President Joe Biden signed the bipartisan Social Security Fairness Act, which increases payouts to retired public sector workers and raise the national debt by at least $196 billion.
The act rescinds the Windfall Elimination Provision and the Government Pension Offset, which adjusted the retirement benefits for public sector workers and their families, including police officers, firefighters, public health workers and public school teachers.
The WEP reduced Social Security benefits for people who worked in both government and private-sector jobs before retiring, thereafter receiving both a pension and partial Social Security benefits.
The GPO made similar adjustments for spouses and survivors who also worked in government jobs not subject to Social Security paycheck reductions.
“Americans who have worked hard all their life to make an honest living should be able to retire with economic security and dignity,” Biden said during the signing ceremony Sunday. “I’m proud to have played a small part in this fight.”
Biden added that more than 2.8 million retirees who currently receive limited Social Security benefits will see an average increase of $360 on their monthly payments. More than 2.5 million of those recipients will also receive a lump sum payment of thousands of dollars to cover undistributed benefits from 2024.
While the Congressional Budget Office estimates the act will cost $196 billion, fiscal watchdogs say it will cost closer to $233 billion when debt interest is taken into account.
A report by the National Taxpayers Union Foundation, a fiscal advocacy organization, said the change will also speed up Social Security’s insolvency, which is projected to occur in 2035, by six months.
“The Social Security Fairness Act would impose a heavy burden on taxpayers by adding $233 billion to the national debt, hastening Social Security insolvency, and reducing scheduled benefits for individuals who have been paying into Social Security for their entire careers,” said NTUF Vice President of Research Demian Brady. “Rather than undermining the broader Social Security system, reforms should focus on addressing its long-term fiscal challenges.”
The national debt grew by $2.5 trillion in fiscal year 2024 alone, reaching $36.3 trillion, The Center Square reported.
