President Joe Biden is set to sign a new measure into law that will impact nearly 3 million current and former public employees who receive pensions from their time in public service roles such as teachers, firefighters, and police officers. The Social Security Fairness Act aims to rectify a long-standing disparity by rescinding two provisions - the Windfall Elimination Provision and the Government Pension Offset - that have limited Social Security benefits for individuals receiving retirement payments from other sources.
According to estimates, around 1% of all Social Security beneficiaries were affected by the Government Pension Offset, while about 3% were impacted by the Windfall Elimination Provision. The elimination of these provisions is expected to increase monthly payments for affected beneficiaries by an average of $360 and $700, respectively, by December 2025.
