One of the final policy moves under former President Joe Biden’s administration could lead to higher Social Security payments for millions of Americans. The recently signed Social Security Fairness Act eliminates certain provisions that previously reduced benefits for public retirees.
What the Social Security Fairness Act Changes
Signed into law on January 5, the legislation removes two long-standing policies: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions lowered Social Security payouts for those receiving public pensions from jobs that did not pay into the system.
The WEP reduced Social Security benefits for people who worked in jobs where no Social Security taxes were collected, while the GPO cut or eliminated spousal and survivor benefits for those receiving public pensions.
According to the Social Security Administration (SSA), 3.2 million individuals were previously affected by these policies. Now, retirees who qualify could see their monthly Social Security payments grow by up to $1,190, based on projections from the Congressional Budget Office.
Who Will See Increased Benefits?
The law primarily benefits public employees like teachers, firefighters, and law enforcement personnel. However, not all government employees will see larger payments—only those who receive pensions from work that was exempt from Social Security taxes may qualify for the adjustment.
For example, teachers in Massachusetts contribute to the state’s Teachers’ Retirement System instead of Social Security. While their pension was once subject to reductions under WEP and GPO, they will now receive the full benefits they have earned.
Additionally, retirees who qualify for spousal or survivor benefits through Social Security can now claim up to 50% of their spouse’s benefit, or 100% in the case of widowhood, regardless of their own pension status.
When Will Higher Payments Arrive?
Retirees who were already receiving Social Security before January 2024 should automatically see their benefits increase, along with a retroactive lump sum for missed payments starting that month.
The SSA announced that recalculated payments would begin immediately, with most beneficiaries receiving their one-time retroactive payment by the end of March. Monthly benefit adjustments will start appearing in April.
Those who became eligible for Social Security after January 5 or had previously delayed applying due to the WEP and GPO rules will also be eligible for the new calculations when they apply.
For more details on how the Social Security Fairness Act impacts benefits, visit the official SSA website.
