Major Changes to Social Security Signed into Law: What You Need to Know

Social Security has long been a sensitive topic in American politics, often referred to as the “third rail” due to the risks politicians face when discussing it. However, recent legislative changes may shift that perception. The most significant update to Social Security in decades has just become law. How will these changes impact you?

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Understanding the Social Security Changes

On Sunday, President Joe Biden signed the Social Security Fairness Act of 2023. This new law eliminates two longstanding provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have been part of Social Security for over 40 years.

The WEP was designed to decrease Social Security benefits for individuals who receive pensions or disability benefits but did not pay Social Security taxes on their earnings. Meanwhile, the GPO aimed to reduce benefits for spouses, widows, and widowers who also receive government pensions.

With the repeal of these provisions, many retirees who had seen reduced benefits may now qualify for full Social Security payouts. Biden remarked, “The bill I’m signing today is about a simple proposition: Americans who have worked hard all their lives… should be able to retire with economic security and dignity.”

This notable legislation saw support from both sides of the aisle. It was sponsored by former Sen. Sherrod Brown, D-Ohio, and Sen. Susan Collins, R-Maine, in the Senate, while Rep. Garret Graves, R-La., and former Rep. Abigail Spanberger, D-Va., led the effort in the House. The law’s passage reflected strong bipartisan agreement in Congress.

Who Will Be Impacted?

The WEP mainly affects individuals employed by state or local governments or non-U.S. employers, while the GPO is relevant for those receiving pensions from government jobs where Social Security taxes were not paid. If you fall into either category, this new legislation could directly impact you.

The Social Security Fairness Act of 2023 will take effect after December 2023. Currently, around 2 million beneficiaries face reductions due to the WEP, and nearly 750,000 are impacted by the GPO.

Biden highlighted the positive implications of this change, stating, “By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses, and other public employees and their spouses and survivors. That means an estimated average increase of $360 per month.” Furthermore, over 2.5 million Americans will receive retroactive lump-sum payments for missed benefits from the previous year.

This initiative has been celebrated by advocates for retired government employees. William Shackelford, president of the National Active and Retired Federal Employees Association, expressed his enthusiasm: “With the repeal of WEP and GPO, federal retirees, along with many others, will finally receive the full Social Security benefits they’ve earned.”

Steps to Take if You’re Affected

The Social Security Administration (SSA) updated its website on January 6, 2025, to inform the public about the Social Security Fairness Act. They indicated that individuals affected by the new law do not need to take any action except to confirm that their mailing address and direct deposit information are current. Changes can be made online through your my Social Security account or by visiting a local Social Security office. The SSA assured that they will provide additional information as it becomes available.

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