Social Security benefits to increase for public workers

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and some good news for 3 million public workers.

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.

01:53Thanks for watching.

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