Biden Signs Social Security Fairness Act, But Raises Concerns for Retirees

On January 5, 2025, President Joe Biden signed the Social Security Fairness Act into law, which will significantly increase Social Security benefits for nearly 3 million public-sector employees, with an estimated average increase of $360 per month. However, the legislation raises concerns regarding the financial stability of the Social Security trust fund, which was already projected to be depleted by 2033.

The new law eliminates two previous rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP previously reduced benefits for workers who had jobs without Social Security tax withholding, which often affected public-sector workers with additional private-sector employment. The GPO reduced Social Security benefits for spouses and survivors receiving pensions from government jobs.

Critics argue that while the elimination of these rules helps public-sector workers, it exacerbates the financial strain on the Social Security system, potentially accelerating the depletion of the Old-Age and Survivors Insurance Trust Fund by approximately six months. As a result, the minimum necessary benefit cut could rise to 26% when the fund becomes insolvent.

With automatic benefit cuts now racing closer on the timeline, Congress faces growing pressure to address this funding shortfall before it becomes critical. The Social Security Fairness Act increases both the spending demands of the program and the urgency for a long-term solution to ensure retirees' security.