Some retirees could see thousands in back pay following new Social Security Fairness Act

President Joe Biden signed the Social Security Fairness Act into law on Jan. 5, repealing two provisions that previously reduced Social Security benefits for public sector retirees like teachers, firefighters and police officers.

The legislation removed the Windfall Elimination Provision. This reduced Social Security benefits for individuals who worked in jobs not covered by Social Security, including certain state and local government positions, and those who qualified for a public pension. 

The Government Pension Offset, which reduced spousal and survivor benefits for certain individuals receiving pensions, was also removed.

“Over two and a half million Americans are going to receive a lump sum payment of thousands of dollars to make up for the shortfall benefits they should have gotten in 2024. They are going to receive these payments this year and this is a big deal,” Biden said at a press brief. 

Richard Salinas, who represents the police union Teamsters Local 760 in Wenatchee, said he was concerned that repealing the act would strain the Social Security trust fund and accelerate calls for reforms to public pension systems. 

Salinas added that this might lead to disparities between beneficiaries and those who have paid into Social Security throughout their careers.

“What the public does not want to see is a rollout of the new law that is clunky when processing retroactive payments and communicating changes to those affected, regarding potential impacts of receiving these payments,” he said. “It’s a complex issue with many moving parts, and balancing the immediate benefits with long-term sustainability will be key.” 

Monika Christensen, president of the Wenatchee Education Association, said the act would benefit educators who have faced limited pensions due to underfunding and low wages, enabling them to retire with greater financial stability. The Wenatchee Education Association represents more than 500 educators in the Wenatchee School District. 

“This act will allow people, whether they’re firefighters, police officers, or teachers, to retire with dignity,” Christensen said. “They’ll have a little more money in retirement, which can make a significant difference.”

On Jan. 6, the Social Security Administration released a statement saying the administration is still evaluating how to implement the act, and will provide more information as it becomes available. 

“The bipartisan Social Security Fairness Act will help ensure that these public servants, including over 40,000 Washingtonians, receive the same level of Social Security as other Americans,” said U.S. Sen. Maria Cantwell, who co-sponsored the legislation, in a press release.