Many Social Security advocates and longtime public workers are celebrating the Social Security Fairness Act, which President Joe Biden signed into law Jan. 5.
But the excitement around tearing down two unpopular Social Security provisions obscures an important fact, according to Olivia Mitchell of the University of Pennsylvania: The new law, which repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), will hasten the trust fund's depletion by six months.
That's "concerning," said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare. That said, it's a trade-off, as "there was a huge unfairness in the application of the WEP and GPO."
Biden said at the signing event at the White House that the average benefit increase for these newly eligible public servants will be $360 per month. They also will receive a lump-sum payment for what they would have received in 2024.
I caught up with Mitchell on Wednesday to get her views on the newly passed law and what other changes may be afoot regarding Social Security.
THINKADVISOR: The Social Security Fairness Act would hasten depletion of the trust fund by six months, correct? What are your thoughts on this?
MITCHELL: The U.S. Social Security system faces insolvency within just a few years, by 2033; after that, retiree benefits cannot be paid in full, unless the system is reformed. This Act is projected to hasten the system’s insolvency date by about half a year.
