With President Joe Biden signing a bill over the weekend to improve Social Security benefits for millions of public sector workers, many Americans may be wondering if they qualify for what the White House is calling the first expansion of such assistance in 20 years.
On Sunday, Biden signed the Social Security Fairness Act which eliminates two decades-old provisions − the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) − that reduced Social Security benefits for a portion of retirees who received pension income.
“The bill I’m signing today is about a simple proposition: Americans who have worked hard all their lives to earn an honest living should be able to retire with economic security and dignity,” Biden said on Sunday.
Biden estimated the bill should lead to an average monthly increase of $360 for certain public employees and their spouses and survivors. The outgoing president said more than 2.5 million Americans will receive a lump sum payment worth “thousands of dollars” to compensate for the benefits they should have received last year.
The bill, passed by the House of Representatives in November and approved in the Senate by a 70-26 vote last month, will cost $196 billion over the next 10 years, the Congressional Budget Office estimates.
The move comes as Social Security recipients are receiving a 2.5% cost-of-living adjustment (COLA) in 2025.
Here is what to know about the bill and who will be eligible for the boosted benefits.
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Who will qualify for the improved Social Security benefits?
Police officers, firefighters, nurses, postal workers, public school teachers and government employees are among the nearly 3 million public sector workers affected by the provisions.
Public sector employees include anyone who works for the government, a government-funded organization or a school, according to the U.S. Department of Labor and the University of Pittsburgh’s Graduate School of Public & International Affairs.
The bill is “a great gift for our retired firefighters, police officers, postal workers, teachers, and others who for years contributed to Social Security, but are now being penalized because of their time of public service,” Senate Majority Leader Chuck Schumer, D-N.Y. said last month. “That’s unfair. It’s deeply unfair. It goes against the American ideal of working hard, chipping in, and enjoying a well-earned retirement.”
Before Biden signed the bill, the WEP reduced Social Security for those who earned “non-covered” pension income (which includes pensions from state and local governments, as well as non-U.S. employers) from their jobs, while the GPO reduced spousal or survivor benefits when an individual’s pension is non-covered.
Why are some against the Social Security Fairness Act?
Opponents of the bill, including Sen. Chuck Grassley, argue that it would unfairly benefit certain workers while increasing hardships for others on Social Security.
“Let’s be crystal clear: this bill would increase unfairness in how Social Security benefits are calculated,” Grassley, R-Iowa, said in a speech on the Senate floor last month.
The bill could also jeopardize the Social Security fund overall, critics say. Sen. Thom Tillis, R-N.C., said the Social Security trust fund is less than 10 years away from being insolvent, and that the bill will speed this up.
Sen. Chuck Grassley (R-Iowa) during the Senate Committee on the Judiciary hearing on gun violence on Nov 28, 2023; Washington, DC, USA.
What is next for the Social Security Fairness Act? When could increased benefits come?
The Social Security Administration (SSA) said it is “evaluating how to implement the Act” and “will provide more information as soon as available.”
For those who have previously filed for Social Security benefits and they are partially or completely offset, the SAA says, “You do not need to take any action except to verify that we have your current mailing address and direct deposit information if it has recently changed.”
For those who have not previously filed for Social Security benefits and are interested in doing so, the SAA says they can file online or schedule an appointment.
Contributing: Riley Beggin & Medora Lee, USA TODAY
This article originally appeared on USA TODAY: Biden signs Social Security Fairness Act: Who gets increased benefits?
