Social Security Fairness Act to Raise Benefits for Millions of Public Service Retirees

Social Security Fairness Act to Raise Benefits for Millions of Public Service Retirees!

Lawmakers are one step closer to passing a bill that could increase Social Security benefits for millions of retirees. The proposed Social Security Fairness Act is aimed at reversing two key rules—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules have long affected retired public service employees, including police officers, firefighters, and teachers, by reducing their Social Security benefits.

Recently, lawmakers reached the 218 signatures needed to advance the bill. If passed, the bill could help approximately 3 million Americans whose benefits are currently affected by these rules. This includes pensioners who worked in “non-covered” employment, meaning their employers did not withhold Social Security taxes from their paychecks.

These retirees often face financial struggles because the WEP and GPO significantly reduce their Social Security payments. The WEP affects workers whose jobs did not require them to pay into Social Security, even if they contributed to a pension. The GPO, on the other hand, reduces the Social Security benefits of spouses and widows who also receive a pension. Over 2 million workers are impacted by WEP, and around 745,000 individuals are affected by the GPO.

These rules have impacted many people in important public service jobs for decades. Representative Garret Graves (R-LA) expressed frustration over the injustice, stating that these workers, who are pillars of the community, are unfairly treated. He, along with other lawmakers, has been pushing for this change on a bipartisan basis.

If a retiree’s pension comes from what Social Security considers “covered” employment, their Social Security benefits are not affected. Covered employment means that Social Security payroll taxes were deducted from their paycheck.

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However, for those who receive pensions from non-covered jobs, the situation is different. If they worked long enough in covered jobs to qualify for Social Security benefits, the WEP can still reduce their payments.

The bill has a strong chance of passing in the House of Representatives, but experts are unsure if it will succeed in the Senate, where it has fewer supporters. While many hope this bill will bring relief to those affected by WEP and GPO, some experts remain skeptical.

Kevin Thompson, a finance expert, explained that while the WEP was originally introduced to prevent people from receiving more benefits than they paid into the system, this balance has come at the expense of many hardworking individuals. He expressed doubt that the bill would pass, as similar efforts have failed in the past.

Passing the bill could be costly financially. The Congressional Budget Office estimates that the changes could cost around $196 billion over the next ten years. The Social Security Administration is already facing a budget shortfall, with potential benefit reductions as soon as 2033 if no further funding is secured.

Despite the financial challenges, many believe that passing the Social Security Fairness Act could be life-changing for retirees who see their benefits slashed each month due to WEP and GPO. Some pensioners lose almost all their Social Security payments because of these rules.

Alex Beene, a financial literacy instructor, noted that allowing these retirees to access the full amount of Social Security they are entitled to could make a huge difference in their lives during retirement.

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For now, all eyes are on Congress as lawmakers prepare to vote on this crucial bill. If it passes, it could bring long-awaited relief to millions of Americans who have spent years navigating financial hardship due to these outdated Social Security rules.

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