President Joe Biden on Sunday signed the Social Security Fairness Act, officially repealing two Social Security provisions impacting close to 3 million public sector workers.
Now law, the Social Security Fairness Act removes the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—two provisions that reduced benefits for millions of workers who receive a public pension, including teachers, nurses, and law enforcement officers.
The WEP, enacted in 1983, limited Social Security benefits for those who earn income from noncovered pensions, while the GPO, established in 1977, regulated spousal benefits for workers with noncovered pensions. Both rules had aimed to provide beneficiaries with a fair reimbursement for their contributions to the program.
“Social Security is the bedrock of financial security for retirees and survivors and for millions of Americans with disabilities,” said Biden while signing the bill in a televised White House event. “…The law that existed denied millions of Americans access to the full Social Security benefits they earned by thousands of dollars a year. That denial of benefits also applied to surviving spouses of public service employees.
“By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses and other public employees and their spouses and survivors,” Biden continued. “That means an estimated average of $360 per month increase.”
The bill was previously passed by a full Senate on Dec. 20 in a 76-20 vote, after passing the House of Representatives in a 327-75 vote on Nov. 12.
Supporters and opposers
Social Security advocacy groups were swift to praise Biden and legislators for passing the bill. “With the repeal of WEP and GPO, federal retirees, along with so many others, will finally receive the full Social Security benefits they’ve earned,” said William Shackelford, president of the National Active and Retired Federal Employees Association, in a statement.
“Our organization has spent decades lobbying for the repeal of the WEP and GPO,” added Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. “We endorsed the Social Security Fairness Act — and are gratified to finally see this legislation enacted and signed by the president.”
The Social Security Fairness Act was first introduced by Senators Sherrod Brown (D-OH) and Susan Collins (R-ME). Senator Collins, who attended the bill signing ceremony, reflected on the bill’s journey to legislation.
“In 2003, I held the first-ever Senate hearing on the WEP and the GPO, and I am pleased that with today’s signing of the Social Security Fairness Act, these unfair provisions in our Social Security system have finally been repealed,” said Senator Collins in a statement. “This is a victory for thousands of teachers, first responders, public servants, and the countless advocates who fought for years to correct this unfairness. For too long, the WEP and GPO have denied retirees and their spouses the Social Security benefits they earned through years of work and contributions to the system. This law ensures that public service will no longer come at the expense of one’s earned retirement benefits.”
However, not all advocacy groups are pleased with the passage. Shortly after the bill was approved by the Senate on Dec. 23, the Committee for a Responsible Federal Budget criticized lawmakers for adding an estimated $380 billion in debt by passing the Social Security Fairness Act and the American Relief Act, a plan that would provide emergency grants and lending to struggling small businesses.
Past projections by the Congressional Budget Office estimate that the Social Security Fairness Act would cost the U.S. $196 billion over the next 10 years. Social Security’s trust fund is already anticipated to be depleted by 2033.
“With interest rates and costs surging, debt projected to hit its new record in just two years, and Social Security hitting insolvency within a decade, one would think policymakers would choose to continue to reduce projected borrowing, said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, in a statement.
“Heading into the new year, new Congress, and new presidential administration, it’s time for a new year’s resolution of no new borrowing – ensuring that all policy priorities are fully paid for – along with a commitment to enact significant deficit reduction,” she continued.
In an update on Monday, the Social Security Administration (SSA) said it is “evaluating how to implement the Act,” and “will provide more information as soon as available.” At this time, beneficiaries do not need to take any action, except to verify their current mailing address and direct deposit information if it has recently changed, which can be done online via their “My Social Security account,” the agency said.
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