Biden signed a Social Security measure to increase benefits for some retirees, know what benefits it will bring
On January 5, 2025, President Joe Biden signed a new measure aimed at increasing Social Security benefits for some retirees. The move is part of the government’s effort to provide better financial support to people who have served in public roles and who have not received proper benefits in the past.
Major changes in the Social Security measure
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Elimination of the Windfall Elimination Provision (WEP):
- The WEP previously reduced Social Security benefits for retirees who also received pensions from jobs not covered by Social Security taxes.
- With the WEP being eliminated, retirees affected by this provision will now receive full Social Security benefits without any reductions.
2. Repealing the Government Pension Offset (GPO):
- The GPO reduced Social Security spousal or survivor benefits for individuals receiving a government pension.
- Repealing this offset means that eligible individuals can now claim full spousal or survivor benefits, providing them with increased financial security.
Who will benefit from the new measure?
These changes primarily benefit public service workers, such as teachers, firefighters, police officers, and others, who were subject to reduced Social Security benefits due to the WEP and GPO. It is estimated that approximately 3 million retirees will see an increase in their benefits as a result of this new measure.
Financial impact on retirees
- Many retirees who were previously affected by the WEP and GPO will experience substantial increases in their monthly Social Security payments.
- For example, the average monthly benefit increase can range from $360 to more than $1,190, depending on individual circumstances.
Concerns about Social Security’s financial health
While the measure aims to correct past injustices, it has also raised concerns about the long-term sustainability of the Social Security system. The Congressional Budget Office estimates that these changes will add about $195 billion to the federal deficit over the next decade, potentially affecting future Social Security funds.
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