Biden Signs Bill to Boost Social Security Benefits for Millions
Source: Xinhua News Agency / Getty
According to CNBC, teachers, firefighters, police officers, and other public sector employees who also get pension income can now receive increases through Social Security benefits, according to the Social Security Fairness Act. This is a bipartisan piece of legislation signed by President Joe Biden on Sunday.
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Two provisions that have been in effect for more than 40 years, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), are being repealed under the new law, which coincides with the benefit increase.
Who does this bill effect?
People receiving disability benefits from jobs where Social Security payroll taxes were not withheld have their Social Security benefits reduced by the WEP. This clause impacted around 2 million Social Security recipients as of December 2023.
Wives, widows, and widowers who also get income from their own government pensions have their Social Security benefits reduced by the GPO. The GPO impacted over 750,000 beneficiaries in December 2023.
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In Biden’s announcement, he projects a $360 a month increase on average for middle class households who are teachers, nurses, and public workers.
To compensate for the 2024 benefit shortfall, Biden announced that over 2.5 million Americans would get a lump sum payout of thousands of dollars.
After December 2023, Social Security benefits payable will be impacted by the Social Security Fairness Act. According to the Social Security Administration, more information regarding the implementation of the benefit increase is not yet available.
