President Joe Biden recently signed the Social Security Fairness Act into law. This legislation expands Social Security benefits for millions of retired Americans. It will provide an average monthly increase of $360 for more than 2.5 million Social Security recipients.
The law repeals two provisions that had reduced Social Security benefits for public workers who also held private-sector jobs. These provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), had been in place for over 40 years. Retired Canton City firefighter Carl Jordan has been actively working toward this repeal for nearly a decade.
He was invited to the signing ceremony at the White House on Sunday. Jordan explained, “When I decided to retire, I figured I would lose about 25% of my Social Security.
Social Security expansion benefits retirees
It extended my mortgage payoff period by 2 ½ years and compromised the ability of all firefighters working second jobs to retire with dignity.”
More than 100,000 retirees and public workers in Ohio will benefit from the increased Social Security payments. This includes firefighters, police officers, teachers, and postal workers. While these groups do not typically contribute to Social Security due to their enrollment in public pension systems, many also work jobs that do contribute.
The Congressional Budget Office estimates the new law will cost $196 billion over the next ten years. Critics argue that it could unfairly benefit certain workers, may increase hardships for others, and jeopardize the Social Security fund. Despite the challenges, many see the law as a correction to an unfair reduction in earned benefits.
Edward Kelly, General President of the International Association of Fire Fighters, stated, “With the act, Congress has restored the promise it broke when it originally enacted these provisions. As a result, retired firefighters, emergency medical workers, and other public employees will now receive the full benefits they have earned and paid into.”
The Social Security Administration is currently evaluating how to implement the act. Beneficiaries don’t need to take any action to receive the enhanced payments other than ensuring the agency has their current mailing address and direct deposit information.