Social Security
Good news for public sector workers: Senate to approve relief for up to $200 Billion in Social Security giveaway
The Social Security Fairness Act aims to boost retirement benefits for public workers. The Senate has begun the process to push for a vote on the bill.
The Senate is likely to push for a vote on the Social Security Fairness Act before the year-end deadline, and it could take place this week.
Senate Majority Leader Chuck Schumer says he is urging his colleagues to support the measure. The legislation was passed in the lower House of Congress by a wide margin in September.
The Social Security Fairness aims to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that both lessen Social Security benefits for certain public workers when they retire.
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Good news for public sector workers: Senate to approve relief for up to $200 Billion in Social Security giveaway
The WEP and GPO affects almost three million workers in the public sector, including public school teachers, police officers, and firefighters. These measures reduce the amount these employees can receive from Social Security if they also receive income from pensions.
The Windfall Elimination Provision reduces Social Security benefits for people who receive non-covered pension and may have taken on work for which they made Social Security contributions. A non-covered pension is one paid by an employer that doesn’t withhold Social Security taxes from the worker’s salary, typically, state and local governments.
Such workers may not receive the money they had paid toward retirement. The benefit reduction could be as high as half the pension amount.
Meanwhile, the Government Pension Offset cuts down the survivor or widow/widower benefits for non-covered pensions. The GPO reduces the Social Security benefit by two-thirds of the monthly non-covered pension received.
The cost of the benefit expansion
With the repeal of these two programs, the payouts from the Social Security Fairness Act could further burden the Social Security Trust funds, which are already expected to pay out lower benefits starting in 2035.
The Congressional Budget Office estimates the Fairness Act would increase federal deficits by $195 billion over a decade.
Some Republicans have voiced opposition to the bill, with Kentucky Sen. Rand Paul saying it would come at great cost to the country. Other GOP leaders have encouraged Schumer to push for a vote, with Republican Sen. Bill Cassidy predicting the measure’s passage.
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