Major Social Security Bill Passed: $190B in New Benefits to be Paid After Eliminating WEP & GPO
- Major Social Security Bill Passed: $190B in New Benefits to be Paid After Eliminating WEP & GPO James Conole, CFP® 10:43
The Social Security Fairness Act, signed into law on January 5 by former President Joe Biden, repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which previously reduced Social Security benefits for individuals with non-covered pensions, such as teachers, firefighters, and postal workers. This change significantly increases benefits for affected individuals, in some cases by over $1,000 per month, and applies retroactively to the end of 2023.
While the law addresses long-standing concerns about fairness, it also accelerates the depletion of Social Security funds, already projected to face insolvency by the 2030s. This $190 billion expense over the next decade may force future changes, such as tax increases, higher Retirement ages, or adjustments to the system. For those impacted by WEP or GPO, the law offers immediate financial relief but highlights the need for broader, sustainable reform to preserve Social Security for all beneficiaries.
Questions answered:
How does the Social Security Fairness Act impact individuals with non-covered pensions like teachers, firefighters, and postal workers?
What are the potential long-term consequences of the Social Security Fairness Act on the Social Security fund's sustainability?
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Timestamps:
0:00 – SS Fairness Act — ex. Maria
2:46 – Bend points
4:49 – Back to Maria's situation
5:54 – Pros and cons
7:38 – Bill magnifies SS problems
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