President Joe Biden formally enacted the Social Security Fairness Act on Sunday, marking a significant legislative change aimed at improving the retirement security of millions of public sector workers, including firefighters, police officers, teachers, and others.

In his remarks at the signing ceremony, Biden stated, “Americans who have worked hard all their life to earn an honest living should be able to retire with economic security and dignity. That’s the entire purpose of the Social Security system crafted nearly 90 years ago.” This new law promises an average monthly increase in benefits by $360 for more than 2.8 million affected workers, with retroactive payments beginning as of January 2024.

The legislation repeals two longstanding provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both policies had previously decreased Social Security benefits for retirees receiving public pensions not covered by the system. Biden emphasized the law's importance, stating it "rights a 40-year wrong."

As noted by the CBS News, the act passed with strong bipartisan support in both the House and Senate, highlighting the urgency and popularity of addressing this inequity for public workers. Specifically, the Congressional Budget Office (CBO) estimates that eliminating the WEP will potentially increase monthly benefits by an average of $360, while the GPO's repeal would raise benefits by an average of $700 for spouses benefiting from public worker pensions.

Critics, however, caution that the Social Security Trust Funds could face additional strain as the country grapples with the potential for insolvency by 2034. The impacts of the new law may exacerbate these financial pressures, costing nearly $196 billion over the next decade, as reported by Time.

Key labor leaders and advocates for public service workers have expressed their support for the legislation. Edward Kelly, president of the International Association of Fire Fighters, remarked, “Now firefighters who get paid very little can now afford to actually retire.” Meanwhile, Senator Susan Collins of Maine, a primary sponsor of the bill, noted that this legislation ensures “public service no longer comes at the expense of the retirement benefits earned by an individual or their spouse.”

Going forward, the Social Security Administration (SSA) is expected to provide further details on the implementation of the Social Security Fairness Act. Individuals can ensure their benefits are aligned with the new law by checking their records and ensuring updated information is on file at the SSA's official site (my Social Security account).

This milestone in Social Security reform has received significant attention in light of the upcoming elections, underscoring the public's demand for secure and fair retirement benefits for those who have served their communities. For more details, visit The Hill.