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HomeLocalCongress Revamps Social Security for Select Public Sector Employees

Congress Revamps Social Security for Select Public Sector Employees

 

 

Congress makes revisions to Social Security for certain public workers


WASHINGTON – On early Saturday, Congress approved a measure set to boost Social Security benefits for public sector employees.

 

The Social Security Fairness Act aims to abolish the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which currently diminish Social Security payments for specific retirees who also receive pension funds.

WEP and GPO together impact nearly 3 million U.S. citizens, including police officers, firefighters, postal employees, and educators.

The bill was passed in the Senate with a 70-26 vote at 12:15 a.m., following its approval by the House in November. It is now set to be signed by the president.

 

Senate Majority Leader Chuck Schumer, D-N.Y., remarked on Wednesday, “This is a significant benefit for our retired firefighters, police officers, postal workers, teachers, and others who have contributed to Social Security but received penalties due to their public service roles. That’s simply unfair. It contradicts the American principle of hard work, contributing, and earning a well-deserved retirement.”

Conversely, some senators opposing the measure claimed that it would provide undue advantages to certain workers while placing additional burdens on other Social Security recipients and threatening the overall stability of the Social Security fund.

 

Sen. Chuck Grassley, R-Iowa, emphasized on the Senate floor Friday, “Let’s be clear about this: this bill would increase the inequality in how Social Security benefits are determined.”

 

Sen. Thom Tillis, R-N.C., warned that the Social Security trust fund is projected to become insolvent in less than a decade and indicated that this legislation could accelerate that process.

 

“This policy addresses an issue concerning a small percentage of individuals with pensions,” he stated. “While it is something that necessitates attention, this is not the correct solution.”

 

The projected cost of the bill is $196 billion over the next decade, as per Congressional Budget Office forecasts.

 

The Windfall Elimination Provision (WEP) decreases Social Security for those who receive “non-covered” pensions, typically from public sector employment, which did not contribute to Social Security payroll taxes. These individuals can lose up to half their pension.

 

The Government Pension Offset (GPO) lowers survivor or spousal benefits when someone’s pension is non-covered. Although it affects fewer individuals, it can substantially reduce Social Security benefits by two-thirds of the pension’s value. If two-thirds of your government pension surpasses your Social Security benefit, it could be reduced to zero.

 

Experts informed YSL News that these regulations were designed to stop Social Security from overcompensating individuals in non-covered pension jobs.

Public sector employees have been strong advocates for the Senate to support this bill.

American Federation of Teachers President Randi Weingarten stated, “The Social Security Fairness Act corrects a long-standing unfair situation. When you pay into Social Security, it should be accessible to you in retirement without issue. Simple as that.”