The Social Security Fairness Act, recently enacted with bipartisan support, promises significant benefit increases for over 3.2 million individuals, including teachers, police officers, firefighters, and other public servants. Signed into law on January 5 by then President Joe Biden, the legislation eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which had previously reduced Social Security benefits for individuals receiving pensions from non-covered employment. As a result, beneficiaries can expect higher monthly payments ranging from $360 to $1,190, depending on individual circumstances.
The Congressional Budget Office estimates that the cost of implementing this law will reach $200 billion over the next decade. Although the law affects about three times as many beneficiaries compared to previous legislation that impacted around 1 million people at a cost of $65 million, challenges lie ahead. The Social Security Administration (SSA) must now automate 95% of the WEP cases to efficiently process these changes, a task complicated by existing resource constraints.
"Under SSA's current budget, SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits," – The Social Security Administration's website
The SSA, currently operating under a continuing resolution set to expire in March, faces a staffing shortage at a 50-year low. This situation could significantly impact the timely implementation of the new law. The agency also bears the responsibility of identifying over 100,000 beneficiaries who may have died in 2024 and ensuring that their survivors receive due benefits. Adding to the workload, the law mandates lump-sum payments for benefit increases dating back to January 2024, requiring meticulous calculations from the SSA.
David A. Weaver, a former SSA executive, highlighted the potential financial strain on the agency:
"Congress either provides funding to cover the implementation costs, or SSA is going to struggle to work these cases," – David A. Weaver, a former Social Security Administration executive
The SSA may require an estimated $200 million to implement the necessary changes. Without additional funding, the agency could face significant delays in processing and distributing benefits. The automation of WEP cases and manual input from SSA employees are expected pain points that could contribute to these delays.
A bipartisan group of Senators has expressed urgency in implementing the legislation:
"We call for the immediate implementation of this legislation to provide prompt relief to the millions of Americans impacted by WEP and GPO," – A bipartisan group of Senators
The need for an increased SSA budget to accommodate these implementation costs has been emphasized:
"When Congress addresses that … it'd be useful for Congress to increase SSA's budget to account for the implementation costs," – David A. Weaver, a former Social Security Administration executive