Advocates say the Social Security Fairness Act rights a decades-old disparity, though it will also put strain on Social Security Trust Funds, which face a looming insolvency crisis.
The bill rescinds two provisions — the Windfall Elimination Provision and the Government Pension Offset — that limit Social Security benefits for recipients if they get retirement payments from other sources, including public retirement programs from a state or local government.
The Congressional Research Service estimated that in December 2023, there were 745,679 people, about 1% of all Social Security beneficiaries, who had their benefits reduced by the Government Pension Offset.
The change is to payments from January 2024 and beyond, meaning the Social Security Administration would owe back-dated payments.
The future of Social Security has become a top political issue and was a major point of contention in the 2024 election.
About 72.5 million people, including retirees, disabled people and children, receive Social Security benefits.
Along with ratifying the Social Security Fairness Act, earlier in his presidency Biden signed the Butch Lewis Act into law, which saved the retirement pensions of two million union workers. »
