Biden To Sign Bill That Will Raise Social Security Payments For Millions

President Joe Biden is expected to sign a bill on Sunday that will enhance Social Security benefits for certain government retirees. However, this legislation is also likely to exacerbate the financial challenges facing the program, adding pressure to its already strained funding.

The Social Security Fairness Act will eliminate the Windfall Elimination Provision (WEP).

The Windfall Elimination Provision reduces Social Security benefits for public sector workers who receive pensions from jobs where they did not contribute to Social Security payroll taxes. These workers are also eligible for Social Security benefits based on their other employment, but the WEP reduces the amount they can receive.

The bill will also abolish the Government Pension Offset (GPO), which lowers Social Security benefits for specific spouses, widows, and widowers who receive pensions from employment that is not covered by Social Security taxes.

Supporters of the bill argue that the WEP has shortchanged the retirees it affects. However, rather than providing them with less than they are owed, the WEP is intended to prevent them from receiving benefits that exceed those of private-sector workers with similar employment histories.

Decades ago, Congress enacted the measure to ensure fair treatment between individuals who pay Social Security taxes throughout their careers and public-sector workers who have some Social Security-covered earnings but also receive pensions from jobs where they didn't contribute to Social Security taxes. The provision was designed to address the disparity between these two groups.

The Congressional Research Service estimated that in December 2023, roughly 745,679 people, or about 1% of all Social Security recipients, had their benefits reduced by the Government Pension Offset. Additionally, approximately 2.1 million individuals, or about 3% of the total beneficiaries, were affected by the Windfall Elimination Provision.

In September, the Congressional Budget Office estimated that removing the Windfall Elimination Provision would increase monthly payments for affected beneficiaries by an average of $360 by December 2025.

Although some Republicans, like Senator Susan Collins of Maine, backed the legislation, others, including Senators John Thune of South Dakota, Rand Paul of Kentucky, and Thom Tillis of North Carolina, opposed it. "We gave in to the pressure of the moment rather than addressing this in a sustainable way," Tillis told The Associated Press last month.

The future of Social Security has become one of the most pressing political issues and a major area of disagreement during the 2024 election. With approximately 72.5 million people—ranging from retirees and disabled individuals to children—relying on Social Security benefits, the program's sustainability and its potential reforms have sparked intense discussions among lawmakers and candidates.