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