The SSFA Will Eventually Restore Full Social Security Benefits to Affected Retirees…We Hope
On January 5th of this year, Joe Biden signed into law the Social Security Fairness Act, supposedly aimed at enhancing retirement benefits for public sector employees. The Act specifically repeals two provisions — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — which had previously reduced benefits for individuals receiving pensions from non-Social Security-covered employment.
Background on WEP and GPO
The WEP and GPO were enacted in 1983, ostensibly to prevent individuals from receiving disproportionately high benefits. The WEP adjusted the Social Security benefit formula for those who also had pensions from non-covered employment, often leading to reduced benefits. The GPO affected spousal and survivor benefits, reducing them for individuals who received a government pension not covered by Social Security. These provisions impacted many public sector workers, including teachers, firefighters, police officers and federal employees under the Civil Service Retirement System.
Legislative Journey
The Social Security Fairness Act was introduced in the House of Representatives in January of 2023. After gaining substantial bipartisan support, it passed the House in November of 2024 and then the Senate in December. Biden signed the Act earlier this month.
Implications for Public Sector Retirees
The repeal of the WEP and GPO means that approximately 3.2 million public sector retirees will eventually receive full Social Security benefits without the previous reductions. This change is particularly significant for those who dedicated their careers to public service in roles not covered by Social Security. The law applies to benefits payable for months after December 2023, with adjustments as necessary.
Despite the potential positive impact, now it looks like beneficiaries may experience delays in receiving increased payments. The Social Security Administration now reports possible delays of over a year for the implementation of these benefit adjustments. We strongly encourage beneficiaries to keep their contact and direct deposit information up to date. The Senior Security Alliance will continue to monitor official communications and provide updates as we receive them.
Financial Considerations
While the Act rectifies long-standing benefit reductions, it may also raise concerns about the financial sustainability of the Social Security Trust Funds. The Congressional Budget Office estimates that the repeal of the WEP and GPO will cost approximately $196 billion over ten years. This could potentially accelerate the depletion of the trust funds by as much as six months. This underscores the need for future legislative action to ensure the long-term viability of Social Security.
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So there you have it. The Social Security Fairness Act is a potential landmark change in the treatment of public sector retirees. It could eventually ensure they receive the full Social Security benefits they have earned — but the wait continues. The Senior Citizens Lobby is committed to protecting Social Security for ALL retirees and will continue to keep our members informed of updates and changes as they happen.
By Steven Roberts
