Millions of retired workers in the U.S. could soon receive increased Social Security benefits under a proposed bipartisan bill. The Social Security Administration (SSA) has announced that a new increase in benefits is on the horizon for about three million beneficiaries, thanks to bipartisan legislation making progress in Congress. This news marks a significant development for retirees, especially those who have long awaited changes to unfair rules that have limited their benefits.
Let’s cut into the details of this proposed legislation and what it means for Social Security beneficiaries.
Contents
Legislation
The bipartisan legislation is driven by strong support from both Democrats and Republicans. Democratic Representative Abigail Spanberger and Republican Representative Garrett Graves led the charge by gathering 218 signatures—47 from Republicans and 171 from Democrats. This allowed the bill to move forward through a discharge petition, a legislative mechanism that bypasses committee roadblocks and takes the bill straight to the floor for a vote.
Once seven legislative days have passed, Spanberger and Graves can request a vote on the bill. In a joint statement, they emphasized the importance of this milestone, noting that it’s the first time since 2015 that a bill has advanced through this method. Their goal? To right a longstanding wrong in the Social Security system.
Fairness Act
The main focus of the legislation is the Social Security Fairness Act, which targets two key regulations: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). These rules reduce Social Security payments for retirees who receive pensions from certain public-sector jobs that didn’t require Social Security payroll taxes. While these rules were originally put in place to prevent “double-dipping,” they have ended up reducing benefits for millions of workers.
The Windfall Elimination Provision (WEP) affects about two million retirees who have earned pensions from public jobs where they didn’t pay Social Security taxes but have also worked in jobs that did. The WEP can reduce their benefits by up to $557 per month. The Government Pension Offset (GPO) affects around 800,000 retirees by reducing spousal or survivor benefits, often impacting teachers, police officers, and firefighters.
Impact
If this bill becomes law, the GPO and WEP would be eliminated, meaning retirees will finally get the full benefits they’ve earned from both Social Security and their pensions. Many public-sector retirees have spent decades fighting for these changes, and this legislation brings hope that their hard work will be recognized fairly.
According to Spanberger and Graves, this issue affects retirees in all 50 states, including those from Virginia and Louisiana, where large numbers of public-sector workers are impacted by the GPO and WEP. Eliminating these provisions is seen as a matter of fairness, as these retirees deserve the benefits they have earned over their careers.
Financial Considerations
Of course, increasing Social Security benefits for millions of retirees will come at a cost. The Congressional Budget Office (CBO) estimates that the bill could cost the Social Security Administration nearly $196 billion over a 10-year period, starting from the fiscal year 2025. While this is a significant expense, lawmakers supporting the bill argue that it’s worth it to address the decades-long injustice faced by many public-sector workers.
Looking Forward
The passage of this bill would be a major victory for retirees affected by the WEP and GPO. However, it’s important to remember that the legislation still needs to clear several hurdles before becoming law. If it passes, it will mark a historic shift in how Social Security benefits are calculated for public-sector retirees.
The road to change has been long, but there’s finally a real possibility of reform. Retirees and their families should keep an eye on Congress in the coming months to see if this legislation becomes a reality.
The elimination of the WEP and GPO could bring much-needed relief to millions of retired workers, ensuring they receive the full benefits they’ve earned over a lifetime of service.
FAQs
What is the Social Security Fairness Act?
It’s a bill to eliminate WEP and GPO regulations, increasing benefits for retirees.
How many retirees are affected by the WEP?
Approximately two million retirees face reduced benefits due to the WEP.
What does the GPO do?
The GPO reduces spousal or survivor Social Security benefits for public-sector retirees.
When could the bill pass?
If successful, the bill could take effect by the fiscal year 2025.
How much could the bill cost?
The Congressional Budget Office estimates it would cost $196 billion over 10 years.
