The official Social Security and Medicare trustees report

Biden Signs Social Security Fairness Act, Repealing WEP and GPO to Boost Benefits for Public Sector Retirees

Jan 5, 2025, 08:01 PM

President Joe Biden has signed the Social Security Fairness Act into law, a move that will enhance Social Security benefits for nearly 3 million U.S. retirees. The legislation, which had bipartisan support, eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced benefits for public sector workers such as teachers, firefighters, and police officers who receive pensions from jobs not covered by Social Security. The repeal of WEP and GPO is expected to increase monthly payments significantly, with estimates suggesting an average increase of $360 by December 2025 for those affected by WEP, and increases of $700 and $1,190 for living and surviving spouses affected by GPO, respectively. The changes apply to payments from January 2024 onward, and the Social Security Administration will owe back-dated payments. However, the new law is also expected to strain Social Security Trust Funds, potentially hastening the program's insolvency date by about half a year. About 72.5 million people, including retirees, disabled individuals, and children, currently receive Social Security benefits. The Congressional Research Service estimated that in December 2023, about 2.1 million people were affected by WEP and 745,679 by GPO. The Social Security Administration, with a staff of about 56,645, faces increased administrative work due to these policy changes. The annual Social Security and Medicare trustees report released last May indicated that the program's trust fund will be unable to pay full benefits beginning in 2035.