If you’re a retired public employee, your Social Security check could be getting a boost this year.
The Social Security Fairness Act, which was signed into law by President Biden on Jan. 5, institutes significant changes to parts of the retirement benefits program.
The new law repeals a pair of decades-old provisions, the Windfall Elimination Provision and the Government Pension Offset, which reduced monthly benefits for public employees who were receiving other pensions not covered by the Social Security Administration.
The number of people who these laws apply to has been declining nationally, according to a bill analysis.
In turn, certain public employees can expect their Social Security benefits to increase by $360 a month, on average, by December of 2025, according to the analysis. Some retired workers will also receive lump-sum back pay for 2024.
These changes are predicted to increase overall spending by the Social Security Administration. The Congressional Budget Office estimates it could cost $196 billion over the next 10 years. It’s also likely that some Supplemental Nutrition Assistance Program (SNAP) benefits will be reduced in response to higher Social Security payments.
Around 2.8 million beneficiaries who retired from serving as law enforcement, firefighters, postal workers or public school teachers are expected to benefit from the Social Security increases.
READ MORE: Millions of public workers are set to get higher Social Security benefits. Here's why
University of South Florida economics instructor Michael Snipes said that the enhanced payments will be welcomed by Floridians on a fixed income, where inflation has outpaced the national average in recent years. But they may not go as far as they hope it will.
“If you’re on a fixed income, you’re going to get hit harder by inflation than somebody who has…a regular paycheck coming in. So, any…additional resources or transfer payments that we can give to them — that’s definitely going to help out,” he said.
In the greater Tampa Bay region, a spokesperson for the local elder affairs office said that many retirees who rely on Social Security have been under additional financial strain after Hurricanes Helene and Milton, which could quickly eat into payment increases.
“While a cost-of-living adjustment is always welcomed, the increase can get easily absorbed through unexpected expenses, such as those associated with hurricanes,” Senior Connections Center CEO Charlotte McHenry wrote in an emailed response.
Snipes said inflation activity in 2025 will also factor into the real impact — whether people can afford more goods and services — of the Social Security increases.
“If our income goes up 5%, say, and prices go up 5% — well, we’re still able to afford the same amount of stuff,” he said.
While inflation is cooling nationally, Snipes said economic uncertainty remains in 2025.
The incoming Trump administration has proposed universal tariffs, which threatens to increase prices in the U.S. The Federal Reserve also recently hinted at fewer interest rate cuts this year. And in the past, Trump has suggested an overhaul of the Social Security Administration.
Snipes said all of these political and economic factors could undercut long-term impacts of the Social Security increases.
“So, while it’s a good thing, I think, in the short run…it’s really going to be interesting to see just how long…this is going to take hold, whether it’s going to be something that’s removed here in just a couple weeks [and] what’s going to happen with inflation over the next six months.”
Despite the uncertainty, public sector trade unions are celebrating the new law as a landmark win for retired service workers.
“This historic victory will improve the lives of educators, first responders, postal workers and others who dedicate their lives to public service in their communities,” National Education Association president Becky Pringle wrote in a press release.
The American Postal Workers Union also celebrated the bipartisan legislation, hailing it as “a testament to what we can achieve when we fight together,” and calling on the Social Security Administration for swift implementation of the increases.
Officials said it will take time to process the changes, and it could be a few months before beneficiaries receive their increased checks.
Gabriella Paul covers the stories of people living paycheck to paycheck in the greater Tampa Bay region for WUSF. She's also a Report for America corps member. Here’s how you can share your story with her.
