President Joe Biden has signed into law the Social Security Fairness Act, a historic measure that will boost Social Security payments for nearly 3 million current and former public employees, including teachers, firefighters, police officers, and others who served in public service roles. This new law addresses a long-standing disparity in the system, although it adds further strain to Social Security Trust Funds, which face a looming insolvency crisis.

The legislation removes two key provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced Social Security benefits for individuals who also received pensions from public retirement programs. According to the Congressional Research Service, about 1% of all Social Security beneficiaries were affected by the GPO and 3% by the WEP as of December 2023.

The Congressional Budget Office estimates that eliminating the WEP will increase monthly payments by an average of $360 by December 2025. Similarly, ending the GPO will boost monthly benefits by an average of $700 for 380,000 recipients and $1,190 for 390,000 surviving spouses. These increases will grow over time through Social Security’s cost-of-living adjustments, with back-dated payments starting from January 2024.

Impact on Public Service Workers

Edward Kelly, president of the International Association of Fire Fighters (IAFF), celebrated the change, calling it the correction of a “40-year wrong.” He noted that surviving spouses of firefighters who contributed to Social Security but were penalized by the previous system would especially benefit. The IAFF, with over 320,000 members, applauded the policy’s potential to make retirement more attainable for low-paid public servants.