Biden Raises Social Security Payments for Public Employees

On January 5, 2025 President Biden signed the Social Security Fairness Act. The legislation aims to address perceived inequities in the U.S. Social Security system, primarily in response to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both provisions reduce Social Security benefits for people who have worked in jobs where they did not pay into Social Security (i.e. public employees) but are also eligible for Social Security benefits based on other work.

Key Impacts of the Social Security Fairness Act:

• • WEP Repeal: The Act repeals the Windfall Elimination Provision (WEP), which reduces Social Security benefits for individuals who have a pension from a job not covered by Social Security (e.g., state or local government jobs). This repeal ensures that people who have worked both in Social Security-covered jobs and non-Social Security-covered jobs receive fairer benefit amounts, without WEP’s reductions.

• • GPO Repeal: The Act also repeals the Government Pension Offset (GPO), which reduces Social Security spousal or survivor benefits for individuals who receive a government pension based on work that was not covered by Social Security. Repealing the GPO allows these individuals to receive full spousal or survivor benefits, even if they have a pension from a non-Social Security-covered job.

• • Benefit Fairness: The overall goal of the Act is to create a more equitable Social Security system, where workers are not penalized for having worked in jobs with different pension structures or for not contributing to Social Security.

• • Impact on Affected Workers: The Act benefits retirees, spouses, and survivors who are impacted by WEP and GPO, particularly public sector employees, teachers, and government workers. It will result in higher Social Security benefits for many who are currently penalized.

Overall, the enactment of the Social Security Fairness Act will eliminate the penalties imposed by WEP and GPO. It ensures that individuals receive Social Security benefits in line with their work history and contributions, regardless of their public-sector pensions.