The Social Security Fairness Act just passed the House and is headed to the Senate for consideration. The bill aims to change how benefits are calculated for some retirees who collect a pension from jobs not covered by Social Security. Some occupations that are affected are teachers, police officers, firefighters, U.S. postal workers, and other government employees. It also seeks to eliminate a provision that reduces Social Security benefits for deceased workers’ surviving spouses and family members.
Understanding the Social Security Fairness Act
Currently, two provisions, the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), reduce Social Security payments for individuals who also receive a government pension from employment not covered by Social Security. According to CNBC, WEP affects a recipient’s own Social Security retirement benefits, while the GPO reduces spousal and survivor benefits. According to the Congressional Research Service, these provisions impact around 2.8 million Americans and lower their expected retirement income.
The Social Security Fairness Act seeks to repeal both the WEP and GPO. If it passes, affected individuals could receive full Social Security benefits and your government pension. This change addresses the perceived unfairness that arises when public servants receive reduced benefits despite contributing to Social Security through other employment.
The bill’s lead sponsors, Reps Abigail Spanberger, D-Va., and Garret Graves, R-LA., stated, “For more than 40 years, the Social Security trust funds have been artificially propped up by stolen benefits that millions of Americans paid for and that their families deserve. The time to put an end to this theft is now.”
Repealing these provisions would increase benefits for many retirees, providing greater financial security. However, it’s important to note that the legislation could have significant budgetary implications. According to AP News, the Congressional Budget Office estimates that eliminating the WEP and GPO would add an estimated $195 billion to the deficit over the next decade and could potentially impact the overall solvency of the Social Security system.
The bill has gained bipartisan support and passed in the House of Representatives. The next step is for the Senate to vote on it. It has 63 sponsors in the Senate, so it’s highly likely it’ll get the 60 votes needed if a vote is held this session. However, if it doesn’t pass by January 3, the bill will expire, and the whole process will need to start over.
