Biden to sign new measures into law to increase Social Security payments for 3M employees
(MENAFN) President Joe Biden is set to sign a new measure into law on Sunday that will increase Social Security payments for nearly 3 million current and former public employees, including teachers, firefighters, Police officers, and other public service workers. The law addresses a long-standing inequity, according to advocates, although it may put additional strain on the Social Security Trust Funds, which are already facing a potential insolvency crisis.
The legislation eliminates two provisions—the Windfall Elimination Provision and the government Pension Offset—that have reduced Social Security benefits for individuals receiving retirement payments from other sources, including public pensions from state or local governments. The Congressional Research Service reported that as of December 2023, approximately 745,679 people, or 1 percent of all Social Security beneficiaries, saw their benefits reduced due to the Government Pension Offset. Additionally, about 2.1 million individuals, or 3 percent of all beneficiaries, were affected by the Windfall Elimination Provision.
The Congressional Budget Office (CBO) has estimated that removing the Windfall Elimination Provision will raise monthly payments by an average of USD360 for affected beneficiaries by December 2025. Likewise, eliminating the Government Pension Offset is expected to increase monthly benefits by an average of USD700 for 380,000 individuals receiving benefits based on living spouses. For 390,000 surviving spouses receiving widow or widower benefits, the increase would average USD1,190. These amounts will continue to rise with Social Security’s annual cost-of-living adjustments.
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