A potential increase in social security benefits for millions of Americans is on the horizon, pending President Joe Biden's approval of the Social Security Fairness Act.
This legislation, which has garnered bipartisan support, has successfully navigated both houses of Congress.
As reported by Newsweek, the bill was presented to President Biden on Friday, following its approval by the Senate. The vote saw 76 Senators from both sides of the aisle in favor, while 20 Republicans opposed the bill. The National Fraternal Order of Police, a staunch supporter of the legislation, indicated via Facebook that Biden was expected to sign the bill on January 6, although official confirmation is yet to be received.
The Social Security Fairness Act, if enacted, would significantly enhance social security benefits for an estimated three million public sector workers, both at the federal and local level. This group includes a substantial number of police officers, firefighters, and teachers. Advocates of the bill argue that the current system, which diminishes benefits for employees who also receive pensions from jobs not covered by social security, unfairly affects public sector workers and their families.
The proposed legislation seeks to repeal two federal policies, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which currently limit access to benefits. The Congressional Budget Office explains that the WEP "reduces benefits for retired or disabled workers who have fewer than 30 years of significant earnings from employment covered by Social Security if they also receive pensions on the basis of noncovered employment." This implies that employees falling under this category would see their benefits reduced if they also receive pensions from other jobs not covered by social security.
The Government Pension Offset, according to the Congressional Budget Office, "reduces the spousal or surviving spousal benefits of people who receive pensions on the basis of noncovered employment." Americans become eligible for retirement benefits after contributing to Social Security for a minimum of 10 years. If their spouse also contributes to the program, they can receive spousal or survivor benefits.
Should Biden sign the bill, the new law would retroactively apply to all Social Security benefits paid after December 2023. Those affected would include employees covered by alternative pension systems who currently receive reduced or no benefits from Social Security due to the WEP or GPO.
Outgoing Senate Majority Leader Chuck Schumer, a Democrat, hailed the Senate's approval of the Social Security Fairness Act as a correction of a "50-year mistake." Ohio Senator Sherrod Brown, one of the bill's co-sponsors, stated, "Social Security is a bedrock of our middle class. You pay into it for 40 quarters, you earned it, it should be there when you retire. All these workers are asking for is for what they earned."
Shannon Benton, executive director of the Senior Citizens League, described the bill's passage through Congress as "a monumental victory for millions of public service workers who have been denied the full benefits they've rightfully earned."
President Biden has a narrow window to sign the legislation into law before the inauguration of his successor, President-elect Donald Trump, on January 20. The International Association of Fire Fighters, in a post on X, formerly Twitter, suggested that the White House had "announced" Biden would sign the legislation at 10 a.m. on January 6, although no public announcement to this effect has been found.
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