December 2025. Meanwhile, ending the Government Pension Offset would raise monthly benefits in December 2025 by an average of $700 for 380,000 recipients receiving benefits based on living spouses, and by an average of $1,190 for 390,000 surviving spouses receiving a widow or widower benefit. These amounts would be subject to regular cost-of-living adjustments by Social Security.
The adjustments to payments will take effect from January 2024 onwards, necessitating backdated payments from the Social Security Administration. The law passed by Congress mandates the Social Security commissioner to make the necessary adjustments to primary insurance amounts based on the changes in the legislation, but the specifics of how this will be executed or whether affected individuals need to take any action remain unclear.
Edward Kelly, president of the International Association of Fire Fighters, expressed enthusiasm about the change, stating that firefighters nationwide are pleased to see this correction after 40 years. Kelly emphasized the significant impact on surviving spouses of firefighters who had paid into Social Security but were negatively affected by the government pension system. The IAFF, with around 320,000 members and numerous retirees set to benefit, celebrated the development.
Sherrod Brown, the Ohio senator who had long advocated for the proposal, was unsuccessful in his reelection bid in November. Lee Saunders, president of the American Federation of State, County, and Municipal Employees union, credited Brown for his support, acknowledging that over two million public service workers would now have access to the Social Security benefits they had contributed to throughout their careers. National Education Association President Becky Pringle hailed the law as a landmark achievement that would enhance the lives of educators, first responders, postal workers, and others dedicated to public service in their communities.
Despite bipartisan support, including from Republicans like Maine Sen. Susan Collins,
Some senators, such as Sens. John Thune of South Dakota, Rand Paul of Kentucky, and Thom Tillis of North Carolina, voted against the legislation, expressing concerns about the decision-making process. “We caved to the pressure of the moment instead of doing this on a sustainable basis,” Tillis shared with The Associated Press last month.
However, proponents of the bill within the Republican party argued that the legislation presented a unique opportunity to address what they viewed as an unjust portion of federal law that negatively impacts retired public servants.
The future of Social Security has emerged as a prominent political issue, featuring prominently in the debates surrounding the 2024 election. Over 72.5 million individuals, including retirees, disabled persons, and children, currently rely on Social Security benefits for financial support.
The implementation of the new law’s policy changes is expected to place additional administrative burdens on the Social Security Administration, which is already operating with its smallest workforce in many years. Despite serving a larger population than ever, the agency, which is presently subject to a hiring freeze, maintains a staff of approximately 56,645 individuals — marking the lowest staffing levels in over five decades.
According to the annual Social Security and Medicare trustees report released in May, the program’s trust fund is forecasted to be unable to meet full benefit obligations starting in 2035. The enactment of the new law is projected to advance the program’s insolvency timeline by roughly six months.
___Contributions to this report were made by Associated Press writer Stephen Groves.
