A recent bipartisan effort in the U.S. House of Representatives has resulted in the passage of the Social Security Fairness Act, a bill that aims to enhance benefits for workers who also receive pensions from other sources. The measure is now set to be considered by the Senate.
The Social Security Fairness Act seeks to eliminate provisions that currently reduce Social Security benefits for individuals entitled to other pensions, such as those from state or local government jobs. Specifically, the bill targets the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP can diminish benefits for individuals who have worked for employers that did not withhold Social Security taxes, while the GPO reduces benefits for spouses, widows, and widowers of employees who receive their own government pensions.
If enacted, the legislation would reinstate full Social Security benefits for affected individuals, including those in education who may work part-time in jobs covered by Social Security. The co-sponsors of the bill, Republican Rep. Garrett Graves and Democratic Rep. Abigail Spanberger, emphasized that many educators who contribute to Social Security are currently penalized under the existing provisions.
The impact of the WEP and GPO is significant, with approximately 2 million beneficiaries affected by WEP and nearly 800,000 retirees impacted by GPO, according to the Congressional Research Service.
However, the bill has faced opposition from the conservative House Freedom Caucus, which sought to stall its progression due to concerns over a projected $196 billion increase in the federal deficit over the next decade. The legislative process for this bill was notably expedited by the co-sponsors’ collection of 218 signatures to bypass committee challenges, ultimately leading to a substantial vote of support from 327 House members.
With 62 co-sponsors in the Senate, the bill’s advocates urged Senate leaders to move quickly and bring the proposed legislation to a vote. If the Senate approves the bill, it will then be sent to President Joe Biden for his signature, with the changes anticipated to take effect for benefits payable after December 2023.
Overall, the Social Security Fairness Act represents a critical bipartisan initiative aimed at securing fair treatment for workers and retirees who have contributed to various pension systems, ultimately striving for enhanced retirement security for Americans. The strong support in both legislative chambers reflects a growing recognition of the importance of equitable benefits for all workers, regardless of their career paths.