Biden signs Social Security bill that enhances benefits for millions

President Biden on Sunday signed a new law providing increased Social Security benefits for millions of American retirees, especially those in protective services like firefighters and police officers, as well as educators.

"Hardworking Americans who have dedicated their lives to earning an honest living should be able to retire with financial stability and respect," President Biden stated at the White House prior to signing the Social Security Fairness Act.

"That's a significant accomplishment for many of us, especially those of us who grew up in middle-class families," the president added.

The individuals eligible for these benefits will also receive a one-time payment in the thousands of dollars to compensate for the reduced benefits they would have received in 2024.

New change in policy barred employees with a public pension from receiving full benefits under the federal retirement program and cut back benefits for those workers' surviving spouses and family members.

For the first time in over two decades, a president is boosting Social Security benefits, a White House spokesperson said in a statement. "The bill that will be signed into law today will increase benefits by hundreds of dollars per month for more than 2.5 million Americans."

The teenager decided to make the trek for his charity that helps those with disabilities and elderly individuals who struggle to make ends meet on their limited monthly government benefits.

Legislation known as the Social Security Fairness Act aims to bring relief to millions of eligible recipients. However, the existing policies behind it are still contributing to financial difficulties.

Introduced in November as bill H.R. 82.

Long, hard road

Efforts to increase Social Security benefits for government retirees have been underway for many years, with the Senate's initial inquiry on the matter dating back to 2003.

The impact on the federal deficit over a 10-year period.

The increased payments under the new law will go back in time to December 2023. This means people who have been getting only partial help up to now will get a full payment, effective last year onwards.

A new Social Security law specifically withdraws two policies called the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), whose combined effect reduces Social Security payments to approximately 2.5 million retirees.

The President of the International Association of Fire Fighters, Edward Kelly, declared in a statement that Congress "broke a promise" when it implemented the Windfall Elimination Provision and the Government Pension Offset in a congressional vote on Sunday.

Today, we're fulfilling a pledge that's long been overdue, and retiring firefighters and paramedics will finally receive the Social Security benefits they rightfully deserve, having worked hard to earn and contribute to them.

What is the amount of additional benefits.

In September, experts predicted that eliminating the Windfall Elimination Provision would boost the monthly Social Security benefits for those affected by an average of $360 by December 2025, as reported by the Associated Press.

Ending the GPO rule would raise benefits by around $700 per month for about 380,000 people receiving benefits based on their living spouses by December 2025, according to the agency. This increase would be around $1,190 per month for around 390,000 surviving spouses getting benefits as widows or widowers.

"The law that was in place earlier prevented millions of Americans from receiving the full Social Security benefits they had worked for," President Biden stated after signing the new law into effect.

The new legislation doesn't tackle the "extensive financial burden on the trust funds or the complicated implementation procedures for the Social Security Administration," said Martha Shedden, president of the National Association of Registered Social Security Analysts.

They're figuring out how to put this change into effect. People who benefit from it don't have to do anything besides making sure the agency knows their current mailing address and bank information for direct deposit. Most people can do that by using the "my Social Security account" online without needing to call the agency or visit them in person.