Goodbye to higher Social Security Benefits: the blocked bill that could have helped millions

While many members of the Republican Party have voiced support for preserving or expanding Social Security benefits, Republican lawmakers in Congress recently blocked a bill that would have allowed millions of Americans to receive higher monthly benefits. Experts weighed in on what might be the possible reasons behind such a decision.

Details of the proposed bill

The bill, sponsored by Representatives Garrett Graves and Abigail Spanberger, would have repealed two rules currently reducing benefits for some retirees. Despite earlier strong bipartisan support for the proposal, which Graves and Spanberger had rounded up the required 218 signatures to advance it in the House, the Freedom Caucus stood in the way.

For those looking to better understand the most common mistakes people make when claiming retirement benefits, check out the most frequent errors when claiming Social Security benefits.

Freedom Caucus blocks the bill

Freedom Caucus Chairman Andy Harris, R-Md., was granted unanimous consent to “table the Social Security bill”, a procedural move that shelved the initiative. To revive it, lawmakers would have to use a voting process under special discharge rules. Another option is to present new legislation with similar guidelines that will help individuals who are affected by WEP and GPO.

Impact of WEP and GPO on Social Security Benefits

These provisions reduce the Social Security benefits received, depending on the amount a beneficiary receives from a pension, for those who earned the pension through employment that is not covered under Social Security.

The bill would cost an estimated $196 billion over 10 years, if passed, at a time when the Social Security Administration is already running into a funding shortage that could cut benefits as early as 2035. “I believe the Republicans are blocking this bill to delay changes in rules until they gain control over either the House or Senate,” said Kevin Thompson, finance expert and chief executive of 9i Capital Group, to. “While the cost is cited as the primary driver, it may be an attempt at political control by other means.”

While benefit cuts could affect many retirees, some individuals are seeing larger Social Security checks than others. You can learn more about which U.S. states have the highest average Social Security checks for retired workers here.

Effects on retired public service workers

At a time when many Social Security recipients depend on their allotted benefits for subsistence, the WEP and GPO mean losing thousands of dollars in annual benefits-especially for retired public service workers like former police officers, teachers, and nurses.

“The purpose of the GPO and WEP is to prevent certain beneficiaries from receiving more benefits than they are entitled to. They do not reduce benefits for those who are fully eligible for both Social Security and pension benefits. If someone hasn’t contributed to Social Security, they shouldn’t expect to receive full Social Security and pension benefits simultaneously,” Thompson explained.

Alex Beene, a financial literacy teacher at the University of Tennessee at Martin said the vote to table the bill did not indicate whether lawmakers simply opposed the proposal or preferred to bring forward a new version in the future.

Hope for updated legislation

“The bill in question would have expanded certain Social Security benefits to previously excluded groups,” Beene said. “It was a popular proposal, enjoying bipartisan support, which only serves to further puzzle why it was blocked.” “The hope is this temporary pause will result in updated versions of the bill in the future. The additional benefits would greatly assist recipients, especially during times of high inflation.”