Legislation Expanding Social Security Benefits Signed Into Law
In the early hours of December 21, 2024, the Senate overwhelmingly passed H.R. 82, the Social Security Fairness Act of 2023, which includes a repeal of the Windfall Elimination Provision (WEP). The bill passed the Senate with a vote of 76-20 and the House with a vote of 327-75, and President Biden signed the bill into law on January 5, 2025. These changes should be effective for benefits payable after December 2023.
Enacted in 1983 and implemented in 1985, the WEP reduces Social Security benefits for individuals who receive pensions from work not covered by Social Security, including pensions from non-U.S. employers and state benefits of other nations. This provision has particularly impacted workers with international careers, as it lowers benefits for those who have earned pensions from jobs that don’t contribute to the U.S. Social Security system, often resulting in reduced retirement income compared to U.S.-based workers. To better understand how the WEP works and the impact of totalization agreements, consider reading this article.
