The Social Security Fairness Act was passed by the House of Representatives on Tuesday, now it will go to the Senate for signing into law and then for the president’s signature. If this bill passes, all the affected individuals who are taking reduced social security benefits due to GPO and WEP will be eligible for full benefit payments.
Social Security Fairness Act
The Social Security Fairness Act was passed in the House of Representatives with a bipartisan vote of 327 to 75. The main purpose of this bill is to eliminate the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), which contribute to the Social Security reduction for certain people.
Now, this bill will go to the Senate where it has 62 co-sponsors for approval and then it will be sent to the president’s desk to be signed into law. The GPO and WEP will be repealed under the Social Security Fairness Act and it will allow individuals to receive their social security without any reduction.
This bill will be very beneficial for public sector employees, such as teachers, police officers, and firefighters if it passes. The other details such as the benefits of this bill, associated challenges, and what can be the future of this bill are discussed below.
Government Pension Offset (GPO) and Windfall Elimination Provision (WEP)
The two provisions known as Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) greatly reduce the social security benefits for many individuals. Both of these are discussed below to check their effect on social security.
Government Pension Offset (GPO)
- The Government Pension Offset (GPO) affects those pensioners who received it from a federal, state, or local government job that did not withhold Social Security taxes. The GPO reduces the social security benefit of spouses, widows, and widowers and almost 800,000 retirees were affected by GPO according to the Congressional Research Service.
Windfall Elimination Provision (WEP)
- This provision reduces the amount of social security for those who worked in jobs where they did not pay Social Security payroll taxes and they receive disability or pension from those employees. According to the Congressional Research Service, this provision has affected almost 2.1 million individuals as of December 2023.
Who can benefit from the Social Security Fairness Act?
The Social Security Fairness Act will benefit those impacted by the provisions that reduce their social security benefits payments. If it passes, teachers, police officers, firefighters, and other public servants who do not work in social security-covered jobs will also benefit from this act.
Others who can take benefit are Spouses, widows, and widowers of public sector employees are also significantly affected by the GPO and after approval of this act, these people will receive full Social Security benefits for which they are eligible. In short, this bill will be favorable for almost 2.1 million affected individuals by WEP and 800,000 by GPO.
Social Security Fairness Act Challenges
The Social Security Fairness Act is facing many challenges and opposition which can affect its implementation. These challenges are discussed below.
Financial Impact of Repealing GPO and WEP
- The Congressional Budget Office has estimated that the repeal of GPO and WEP can add $196 billion to social security funds over the next decade. The Social Security funds are already under financial strain and an increase in its cost raised concern to maintain it.
Political Opposition Challenge
- This bill is also facing political opposition because some lawmakers are not supporting the bill due to the financial pressure of social security funds. Such as Larson’s vote against the Social Security Fairness Act on Tuesday and he said it would impact I could not vote on this bill because they are unpaid and they put at risk the hard-earned benefits of Americans.
These are some challenges and oppositions that are facing this bill’s legacy. But there are also many supporters of this bill so the chances of its implementation can be more.
What will be the future of the Social Security Fairness Act?
Although the Social Security Fairness Act is facing many challenges and oppositions, it is greatly supported by many advocacy groups, including the National Active and Retired Federal Employees Association (NARFE) and other organizations representing public sector employees. The ongoing debate on social security funds stability and its solution can take part in the bill’s passing process.
As this bill is now headed to the Senate interested individuals are worried whether it will be passed or not. If the Senate passes this bill then it will go for presidential signatures. The affected individuals of GPO and WEP will be eligible to receive full Social Security payments after the repeal of both provisions.
If this bill does not pass in the Senate, then the GPO and WEP will remain the same and many public sector employers will receive affected social security benefits. In short, the future of this bill depends on many factors such as Senate approval, the president’s signing, financial considerations, ongoing challenges, etc. The solution and outcome of these challenges will determine the future of this act.
