On Sunday, Jan. 5, surrounded by lawmakers on both sides of the aisle and representatives from national unions (including ours), President Joe Biden signed the Social Security Fairness Act into law. This landmark legislation repeals the Windfall Elimination Provision and the Government Pension Offset, two pieces of federal law that have robbed millions of public servants of Social Security benefits they earned for over 40 years.
“The bill I’m signing today is about a simple proposition. Americans who have worked hard all their life to earn an honest living should be able to retire with economic security and dignity,” Biden said Sunday during the signing ceremony at the White House.
In total, roughly 2.8 million Americans who work as teachers, school staff members, firefighters, police officers, and in other public-sector jobs, now will receive the full amount of their earned Social Security benefits in retirement.
The Social Security Fairness Act received broad bipartisan support in both the U.S. House (327-75) and Senate (76-20). You can see how your representative voted in our previous Hotline article; for Texans, the Senate vote was a mixed bag. Sen. John Cornyn voted for the bill, and Sen. Ted Cruz voted against it.
Why Repealing WEP & GPO Matters
AFT members in Texas and nationwide have been instrumental in the fight to repeal these federal provisions. But if you’re new to this issue or haven’t been confronted with it yet, here’s a quick primer on why the enactment of this law is so monumental.
The Windfall Elimination Provision (WEP) first passed in 1983 as an austerity measure intended to eliminate the so-called “windfall” received by Americans who worked in jobs that do not pay into Social Security and have a public pension. But instead of preventing some mythical largesse in retirement, the WEP penalized some of our country’s most critical employees, including millions of public school teachers and staff.
What the WEP did not take into account is just how many people come to these important jobs as a second (or third or fourth) career. AFT estimates that nearly half of our members arrive in our public schools after working elsewhere, likely where they paid into Social Security.
For those in Texas who turn to teaching as a second career, they have been hit with the reality that up to 60% of their earned Social Security benefits would be cut in retirement.
The Government Pension Offset (GPO), meanwhile, was even more cruel. The GPO, passed in 1977, reduced spousal and survivor Social Security benefits for beneficiaries who were government employees – including public school teachers and staff members. By dint of choosing to dedicate their lives to the public good, many of our children’s teachers, our community’s firefighters, and our country’s essential workers were stripped of vital support their spouses earned too.
“Everyone knows a teacher, firefighter, law enforcement officer, nurse, or public worker who’s paid into Social Security year after year, only to have their payments curbed by the Windfall Elimination Provision and Government Pension Offset when they retire,” said AFT President Randi Weingarten following the passage of the bill in the U.S. Senate in December. “Now, that penalty will be consigned to the dustbin of history, where it belongs.”
Why Having a National Union Matters
At Sunday’s signing ceremony at the White House, AFT members were well represented with leaders of our union across the country in attendance. That includes Texas AFT President Zeph Capo, who spoke about how important this law is to him personally and to our Texas members.
Texas AFT Retiree Plus members have been laser-focused on this issue for years, alongside AFT counterparts nationwide. Passing this law should not have taken decades of advocacy, but it would not have happened without it.
“Texas AFT Retiree Plus members have never stopped fighting for this crucial reform, even as so many of us suffered hardships and grieved losses of our own,” said Rita Runnels, chair of Texas AFT Retiree Plus. “This has been a long road; the Senate held its first hearings on this issue in 2003. But our retirees’ dedication and persistence prove that grassroots advocacy can overcome even the toughest political obstacles.”
Not only does this victory underscore the importance of sustained, persistent advocacy, but it also illustrates the importance and value of being affiliated with a national union.
In Texas, educators can choose between several associations and two unions for insurance coverage and workplace protection. Often, we hear some of those competing associations claim they’re the best choice because they don’t “waste” dollars by sending them to a national organization.
But in AFT, we are proud to represent our members’ needs locally, at the state level, and nationally. Without our national union leading the charge on this issue and pounding the pavement inside the Capitol alongside other national labor unions, this victory is not possible.
The only way we can thrive is by working together; our local unions, state federation, and national union allow us to do just that.
What Retirees Can Expect Next
The Social Security Administration is finalizing details about how it will implement the Social Security Fairness Act, according to a statement released Monday. But no immediate action is needed on your part to receive your updated benefits.
That said, do make sure that your current mailing address and direct deposit information are up to date in your Social Security account.
How much can you expect your benefit to increase if you’ve previously been hit by WEP or GPO? It will vary, case by case. But according to an estimate from the Congressional Budget Office:
- Retirees affected by WEP will see their Social Security benefits increase by an average of $360 per month by the end of this year.
- Spouses affected by GPO will receive an average monthly increase between $700-1,190.
Those amounts apply to benefits from January 2024 onward, so you may receive back-dated payments for benefits from last year. Of course, these amounts will grow over time in accordance with Social Security’s cost-of-living adjustments.
“None of us entered our careers as teachers, paraprofessionals, or support staff members thinking they would make us wealthy,” Runnels said. “We taught and tended to the next generations because we loved our important work. But we expected to get the benefits we earned. I’m grateful Congress and President Biden have finally delivered on that promise.”