Biden Enacts Law Increasing Social Security Benefits for Millions of Public Pensioners “`

WASHINGTON — President Biden signed legislation on Sunday increasing Social Security benefits for current and former public sector employees. This impacts approximately 3 million individuals receiving pensions from roles such as teachers, firefighters, and police officers.

Supporters describe the Social Security Fairness Act as rectifying a long-standing inequality, acknowledging the added financial burden it places on already strained Social Security Trust Funds, facing an impending insolvency crisis.

The bill repeals two provisions—[Name of provision 1] and [Name of provision 2]—that reduced benefits for recipients also receiving other retirement payments, including those from state or local government programs.

“This bill embodies a simple principle: hardworking Americans deserve secure and dignified retirements—the fundamental goal of Social Security,” President Biden stated during the White House East Room signing ceremony. He emphasized the bill’s significance, calling it “a big deal.”

President Biden was joined by labor leaders, retirement advocates, and bipartisan lawmakers, including the bill’s primary sponsors, Senator Susan Collins (R-ME) and Senator Sherrod Brown (D-OH), who received a standing ovation.

The Congressional Research Service estimated that in December 2023, approximately 745,679 individuals (about 1% of all Social Security beneficiaries) experienced benefit reductions due to the Government Pension Offset. Around 2.1 million beneficiaries (approximately 3%) were affected by the Windfall Elimination Provision.

The Congressional Budget Office estimated in September that eliminating the Windfall Elimination Provision would raise monthly payments for affected beneficiaries by an average of $360 by December 2025. Ending the Government Pension Offset would increase December 2025 monthly benefits by an average of $700 for 380,000 recipients receiving spouse benefits, and by an average of $1,190 for 390,000 surviving spouses.

These amounts will increase over time with Social Security’s annual cost-of-living adjustments.

The changes apply to payments from January 2024 onward; the Social Security Administration will issue retroactive payments. The legislation mandates that the Social Security commissioner adjust primary insurance amounts accordingly. The implementation details and any required beneficiary actions remain unclear.

Edward Kelly, president of the International Association of Fire Fighters, expressed enthusiasm about the change, viewing it as correcting a four-decade-old injustice. He highlighted the particularly harsh impact on surviving spouses of firefighters.

The IAFF boasts roughly 320,000 members, excluding the numerous retirees who will benefit from the change. Kelly noted that the policy change will allow firefighters with modest salaries to afford retirement.

Senator Sherrod Brown, a long-time advocate for this proposal, lost his reelection bid in November. Lee Saunders, president of the American Federation of State, County and Municipal Employees, thanked Senator Brown for his persistent advocacy.

“Over two million public service workers will finally receive the Social Security benefits they contributed to throughout their careers,” Saunders stated. “Many will finally enjoy retirement after a lifetime of dedicated service.”

National Education Association President Becky Pringle called the law “a historic victory” that will positively impact educators, first responders, postal workers, and other public servants.

While some Republicans, such as Senator Collins, supported the legislation, others, including Senators John Thune (SD), Rand Paul (KY), and Thom Tillis (NC), opposed it. Senator Tillis criticized the decision as prioritizing immediate pressure over long-term sustainability.

Republican supporters argued the bill presented a rare opportunity to address an unfair aspect of federal law disadvantaging public service retirees.

Social Security’s future has become a significant political issue and was a major point of contention in the 2024 election. Approximately [number] individuals, including retirees, disabled individuals, and children, receive Social Security benefits.

The policy changes will increase the workload of the Social Security Administration, which is already operating with its lowest staffing levels in decades. The agency, currently under a hiring freeze, has a workforce of about 56,645—its lowest level in over 50 years—despite [reason for increased workload].

The annual Social Security and Medicare trustees report from last May projected that the program’s trust fund will be unable to pay full benefits starting in 2035. The new law is anticipated to accelerate this insolvency by approximately six months.

Earlier in his presidency, President Biden also signed the Butch Lewis Act, safeguarding the retirement pensions of two million union workers.

—Associated Press writer Stephen Groves contributed to this report.