Biden signs windfall elimination provision repeal into law

President Biden on Sunday signed legislation repealing two controversial tax provisions impacting the retirement benefits of some federal workers and other public servants into law, effectively increasing Social Security benefits for more than 2 million retirees.

The Senate voted 76-20 to pass the Social Security Fairness Act (H.R. 82), introduced by Reps. Abigail Spanberger, D-Va., and Garret Graves and passed out of the House last November, R-La., just before lawmakers left for the Christmas break, sending the bill to Biden’s desk. The measure repeals Social Security’s windfall elimination provision and government pension offset.

The windfall elimination provision reduced the Social Security benefits of retired federal workers and other public servants who spent a portion of their career in the private sector in addition to a federal, state or local government job where Social Security was not intended as an element of their retirement income, such as the Civil Service Retirement System. And the government pension offset reduces spousal and survivor Social Security benefits in families with retired government workers.

“The bill I’m signing today is about a simple proposition: Americans who have worked hard all their lives to earn an honest living should be able to retire with economic security and dignity,” Biden said during a signing ceremony Sunday. “Social Security is the bedrock of financial security for retirees, survivors and for millions of Americans with disabilities . . . But the law that existed denied millions of Americans access to the full Social Security benefits they earned by thousands of dollars per year . . . Those benefits cuts cost them security, and a little bit of dignity as well.”

With the law’s enactment, more than 2 million retired public servants impacted by the WEP and 750,000 spouses and survivors affected by the GPO will see an increase on average of $360 per month to their Social Security benefits. Many also will receive a lump sum payment for the money they missed out on due to the two provisions over the entirety of 2024.

In a statement Sunday, Bill Shackelford, national president of the National Active and Retired Federal Employees Association, lauded the president for finally signing the bill that took years for Congress to pass, despite bipartisan support.

“Since their inception, NARFE has opposed the windfall elimination provision and government pension offset as unfair penalties that punished hardworking public servants by reducing their Social Security benefits,” he said. “Today, history was made ad President Biden signed the Social Security Fairness Act into law. This milestone represents the culmination of years of tireless advocacy by NARFE and its members, who time and again made the case for fairness and equality in Social Security benefits.”

In a statement Monday, the Social Security Administration acknowledged the bill’s enactment, and said the agency is “evaluating” how to implement it.