Social Security Fairness Act Set to Provide Relief for Retired Public Sector Workers in the US

Social Security Fairness Act: The Social Security Fairness Act of 2024, signed earlier this month, brings relief to nearly 3 million retired public service workers in the US. For years, workers like teachers, firefighters, and police officers were hurt by rules called the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

These rules reduced or even eliminated their Social Security benefits. The new law aims to change this, offering a much-needed boost to those affected.

When the bill was signed, President Joe Biden praised the law as an important step for Americans. He stated, “This law restores fairness to our Social Security system, providing much-needed economic relief to millions of retirees,” according to CBS News.

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Social Security Fairness Act: How WEP and GPO Affected Retirees

The WEP, introduced in 1983, reduced benefits for people who had worked in both private-sector jobs, where Social Security benefits were paid, and public-sector jobs, where they were not. The GPO, on the other hand, took away spousal or survivor benefits for people getting government pensions. These rules caused financial hardship for many retirees, especially those who moved from private-sector jobs to public-sector ones.

Kathryn McCall, a financial adviser, said that the new law would help those workers. “Those who worked part of their careers in the private sector and later took up public sector jobs will now receive fair compensation without pension penalties,” McCall explained, as reported by KCRA.

Impact of the New Law

According to the Congressional Budget Office (CBO), by December 2025, 2.1 million retirees will see their monthly benefits rise by an average of $360.

• The law will also give 380,000 spouses an average increase of $700,
• 390,000 surviving spouses will receive an average of $1,190 more each month.

These beneficiaries will also get lump-sum payments to cover any shortfalls from January 2024, as reported by CNBC.

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Financial Concerns and Implementation

While the new law brings positive changes, there are concerns about its cost. Critics warn that repealing the WEP and GPO could add $200 billion to the federal deficit over the next decade and could speed up the insolvency of Social Security by six months. Despite these worries, many see the law as a win for fairness in retirement.

The Social Security Administration is now reviewing how to make these changes. Beneficiaries can expect the increased payments to start by late 2025. There is no need for anyone to take immediate action, but they should ensure their contact and payment details are updated with the SSA.

The fight to change these rules has been going on for decades. In recent years, there has been more support, and this bipartisan effort finally paid off. Edward Kelly, president of the International Association of Fire Fighters, called it a victory for public service workers. \ “Retired firefighters and emergency workers will now receive the full Social Security benefits they earned,” Kelly said, according to CBS News.

Financial planner Barbara O’Neill, who has personally been affected by the WEP, also welcomed the change. “The change simplifies retirement planning and provides financial stability to countless retirees,” O’Neill said, according to CNBC.