The U.S. Senate passed a bill early Saturday that would boost Social Security benefits for millions of Americans. The legislation would repeal the windfall elimination provision (WEP) and the government pension offset (GPO). These provisions reduce or eliminate benefits for certain federal retirees, public servants, and their surviving spouses.
Last night, the Senate passed our Social Security Fairness Act.
This means teachers, firefighters, police officers, and other public servants in AZ will get the Social Security benefits they earned – a clear win for families across our state.https://t.co/VDSue06h3L
— Ruben Gallego (@RubenGallego) December 21, 2024
The bill, known as the Social Security Fairness Act, now heads to President Joe Biden’s desk for his signature. It passed the Senate by a vote of 76-20 just after midnight on Saturday. The House had already approved a similar bill in November.
Public servants dedicate years of service to improving the lives of their neighbors and caring for their communities. As they retire, they should have full access to their social security benefits. I voted in support of the Social Security Fairness Act to ensure that they do.
— Senator Dick Durbin (@SenatorDurbin) December 23, 2024
Approximately 2.4 million individuals are impacted by WEP and GPO. This includes federal annuitants in the Civil Service Retirement System, firefighters, teachers, and law enforcement officers.
The Senate has followed the House and passed our #SocialSecurityFairnessAct by a vote of 85-11. This means that tens of thousands of Ohioans and millions who served communities nationwide will now be able to receive the full retirement benefits they earned.https://t.co/P5uAenvd6b
— Rep. Marcy Kaptur (@RepMarcyKaptur) December 21, 2024
The WEP reduces benefits for annuitants who worked in both a public sector position not covered by Social Security and a job that is covered by Social Security.
The GPO reduces Social Security for surviving spouses who also worked in the public sector. The two-thirds reduction by GPO often results in a full elimination of the benefit. Advocates have called the WEP and GPO provisions unfair to public servants.
When @POTUS signs the #SocialSecurityFairnessAct into law, millions of teachers, first responders, letter carriers & other public workers will get the fairness they earned.
Penalizing public service is wrong. I’m proud to help correct this costly mistake.https://t.co/IGY2UrWLpp
— Rep. Debbie Wasserman Schultz (@RepDWStweets) December 21, 2024
Senate passes Social Security bill
They say the legislation will ensure all public sector retirees receive the Social Security benefits they earned during their careers. “This is something we’ve been working on for 40 years,” said John Hatton, the National Active and Retired Federal Employees Association’s staff vice president of policy and programs.
“It’s been penalizing people simply because they’ve earned their government pension and then they earn, separately through private sector work, their Social Security benefits.”
However, the legislation has faced some criticism. Republicans who voted against the bill argued that it would negatively impact Social Security’s solvency. They called for reforms rather than a full repeal of WEP and GPO.
The Committee for a Responsible Federal Budget, a nonpartisan organization, has stated that removing WEP and GPO would advance Social Security’s insolvency by about six months. It could also potentially lead to across-the-board cuts for Social Security beneficiaries. Lawmakers who have championed the repeal of WEP and GPO for decades celebrated the Senate’s passage of the bill.
“There is no doubt that Congress has taken too long to address this inequity, but I am grateful to the diligent bipartisan work of my colleagues to help us finally get this over the finish line,” said Sen. Lisa Murkowski (R-Alaska) in a statement. The bill’s passage comes as Social Security recipients are set to receive a 2.5% increase in their benefits starting in 2025.
This cost of living adjustment (COLA) is calculated by the Social Security Administration based on changing prices and the economy. Recipients should have received a notice about exactly how much more they will receive when the first Social Security payments go out in about two weeks.