Social Security Fairness Act Brings Relief to Millions of Public Sector Workers
In late December Congress passed, and on January 5 President Biden signed into law, the Social Security Fairness Act (H.R. 82). This is the first significant expansion of Social Security benefits in over 20 years. This landmark legislation repeals two long-standing provisions that had reduced benefits for former government workers. Specifically, retirees who worked for an extended time in both a Social Security covered position and a public pension position, as well as their survivor beneficiaries, are impacted.
The law eliminates both the Windfall Elimination Provision (WEP) from 1983, and the Government Pension Offset (GPO) from 1977. These provisions had previously reduced Social Security benefits for public sector workers who also received public pensions, with some retirees experiencing benefit reductions of up to 50% or more.
This change particularly benefits three million retired public servants like police officers, firefighters, and teachers in states with public pension systems. In Ohio alone, nearly a quarter million residents will see their benefits restored to full levels. Ohio has one of the highest number of beneficiaries who will see increased benefits due to the state’s robust public pension systems.
The Social Security Administration estimates that affected recipients, including survivor beneficiaries, could see average increases of nearly $1,200 per month. Current retirees may be eligible for payments retroactive to the 2024 benefit year.
While the act received strong bipartisan support, it has faced some criticism regarding its fiscal impact. The legislation is projected to add $195 billion to the federal deficit over the next decade. However, supporters note that given the vast scale of the Social Security program, this increase only accelerates the Trust Fund’s projected depletion date by approximately six months.
This reform represents a significant victory for public sector workers who have long advocated for fair treatment in their retirement benefits, though it does not address the broader challenges facing Social Security’s long-term solvency.