Big News! Biden Just Signed the Social Security Fairness Act – Here’s Who’s Getting Bigger Payments?

The Social Security Fairness Act is a new law that has been signed to remove two important rules that are used to reduce benefits for certain workers. These rules were:

• The Windfall Elimination Provision (WEP)
• The Government Pension Offset (GPO)

The WEP used to lower Social Security payments for people who worked in jobs that didn’t contribute to Social Security, like some government jobs, but still qualified for Social Security benefits.

This was unfair because workers who paid into Social Security all their lives were getting the same amount as those who didn’t.

The GPO also reduced Social Security benefits for people who earned government pensions from jobs that did not pay into Social Security.

So, a person who worked in a government job and also earned Social Security would see a cut in their Social Security benefits.

The new law removes both the WEP and the GPO, making it so that workers who also get a pension from public service or government jobs can now get their full Social Security benefits.

This is a big change that will help many workers, especially those who were affected by the old rules.

Who Will Benefit from the Social Security Fairness Act?

The American Federation of Government Employees says that over two million retired public employees, their families, and survivors who lost out on Social Security benefits because of the WEP and GPO will now be able to get more money.

The law will help them by increasing their Social Security payments.

On average, retirees who were affected by these rules will see their Social Security benefits increase by about $360 each month. This is a significant amount that will help improve the financial situation for many people.

In addition to getting bigger monthly checks, workers who were affected by the WEP and GPO will also get a lump sum payment.

This is the money they missed out on in the past. The payment will include money that should have been paid to them last year, and it could be thousands of dollars for some workers.

How Will the Payments Be Made?

The Social Security Administration is making the process easy for people who have already filed for Social Security.

They will automatically receive the extra payments that they are owed. If someone already filed but had their benefits reduced because of the WEP or GPO, the SSA will take care of this for them.

However, if someone has not yet filed for Social Security but is already receiving a government pension, they must apply for Social Security.

They can do this by either applying online or scheduling an appointment with their local Social Security office. This is necessary to make sure they get the full benefits they are now entitled to.

What Does This Mean for Retirees and Social Security?

While this is a win for many public workers and retirees, there are concerns about the long-term impact on Social Security’s finances.

The changes in the law will increase the amount of money going out to retirees. This could put a strain on the program, which is already facing financial difficulties.

The Social Security trust fund is expected to run out of money by 2035. Paying more benefits could mean that lawmakers will need to act sooner to make sure Social Security can continue to provide full benefits to all retirees.

Conclusion

The Social Security Fairness Act is a big win for many retirees, especially those who were affected by the old rules of the WEP and GPO.

With higher benefits and lump sum payments, over two million public workers will now see an increase in their Social Security income.

But, the changes could also bring challenges for the future of Social Security. As more people receive larger payments, it could push the Social Security trust fund to run out of money even sooner.

Lawmakers will need to find a solution to keep Social Security sustainable for future generations.