Bill To Boost Social Security For Public Workers Heads To A Vote: Know Details

Public sector workers like teachers, police officers, and firefighters may soon see changes to their Social Security benefits.

A new bill, the Social Security Fairness Act, is gaining momentum and could significantly boost benefits by repealing two controversial provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Together, these provisions reduce the Social Security payments of retirees who also receive pension income from government jobs that didn’t pay into Social Security. If passed, this bill could be a game-changer for nearly 3 million Americans.

What Are WEP and GPO?

The Windfall Elimination Provision (WEP) reduces Social Security benefits for those who receive pensions from “non-covered” jobs, typically in the public sector, where Social Security taxes weren’t withheld. This reduction can be substantial—up to 50% of the pension amount.

The Government Pension Offset (GPO), on the other hand, impacts spousal or survivor benefits. It reduces these benefits by two-thirds of a retiree’s pension amount.

For example, if a public worker receives $1,200 in pension payments, their spousal or survivor benefit could be reduced by $800. In some cases, this could eliminate the benefit altogether.

These provisions were introduced to prevent “overpayment” by Social Security for individuals with income from both non-covered government jobs and Social Security-covered jobs.

Policy experts argued that without these provisions, individuals with high-paying government pensions could receive benefits similar to those meant for lower-income workers.

Why Are WEP and GPO Considered Unfair?

Critics argue that WEP and GPO penalize individuals who have earned Social Security credits through side jobs in the private sector.

Public servants who worked in fire departments, schools, or government offices may have held second jobs that contributed to Social Security, but under these provisions, they don’t receive the full benefits they’ve earned.

Mary Johnson, a policy analyst, notes that many individuals have paid into both systems. “They should not be penalized for having worked as firefighters, teachers, or any other government job. Hardworking people deserve to receive the full amount of their Social Security benefits,” she says.

For people like Mike Barker, a retired police officer, these reductions are life-altering. Though Barker has worked in multiple jobs paying into Social Security, his benefits are drastically reduced because of WEP.

Instead of the $700 monthly benefit he would be entitled to, WEP reduces it to just $168. This amount barely covers his Medicare Part B premium, forcing him to continue working at age 67.

The Impact of Reduced Social Security

The financial strain caused by WEP and GPO has forced many retirees to work well into their later years.

Eileen Kleinman, a school teacher from Cincinnati, Ohio, feels it’s unfair that her work in public education could lead to a significant reduction in her Social Security benefits.

Many public workers like her rely on Social Security to complement their pensions in retirement, but WEP and GPO leave them with less than expected.

Could Repealing WEP and GPO Be the Solution?

Repealing WEP and GPO is expected to cost around $196 billion over the next decade, according to the Congressional Budget Office (CBO).

While this would provide relief to affected retirees, it raises concerns about the overall solvency of Social Security. According to the Social Security and Medicare Boards of Trustees, the system is projected to face cuts by 2033, and repealing these provisions could accelerate that timeline.

Some experts, like those at the Center on Budget and Policy Priorities, argue for updating WEP and GPO rather than eliminating them. A proportional formula could be a fairer approach.

This would calculate benefits based on the proportion of earnings from Social Security-covered jobs. For example, if 75% of a person’s income came from jobs that contributed to Social Security, they would receive 75% of the full Social Security benefit.

Such an approach could address fairness without significantly harming Social Security’s long-term solvency.

What Are the Chances of the Social Security Fairness Act Passing?

The Social Security Fairness Act has secured enough support for a guaranteed House vote in the coming weeks. While many are hopeful, others are cautious given the gridlock in Congress. Rep.

Garret Graves (R-LA), one of the bill’s sponsors, believes there is strong bipartisan support, but it remains uncertain whether the bill will pass in both the House and Senate.

For individuals like Eileen Kleinman and Mike Barker, the stakes are high. Kleinman hopes for a favorable resolution before she retires, as she continues to work and contribute to both Social Security and her pension.

The Social Security Fairness Act offers hope for nearly 3 million public sector retirees who have been adversely affected by the WEP and GPO provisions. If passed, it could restore Social Security benefits that these individuals have earned through years of hard work.

However, the bill’s success is not guaranteed, and concerns about Social Security’s solvency continue to fuel debate. As this bill heads to a vote, public workers and retirees will be watching closely, hoping for a more equitable outcome for their retirement benefits.

FAQs