A new law has been introduced and passed in the House of Representatives, which could assist millions of Social Security claimants receive a greater monthly benefit. This is the Social Security Fairness Act, which received bipartisan support and is now being considered by the Senate.
The Social Security Fairness Act
This bill, proposed by Virginia Democrat Abigail Spanberger and Louisiana Republican Garret Graves, seeks to eliminate two federal regulations that now limit Social Security payments for around 2.8 million Americans working in federal, state, and local positions.
According to a joint statement, “By passing the Social Security Fairness Act, a bipartisan majority of the U.S. House of Representatives showed up for the millions of Americans — police officers, teachers, firefighters, and other local and state public servants — who worked a second job to make ends meet or began a second career to support their families after retiring from public service.”
A bipartisan majority of the United States House of Representatives voted to provide a safe retirement to the hundreds of thousands of wives, widows, and widowers who are denied their spouse’s benefits solely because they selected military jobs.”
Which provisions did it repeal? The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
The SSA defines the WEP as “a formula used to adjust Social Security worker benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security-covered earnings.”
A non-covered pension is one paid by an employer who does not deduct Social Security taxes from your paycheck, such as state and local governments or non-U.S. employers.” This provision now impacts around 2 million people.
The GPO “adjusts Social Security spousal or widow(er) benefits for people who receive “non-covered pensions.”” This rule affects around 800,000 retirees.
By repealing the bill it would allow to:
- Repeal provisions that reduce Social Security benefits for individuals who receive other benefits, such as a pension from a state or local government.
- Eliminate the government pension offset, which can reduce Social Security benefits for spouses, widows, and widowers who also receive government pensions of their own.
- Eliminate the windfall elimination provision, which in some instances reduces Social Security benefits for individuals who also receive a pension or disability benefit from an employer that did not withhold Social Security taxes.
All of these ideas would assist average Americans make ends meet by increasing benefits for people who are already subject to the WEP and GPO. The bad news is that, according to the Congressional Budget Office, implementing this law would increase federal deficits by $195 billion over ten years, contributing to the Social Security shortfall even more.
Regardless, Graves explains, “This has been 40 years of treating individuals differently and discriminating against a specific group of workers. They are neither overpaid, nor are they underworked,” he stated.
Despite the House victory, the plan still has a long way to go because it has not been put to a vote in the Senate and the president must sign it into law, but efforts are being made to ensure that it passes with as little disruption as possible.
Spanberger and Graves, together with Senate sponsors Democrat Sherrod Brown and Republican Susan Collins, lobbied Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell to bring the bill up for a vote.
Their heartfelt plea stated that Americans affected by the provisions “are being punished for supporting and protecting our neighbors and families, educating our children, providing healthcare to our Veterans, delivering our mail, and more.”
Also See:- Payment of multiple accumulated Social Security checks – The list of retirees who can collect them