Two weeks before President Biden left the oval office, he signed H.R. 82 which is also known as the Social Security Fairness Act. This act was created to prevent two things, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), these things significantly reduced social security benefits for public sector workers. Public sector workers are people who are employed by the government, at the federal, local, or state level. WEP and GPO were created in 1980 to stop those who retired with a government pension from receiving full Social Security benefits.
Many believe that these rules have penalized teachers, firefighters, police officers and other public sector workers. The rules reduce retirement income despite contributing to the Social Security system in non-public sector jobs.
This law will increase income for retire public sector workers. Eliminating WEP and GPO will allow more than 2.5 million retired public sector workers to see an increase of around $360 per month in their Social Security benefits. It has been said that many will receive backpay for 2024, making up for the lower benefits they received last year. Although this is a positive for retired public sector workers, they may have to wait a while to see their increased payments.
The Social Security Fairness Act was approved by The House with a 327-75 vote, the Senate followed with a 76-20 vote. President Biden signed the law but now it is on President Trump to implement the law. President Trump has publicly supported the removal of WEP and GPO in the past, but some worry that Trump’s administration may pause the implementation because of money. The law is expected to cost almost $200 billion over the next decade.
Black Americans rely heavily on Social Security, for most it is their main source of retirement income, however inequalities have historically impacted their benefits. Black Americans have received lower lifetime earnings, job discrimination and lower access to jobs with retirement plans. Black Americans benefit the most from Social Security’s disability benefits because they have higher disability rates. Social Security plays a role in reducing poverty among Black seniors, 40% of Black retired people depending on it for at least 90% of their income.
Social Security remains a critical lifeline for Black Americans, the removal of WEP and GPO is the most beneficial to Black Americans because they have been disproportionately affected by the reduction in benefits.
