President Joe Biden signed the Social Security Fairness Act on Sunday, repealing a controversial provision that reduced benefits for retirees. The Windfall Elimination Provision and Government Pension Offset were removed, restoring full payments for millions of Americans.
National Fraternal Order of Police and groups like the National Education Association support he law, which addresses long-standing inequities. President-elect Donald Trump also endorsed the legislation.
The provision enacted in 1983 slashed or eliminated Social Security benefits for 2.4 million retirees. The Windfall Elimination Provision reduced benefits for individuals who worked jobs that did not pay into Social Security consistently.
Meanwhile, the Government Pension Offset impacted retirees who received pensions instead of Social Security benefits from particular employment. By repealing both, the new law ensures retirees can access their full entitlements without penalties.
Alaska stands out as the state with the highest percentage of retirees benefiting from the new legislation due to widespread pensions. Retirees from Alaska’s old defined benefits plan discontinued in 2006 faced significant reductions in their Social Security payments.
However, workers from Juneau, whose employers paid into Social Security, avoided these reductions and will see no changes. The Congressional Budget Office estimated that eliminating the WEP will increase payments by $360 monthly for impacted retirees.
Similarly, repealing the GPO will raise benefits by $700 monthly for 380,000 retirees and $1,190 monthly for widowed beneficiaries. While retirees welcome these changes, critics warn the revisions may accelerate Social Security’s insolvency, potentially advancing it by six months. The Social Security Administration issued guidance in mid-2024 to help staff address public inquiries about the legislation’s effects.
The Social Security Fairness Act has restored fairness for retirees but raises concerns about the system’s future sustainability. Millions of Americans await the implementation of these pivotal changes.
This news article was originally published by Must Read Alaska.
