<p>Around three million retired public workers will receive increased Social Security benefits after President Joe Biden signed the Social Security Fairness Act on Sunday.</p>
<p>The bill paves the way for retired police officers, firefighters, teachers, nurses, and others who collect pension income to receive increases in their Social Security payments, CNBC <a href="https://www.cnbc.com/2025/01/05/biden-signs-social-security-bill-to-increase-benefits-for-millions-of-public-workers.html" target="_blank" rel="noopener">reported</a>. The Social Security Fairness Act repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which — for more than 40 years — reduced Social Security benefits for public sector workers and their spouses who receive a pension or disability benefits from a job where Social Security payroll taxes were not withheld.</p>
<p>“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 said. “That means an estimated average of $360 per month increase.”</p>
<p>The president added that around 2.5 million Americans will receive a lump-sum payment to make up for a shortfall in benefits they should have received last year. The Social Security Administration (SSA) said in a <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html" target="_blank" rel="noopener">statement</a> on Monday that it is &#8220;evaluating how to implement&#8221; the bill signed by Biden and &#8220;will provide more information as soon as available.&#8221;</p>
<p>The bill will add $196 billion to the federal deficit, according to the Congressional Budget Office, Fox Business <a href="https://www.foxbusiness.com/politics/millions-get-higher-social-security-payments-under-new-law" target="_blank" rel="noopener">reported</a>. Critics of the bill, which was passed by Congress with bipartisan support, argue that it will only cause more issues for Social Security in the future. Sen. Chuck Grassley (R-IA) <a href="https://www.usatoday.com/story/money/2025/01/06/benefits-social-security-fairness-act/77483465007/" target="_blank" rel="noopener">said</a> that the Social Security Fairness Act unfairly benefits some workers while creating more of a burden that others will have to pick up.</p>
<p>&#8220;Let’s be crystal clear: this bill would increase unfairness in how Social Security benefits are calculated,&#8221; Grassley said on the Senate floor last month.</p>
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<p>The WEP reduced Social Security benefits for workers with a public pension if they also held a job in the private sector. The WEP was crafted to prevent public sector workers from &#8220;double-dipping&#8221; from a government pension and Social Security, according to Fox Business. The GPO, meanwhile, reduced Social Security benefits for spouses, widows, and widowers who have their own government pensions.</p>
<p>Those who called for the repeal of the WEP and GPO argue that public sector employees who had their Social Security benefits reduced were not receiving &#8220;the full Social Security benefits they’ve earned.&#8221;</p>
<p>Biden acknowledged that the Social Security system needs more work and argued that the &#8220;wealthiest Americans [must] begin to pay their fair share so it&#8217;s able to be maintained and so much more.&#8221;</p>
<p>More changes to Social Security could be coming shortly as Congress&#8217; timeline to implement major Social Security reform continues to shrink. According to the SSA, the program&#8217;s trust fund reserves will be depleted by 2035, meaning if Congress doesn&#8217;t act, retirees will only <a href="https://www.cnbc.com/select/will-social-security-run-out-heres-what-you-need-to-know/#:~:text=The%20financial%20future%20of%20the,the%20Social%20Security%20payroll%20tax." target="_blank" rel="noopener">receive</a> 83% of their full benefits after 2035.</p>

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Biden Signs Bill Giving Millions Of People Higher Social Security Payments. Here’s Who Gets Them.

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Biden Signs Bill Giving Millions Of People Higher Social Security Payments. Here’s Who Gets Them.