Congress Passes Bill to Increase Social Security Benefits for Public Workers
The Senate has passed the Social Security Fairness Act, which will eliminate provisions that reduce Social Security benefits for certain public workers. The bill, which passed 76-20, aims to eliminate the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that have been in place for decades. These provisions reduce Social Security benefits for individuals who receive pension or disability benefits from employment where they did not pay Social Security payroll taxes, and for spouses, widows, and widowers who also receive their own government pension income.
The WEP and GPO provisions affect an estimated 3 million individuals and have been a long-standing issue for organizations representing public workers, including teachers, firefighters, police, and other government employees. “You shouldn’t penalize people for income outside of a system when they’ve paid into it and earn that benefit,” said John Hatton, vice president of policy and programs at the National Active and Retired Federal Employees Association.
The bill garnered overwhelming bipartisan support, building on its passage in the House with a 327 majority in November. However, some senators voiced concerns about the additional costs of the legislation, which is estimated to cost $196 billion over 10 years, according to the Congressional Budget Office. This comes as the Social Security trust funds face looming depletion dates, with one trust fund projected to be depleted in nine years.
Senator Rand Paul proposed an amendment to offset the costs by gradually raising the retirement age to 70 and adjusting for life expectancy, which was defeated. The bill is expected to face further negotiations in the coming months to address concerns over its financial impact on the program.