On Jan. 5, President Joe Biden signed a Social Security measure into law that will expand benefits for some retirees.
According to Reuters, this measure is being described as the first expansion of such Social Security benefits in 20 years.
Retirees who who may come to benefit from the Social Security Fairness Act include retirees who draw public pensions, such as former police officers, firefighters and teachers.
Social Security Fairness Act
Biden has said that this measure means an average monthly increase of $360 for over 2.5 million Social Security recipients. Additionally, beneficiaries will receive a sum of money in order to make up for the shortfall in benefits that should have been received in 2024.
This act terminates two federal policies that once barred employees, who have a public pension, from collecting their full benefits under the federal retirement program and reduced the benefits for those employees’ surviving spouses and family members.
Published caption: Jean Mitchell/Dayton Courier For those who use a tax preparation service, pictured here are documents needed to file for the rebate including a Social Security card, statement of earnings or a Social Security benefits statement for 2007, and any 1099Rs listing various distributions, such as those from pensions and annuities. ooo Jean Mitchell/Dayton Courier People who want to receive the federal economic stimulus rebate must file a 2007 tax return to receive the money ?whether or not they would ordinarily file a tax return. For those who would go to a tax preparation service, pictured here are documents that must be used to properly file for the rebate including your Social Security card, statement of earnings or your Social Security benefits statement for 2007, and any 1099Rs listing various distributions, such as those from pensions and annuities. Ask hard questions before investing in that annuity. They’re already the highest-commission financial tool, but they also do a poor job of protecting your retirement savings from the IRS. 02-27-DAY-senior views Ask hard questions before investing in that annuity. Theyre already the highest-commission financial tool, but they also do a poor job of protecting your retirement savings from the IRS.
The federal policies that have since been repealed in light of the new law are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The Social Security Fairness Act had bipartisan support, however the measure faced objections from some Republicans due to its cost, CBS News reported.
The Congressional Budget Office has estimated that the law would increase the federal deficit by $195 billion over the span of ten years.
The Congressional Budget Office has also estimated that by repealing the WEP, monthly payments to affected Social Security beneficiaries would increase by $360.
Additionally, by repealing the GPO, monthly benefits would increase by $700 for approximately 380,000 individuals who receive benefits based on living spouses.
How will the act be implemented?
According to an update made by the Social Security Administration, the administration is evaluating how to best implement the act.
The Social Security Administration says that, at this time, individuals do not need to take action except to verify current mailing addresses and direct deposit information.
Additionally, if individuals are receiving public pension and are interested in filing for benefits, then they may file online or schedule an appointment.
How will this affect Louisiana residents?
U.S. Senator Bill Cassidy and Louisiana delegation have worked to pass the Social Security Fairness Act, which passed the U.S. Senate with a vote of 76 to 20.
According to U.S. Senator Bill Cassidy, the two now-repealed federal policies, WEP and GPO, reduced Social Security benefits for almost 3 million Americans.
According to a news release by U.S. Senator Bill Cassidy, the Social Security Fairness Act ensures that public sector workers and their families in Louisiana will receive their full Social Security benefits.
Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for Gannett/USA Today. Find her on X @PresleyTyler02 and email at PTyler@gannett.com
This article originally appeared on Lafayette Daily Advertiser: What is the Social Security Fairness Act? Find out about impacts here