The new law repeals the 1983 Windfall Elimination Provision and eliminates the Government Pension Offset, both of which previously reduced Social Security benefits for certain beneficiaries, including some government retirees.
“Social Security is the bedrock of financial security for retirees and surviving spouses and for millions of Americans with disabilities,” President Biden said Sunday in the White House’s East Room. “A law that existed denied millions of Americans access to the full Social Security benefits they earned by thousands of dollars a year.”
Biden noted that 2.5 million people would receive lump sum payments “of thousands of dollars to make up for the shortfall and the benefits they should have gotten.”
“When I came to office, I promised I’d always protect Social Security, Medicare, and Medicaid,” Biden added. “That’s the promise we’ve kept, even in the face of proposals that cut or weaken these programs that millions of Americans count on. I know there’s a lot more work to do.”
However, critics of the legislation, including the Congressional Budget Office, warn that without new revenue sources, this move may accelerate Social Security’s projected insolvency by six months, bringing the estimated date of insolvency from 2033 to earlier.
Some uncertainty surrounded whether Biden would sign the bill, as White House Press Secretary Karine Jean-Pierre declined to confirm a timeline during Friday’s press briefing.
Despite criticism, White House officials emphasized Biden’s role in expanding Social Security benefits, making him “the first president in more than twenty years to do so.”
“The bill he is signing today will expand benefits by hundreds of dollars per month for more than 2.5 million Americans,” the White House stated. “As President, he saved the retirement pensions of two million union workers with the Butch Lewis Act and has protected retirees from receiving junk retirement advice. He has stood up to reckless Republican attempts to cut Social Security, Medicare, and Medicaid, instead fighting to expand Social Security benefits for those who need it most. He is strengthening Social Security and Medicare by asking the wealthiest to pay their fair share and investing in a well-staffed Social Security Administration to ensure hard-working Americans can access the benefits they’ve earned.”
