Millions of Americans to see increase in Social Security benefits

Three million public workers will see an increase in their social security benefits.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching

00:03on the street today.

00:04There's a positive vibe as Wall Street kicks off a new trading week.

00:08Tech stocks are leading the way after strong results from contract manufacturer Foxconn.

00:13Investors are also feeling hopeful about tariffs.

00:16A report in the Washington Post suggests President-elect Trump may use a more targeted approach that

00:22would put less pressure on sales.

00:26In other news, three million Americans will see a boost to their social security benefits

00:31thanks to bipartisan action by Congress and the outgoing Biden administration.

00:37Under the Social Security Fairness Act, which President Biden signed into law at the start

00:42of the week, public service workers such as teachers, firefighters and police officers

00:47will no longer see their social security benefits capped because they have a public sector pension.

00:53President Biden describes this as a big deal for middle-class households, quote, by signing

00:59this bill, we're extending social security benefits for millions of teachers, nurses

01:03and other public employees and their spouses and survivors.

01:08That means an estimated average of $360 per month increase.

01:13This new law undoes two previous 40-year-old rules.

01:18Under the old rules known as the Windfall Elimination Provision and the Government Pension

01:23Offset, social security benefits were reduced for public sector workers exempt from paying

01:28social security payroll taxes.

01:31In addition, payments to spouses, widows and widowers were reduced if they drew from government

01:37pensions as well.

01:39The law is retroactive to cover all of 2024 and comes with a lump-sum payment to cash

01:44out.

01:45That'll do it for your daily briefing.

01:47From the New York Stock Exchange, I'm Conway Gittens with The Street.