The U.S. Senate approved a bipartisan bill on Saturday morning aimed at enhancing Social Security benefits for approximately 3 million public sector workers, including firemen, policemen, and teachers. In a roll call vote, 76 senators supported the measure while 20 opposed it.
If President Joe Biden signs the legislation into law, the new benefits will take effect for all payments made after December 2023. The Social Security Fairness Act, which received significant bipartisan backing in the House last November, aims to eliminate two policies that have previously decreased Social Security benefits for public service employees.
The first policy being revoked is the Windfall Elimination Provision (WEP), which reduces benefits for retirees or disabled workers with less than 30 years of earnings in Social Security-defining jobs when they also receive pensions based on non-covered employment. The second policy, the Government Pension Offset (GPO), reduces spousal or surviving spouse benefits for individuals who hold pensions for non-covered jobs.
To qualify for retirement benefits under Social Security, individuals must have contributed to the program for at least 10 years. They may also be entitled to spousal or survivor benefits if their spouse has made those contributions.
According to the Congressional Research Service, two groups most likely affected by these provisions include about 28% of state and local government employees under alternative retirement systems and most permanent federal civilian employees hired before 1984.
The bill’s co-sponsors, outgoing Democratic Sen. Sherrod Brown of Ohio and Republican Sen. Susan Collins of Maine, have emphasized that the current system unfairly penalizes public sector workers who dedicate their careers to serving their communities. After the vote, Collins recounted an instance from Maine involving a retired teacher whose survivor benefits were slashed due to the GPO, ultimately compelling her to re-enter the workforce at age 72.
While many celebrate this legislative progress, critics express concerns regarding its financial implications, arguing that it would exacerbate Social Security’s insolvency challenges. The Congressional Budget Office estimates the bill could cost nearly $200 billion over a decade and potentially advance the trust fund’s insolvency date by six months.
Overall, this legislative move represents a significant step toward addressing longstanding inequities within the Social Security system, potentially improving the financial security of countless public sector workers who have dedicated their lives to community service. As the discussions around Social Security continue, hope remains that constructive reforms can ensure long-term sustainability for all beneficiaries.