Biden Signs Social Security Fairness Act: When Do Higher Payments Start?

Millions of Americans will now see their Social Security benefits increase after President Joe Biden signed the Social Security Fairness Act into law on Sunday.

The bill, which abolishes the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), passed both chambers of Congress with bipartisan support.

Newsweek has emailed the Biden administration for additional comment on Sunday evening.

What is the Social Security Fairness Act?

The Social Security Fairness Act is the biggest change to the Social Security Act in decades.

The measure will give full benefits to millions of public sector retirees who received them at reduced levels due to the WEP and GPO. These workers and their allies have long been calling for changes to these provisions, which they deemed unfair.

Biden said on Sunday that the measure will mean Social Security benefits will increase by an average of $360 a month for more than 2.8 million recipients.

While the Fairness Act sailed through Congress and the Senate over the course of several weeks between November and December, critics have warned about further pressure on the Social Security program and the problem of how to keep it running when it's facing an impending insolvency crisis.

The Congressional Budget Office has estimated that the new measure will cost nearly $196 billion over a decade—a significant sum, especially considering that, at the moment, the Social Security fund could run out of money in 2038 if no action is taken by lawmakers before then.

When to Expect Higher Social Security Payments

In September, the Congressional Budget Office (CBO) estimated that eliminating the WEP would increase monthly payments for affected beneficiaries by an average of $360 by December 2025.

Ending the GPO would raise monthly benefits by December 2025 by an average of $700 for 380,000 recipients with benefits based on living spouses, according to the CBO. For 390,000 surviving spouses receiving widow or widower benefits, the increase would average $1,190.

Will the Social Security Fairness Act be retroactive?

The law has now come into effect, and payments linked to the Social Security Fairness Act will be made retroactive to January 2024.

These amounts would continue to rise over time due to Social Security's regular cost-of-living adjustments (COLA). The law has now come into effect, and payments linked to the Social Security Fairness Act will be made retroactive to January 2024.

The measure passed by Congress states that the Social Security commissioner "shall adjust primary insurance amounts to the extent necessary to take into account" changes in the law.

It remains unclear how this adjustment will be implemented or whether affected individuals will need to take any action.

Who Will Receive Higher Social Security Payments?

For decades, Americans have seen lower Social Security checks if they fall into the circumstances under the WEP and GPO.

Nearly 3 million public sector workers, including police officers, firefighters and teachers, had their benefits slashed because they collected pensions that weren't covered by Social Security.

The International Association of Fire Fighters (IAFF) has roughly 320,000 members, which does not include hundreds of thousands of retirees who will now benefit from the Social Security change.

According to CNN, the Social Security Fairness Act will impact most permanent civilian federal employees hired before January 1, 1984, along with about 28 percent of state and local government employees covered by alternative staff retirement systems.

While the WEP reduces benefits for retired or disabled pension workers who have fewer than 30 years of significant earnings from employment covered by Social Security, the GPO targets the spouses of pension workers.

The Congressional Research Service (CRS) estimated that in December 2023, approximately 745,679 individuals, or about 1 percent of all Social Security beneficiaries, had their benefits reduced by the GPO. Additionally, about 2.1 million people, or roughly 3 percent of all beneficiaries, were affected by the WEP.

What People Are Saying

President Biden during Sunday's signing ceremony at the White House: "Americans who have worked hard all their life to make an honest living should be able to retire with economic security and dignity."

Edward Kelly, president of the International Association of Fire Fighters, to The Associated Press: Kelly said firefighters across the country are "excited to see the change—we've righted a 40-year wrong." Kelly said the policy was "far more egregious for surviving spouses of firefighters who paid their own quotas into Social Security but were victimized by the government pension system. Now firefighters who get paid very little can now afford to actually retire."

Lee Saunders, president of the American Federation of State, County and Municipal Employees labor union, to AP: "Over two million public service workers will finally be able to access the Social Security benefits they spent their careers paying into. Many will finally be able to enjoy retirement after a lifetime of service."

Former Senator Sherrod Brown, an Ohio Democrat and one of the bills cosponsors, said: "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."

National Committee to Preserve Social Security and Medicare spokesperson Walter Gottlieb said in an email to Newsweek: "President Biden's signing of the Social Security Fairness Act today truly is historic.  The new law rights a wrong that for the last 50 years has either reduced or eliminated the Social Security benefits of certain government retirees. This is the bipartisan solution that most Americans want, even though some on Capitol Hill have proposed to slash benefits by raising the retirement age, means testing, cutting COLAs, or privatizing Social Security."

Brian R. Marvel, president of Peace Officers Research Association of California (PORAC), said in an email to Newsweek: "For more than 40 years, PORAC has championed the fight to repeal WEP and GPO, which have unfairly penalized public servants by depriving them of their earned Social Security benefits. Standing in the White House today, witnessing the President sign the Social Security Fairness Act into law, was an incredibly proud and humbling moment."

Senator Thom Tillis, a North Carolina Republican who voted against the legislation, told the AP last month: "We caved to the pressure of the moment instead of doing this on a sustainable basis."

What Happens Next

Advocates argue that the Social Security Fairness Act addresses a long-standing disparity, though it will also place additional strain on the Social Security Trust Funds, which are confronting an impending insolvency crisis.

The Social Security Administration (SSA) is facing insolvency as early as the mid-2030s. At that point, there will only be enough money to pay out roughly 80 percent of what recipients are owed from their time in the workforce.

The SSA is expected to publish more details on how it plans to implement the law soon. You can keep an eye out for any update here.

Reporting by The Associated Press contributed to this story.

Update: 1/6/25, 10:26 a.m. ET: This article has been updated with more information.