Biden Enacts Legislation to Boost Social Security Benefits for Millions

January 5, 2025 TruthUSA

Supporters of the legislation believe it finally eliminates restrictions on benefits for public servants. Critics argue that it could accelerate the insolvency of the Social Security program.

On January 5, President Joe Biden enacted a law aimed at increasing Social Security benefits for millions of Americans engaged in eligible public service occupations.

This legislation, known as the Social Security Fairness Act, is designed to enhance benefits for approximately 3 million Americans employed in public roles, particularly impacting those who have received state and local pensions that are separate from Social Security.

“By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses, and other public employees, including their spouses and survivors,” Biden remarked during the bill signing on January 5.

A White House official stated in an email to The Epoch Times that Biden became “the first president in twenty years to expand Social Security benefits” by signing the legislation.

The official connected the legislation to Biden’s broader commitment to Social Security. Both Biden and President-elect Donald Trump have consistently voiced support for Social Security while opposing significant changes that would reduce benefits or increase the retirement age.

The bill passed the House with bipartisan backing on November 12, securing a 327-75 vote. It then moved through the Senate similarly, with a 76-20 vote. Even many Republicans, typically more cautious about government spending and Social Security matters, largely favored the bill.

Advocates argue that this legislation rectifies long-standing inequities in the law that restricted benefits for public servants. It seeks to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—both of which previously curtailed the federal pension eligibility for public sector employees based on other income streams from state and local pensions.

Recent estimates from the Congressional Research Service indicate that around 2.1 million individuals have experienced benefit reductions due to the WEP, while approximately 746,000 individuals have been affected by the GPO.

Conversely, while the repeal of these provisions enjoys widespread political support, it is anticipated to escalate the federal government’s Social Security spending.

“The removal of the WEP and GPO would result in a permanent increase in outlays for scheduled Social Security benefits, meaning the amounts that the program would pay if it continued to disburse as planned under current law, irrespective of whether the two trust funds had adequate balances for those payments,” noted the Congressional Budget Office (CBO) in response to a query from Senator Chuck Grassley (R-Iowa) regarding the proposed legislation’s effect on the federal budget.

An earlier analysis from CBO in September projected that the repeal of the WEP would yield a net benefit increase of $360 by December 2025 for those impacted, while the repeal of the GPO could provide a benefits rise of approximately $700 monthly by the same date.

Additionally, some of the expenses from this bill will be funded through back pay from January 2024 onwards.

Critics argue that the bill would deliver an unjust financial advantage to government employees who have been exempt from Social Security taxes on their salaries originally.

The Heritage Foundation, a conservative think tank, estimates that this legislation could cost about $195 billion over the next ten years and accelerate the Social Security program’s insolvency.

Such implications pose challenges for the already stressed Social Security Trust Funds, which have been trending toward insolvency for over a decade.

The CBO has calculated that Social Security is projected to deplete its funds around 2033, and the enactment of the Social Security Fairness Act could advance that deadline by roughly six months.

The legislation emerges at a time when both political parties are increasingly aligned on the view of Social Security, with Trump and his party asserting their intention to leave both benefits and the retirement age untouched.

Nevertheless, funding challenges persist, and addressing the fundamental issues affecting Social Security will likely become a more pressing concern for lawmakers in the coming years.

Contributions to this report were made by Stacy Robinson.

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