One of former President Joe Biden’s final actions in office is set to significantly increase Social Security retirement benefits for millions of Americans. On January 5, Biden signed the Social Security Fairness Act into law, repealing two long-standing provisions that previously reduced benefits for certain workers. The changes could mean an increase of up to $1,190 per month for eligible retirees.
Read now: What is Full Retirement Age?
The two provisions eliminated by the law—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—were initially designed to prevent individuals from receiving what was considered an unfair financial advantage by collecting both a public pension and Social Security benefits. However, these provisions often resulted in reduced benefits for millions of retirees, including teachers, firefighters, and law enforcement officers.
How WEP and GPO reduced social security payments
The Windfall Elimination Provision (WEP) affected workers who received pension benefits from jobs that did not withhold Social Security taxes. As a result, their Social Security retirement payments were significantly reduced.
The Government Pension Offset (GPO) applied to individuals who had public pensions from jobs where they didn’t pay Social Security taxes. Under this rule, retirees often lost access to spousal benefits, including benefits from a living, deceased, or former spouse who had paid into Social Security.
According to the Social Security Administration (SSA), around 3.2 million retirees saw reduced benefits due to these provisions. With their repeal, many could now see an increase in monthly payments. Estimates from the Congressional Budget Office (CBO) indicate that payments may rise by up to $1,190 per month, depending on an individual’s work history and pension details.
Read now: What happens if I work and get Social Security retirement benefits?
Who stands to benefit from the change?
The repeal of WEP and GPO primarily impacts public sector employees, such as teachers, police officers, and firefighters. However, not all government workers will see an increase in benefits. According to the SSA, only those who receive a pension from work that was not covered by Social Security will experience a boost in their monthly payments.
For example, teachers in states like Massachusetts, where they contribute to the Teachers’ Retirement System instead of Social Security, previously faced reduced retirement benefits due to WEP. Even if they had worked other part-time or summer jobs that required them to pay Social Security taxes, their overall benefits were still cut under the old system.
Now, under the Social Security Fairness Act, these individuals will see their monthly payments increase and will also receive retroactive benefits back to January 2024. Additionally, public workers whose spouses paid into Social Security can now claim spousal benefits, something that was often denied under the GPO rule.
How spousal and survivor benefits are affected
The repeal of GPO also expands access to spousal and survivor benefits. Previously, if a retiree had their own government pension, they often could not receive benefits based on their spouse’s Social Security record.
Under the new law:
- Individuals can claim 50% of their spouse’s Social Security benefit once the spouse reaches retirement age, if that amount is higher than their own retirement benefit.
- Surviving spouses at full retirement age can claim 100% of their late spouse’s benefits, even if they have their own government pension.
When will retirees see higher payments?
The Social Security Administration has moved quickly to implement these changes. According to an official statement from the agency, retroactive benefits for eligible retirees will begin immediately, with most individuals receiving their one-time lump sum payments by the end of March 2024. Higher monthly benefits will be reflected in April.
Lee Dudek, Acting Commissioner of Social Security, emphasized the urgency of the rollout, stating:
“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible.”
“The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation. The American people deserve to get their due benefits as quickly as possible.”
How to check your eligibility
If you were already collecting Social Security before January 2024, you should see your newly adjusted payments automatically. If you were eligible but had not yet applied due to the restrictions of WEP and GPO, your application will now be processed with full benefits taken into account.
For more information, visit the Social Security Administration’s website, which includes a dedicated section on the Social Security Fairness Act and updates on benefit disbursement.
The repeal of these provisions marks a major shift in how public sector retirees receive benefits, helping millions of Americans access the full retirement income they have earned.
