Hey everyone, big news about Social Security! Last month, the Senate passed the Social Security Fairness Act, and it’s now heading to President Biden's desk for signing. This bill is a huge deal because it will increase Social Security benefits for millions of public sector workers, including former police officers, firefighters, and teachers. These increases could range from $300 to $700 a month or even more for some, and the best part is, these increases will be retroactive back to January 2024.
The bill removes two provisions that reduced benefits for people who receive public pensions, and it’s expected to cost about $195 billion over the next 10 years. President Biden is scheduled to sign it into law on January 6th, 2025, which is a big win for public sector retirees who have been dealing with unfair reductions in their Social Security benefits.
These benefit increases will start being paid out in 2025, and the retroactive payments will cover missed benefits from January 2024, which could add up to thousands of dollars. The Social Security Administration is still figuring out exactly how to implement the changes, but we can expect updates soon.
Additionally, the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) will raise benefits for many individuals, with some people seeing increases of up to $700 a month. These changes will make a real difference for many retirees who rely on these payments.
This bill also has some major potential benefits for the future. For example, if former President Trump is re-elected, he plans to eliminate federal taxes on Social Security benefits, which would put even more money back in people's pockets.
Stay tuned for more updates as these changes roll out!
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