Congress has passed a bill that changes the way beneficiaries of government pensions are treated for Social Security purposes. The Social Security Fairness Act was sent to President Biden for his signature. It eliminates a provision that reduces Social Security benefits for workers including police, firefighters, teachers and others who were employed by organizations with their own pension programs. Even though these individuals receive public pensions or disability benefits from jobs not covered by Social Security, they may have also held jobs where they did pay into Social Security. These individuals will no longer be penalized by the “windfall elimination provision.”
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