Three million public workers will see an increase in their social security benefits.
Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
There’s a positive vibe as Wall Street kicks off a new trading week. Tech stocks are leading the way after strong results from contract manufacturer Foxconn. Investors are also feeling hopeful about tariffs. A report in the Washington Post suggests President-elect Trump may use a more targeted approach that would put less pressure on sales.
Personal finance author and radio host Dave Ramsey offers advice. -lead
Dave Ramsey warns on Social Security, Medicare growing problems
In other news, 3 million Americans will see a boost to their Social Security benefits thanks to bipartisan action by Congress and the outgoing Biden administration.
Under the Social Security Fairness Act, which President Biden signed into law at the start of the week, public service workers such as teachers, firefighters, and police officers will no longer see their Social Security benefits capped because they have a public sector pension.
President Biden describes this as a big deal for middle-class households. ”By signing this bill, we’re extending Social Security benefits for millions of teachers, nurses, and other public employees and their spouses and survivors. That means an estimated average of $360 per month increase.”
This new law undoes two previous 40-year old rules. Under the old rules -known as the Windfall Elimination Provision and the Government Pension Offset – Social Security benefits were reduced for public sector workers exempt from paying Social Security payroll taxes. In addition, payments to spouses, widows, and widowers were reduced if they drew from government pensions as well.
The law is retroactive to cover all of 2024 and comes with a lump sum payment to catch up.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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