The Social Security Fairness Act is at risk of failing if the Senate doesn’t vote on it soon. This bill, aimed at helping public sector workers like teachers, firefighters, and police officers, was passed by the U.S. House in November but hasn’t been voted on by the Senate. If it doesn’t pass by year-end, it will expire.
This Act seeks to eliminate two rules: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which reduce Social Security benefits for retirees who also receive pensions. Nearly 3 million Americans are affected by these rules.
How WEP and GPO Hurt Public Sector Workers?
- WEP: Cuts Social Security for those with “non-covered” pensions (jobs without Social Security taxes). This reduction can be half the pension amount.
- GPO: Reduces spousal or survivor benefits by two-thirds of the pension amount. If two-thirds of your pension is more than your Social Security benefit, your benefit might drop to zero.
These rules were meant to prevent overpayment but are seen as unfair by workers who paid into Social Security during private-sector jobs. For example, retired police officer Don Hillbish saw his monthly benefit drop from $1,100 to $350 due to these rules.
Why Isn’t the Senate Voting?
The Act has 62 bipartisan sponsors in the Senate, enough to avoid a filibuster. However, some senators worry about its costs. Reports suggest the Act would cost $196 billion over 10 years, speed up Social Security’s insolvency by six months, and increase automatic benefit cuts later.
Senator Angus King said some Republicans might have withdrawn support, slowing progress. Others believe the delay is a tactic to kill the bill.
Despite this, some hope remains. The Act could be attached to a must-pass bill like the National Defense Reauthorization Act. A spokesperson for Senate Majority Leader Chuck Schumer said it is a “high priority.”
What Happens If the Bill Fails?
If the Act doesn’t pass, Congress will need to start over. This could allow time to draft a bill that reforms rather than repeals WEP and GPO. Reforming these rules might help Social Security’s financial health while being fairer to retirees.
Are WEP and GPO Fair?
Supporters say these rules prevent people from unfairly getting more benefits. For example, someone with earnings outside the Social Security system might seem like a low earner and receive higher returns than those who paid into the system their entire lives.
However, affected retirees argue that the rules are unfair. They believe benefits earned during private-sector jobs should not be reduced due to their pensions.
Is There a Better Solution?
Many experts suggest reforming WEP and GPO instead of eliminating them. A “proportional formula” is one proposed solution. This would calculate Social Security benefits based on how much someone contributed while working in jobs covered by Social Security.
Groups like the Bipartisan Policy Center and the Heritage Foundation support reforms, stating they would balance fairness with Social Security’s solvency.
Conclusion
The Social Security Fairness Act is a crucial step toward justice for public sector retirees. However, without quick Senate action, it might fail, leaving millions to start the fight again. Whether through reform or repeal, the call for fairness in Social Security remains strong.
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