Elon Musk warned that Social Security could fail because of money problems, but President Joe Biden signed a groundbreaking law increasing Social Security payments for both active and retired government workers less than 15 days before he left office.
The Social Security Equity Act is the name of the law that will make big changes. Find out who will benefit and what you need to know.
“The simple idea behind the bill I am signing today is that Americans who have worked hard their whole lives to make a living should be able to retire with financial security and honor.” “That is the whole point of Social Security,” Biden said on January 5, 2025, during a signing ceremony in the East Room of the White House.
Biden stressed at the event on Sunday, “By signing this bill, we are increasing Social Security benefits for millions of teachers, nurses, and other public employees, as well as their spouses and those who have died.”
In other words, this means an increase of about $360 per month on average. This big boost is meant to give people who have dedicated their lives to public service a safer financial future.
The Social Security Administration (SSA) says that the goal of the Social Security Fairness Act is to stop lowering Social Security benefits for people who are entitled to public pensions from work that is not covered by Social Security. These are the two most important parts that have been taken away:
Key Changes in the Social Security Fairness Act
1. Elimination of the Windfall Elimination Provision (WEP): The Windfall Elimination Provision (WEP) previously reduced Social Security benefits for individuals who also received pensions from jobs not covered by Social Security, such as certain public sector positions.
2. Government Pension Offset (GPO) Adjustment: The Government Pension Offset (GPO) was responsible for reducing spousal or survivor benefits from Social Security if the individual received a public pension from employment not covered by Social Security.
The Social Security Fairness Act is expected to help about three million people who have worked in jobs that are not covered by Social Security. This will mostly help people who get public pensions. People who work for state, local, or federal governments but do not contribute to Social Security but have their own pension plans are included.
People who have worked for the local, state, or federal government in jobs that are not covered by Social Security, like public school teachers, police officers, firefighters, people who work for the federal government, judges, and others, often have trouble getting their retirement benefits.
Understanding the Impact on Government Employees
People who get pensions from jobs where they did not contribute to Social Security (like many government or public service jobs) used to have their Social Security benefits cut because of the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).
Under the old law, people who got both a public pension and Social Security benefits often had their Social Security benefits cut. Thankfully, this decrease will no longer happen after the new law is put in place.
Benefits for Spouses and Survivors:
- People relying on Social Security benefits as spouses or survivors
- Previously faced reductions due to the GPO
- Will now see a positive change
These important changes have been made by the Social Security Administration. You can easily apply for benefits if you get a public pension and want to file your application online at ssa.gov/apply or make an appointment.
The Social Security Administration (SSA) says that if you have already applied for and received Social Security benefits, all you need to do now is make sure that they have your current mailing address and up-to-date information for direct deposit.
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