The U.S. House of Representatives passed a bill last week that would expand Social Security benefits for millions of public sector workers. The Social Security Fairness Act aims to repeal two provisions that currently reduce payments for these retirees. The Windfall Elimination Provision (WEP) affects around 2 million beneficiaries.
It reduces benefits for individuals who receive a public pension from a job that did not pay into Social Security. The Government Pension Offset (GPO) impacts about 800,000 retirees. It cuts the benefit received by surviving spouses who also collect a government pension by two-thirds.
“By passing the Social Security Fairness Act, a bipartisan majority of the U.S. House of Representatives stood up for millions of Americans—police officers, teachers, firefighters, and other local and state public servants,” said Representatives Abigail Spanberger and Garret Graves, the bill’s sponsors. The legislation now moves to the Senate, where it has 62 cosponsors. However, the Senate faces challenges in prioritizing the bill amid other responsibilities.
Senate Majority Leader Chuck Schumer has not yet brought the Act to a vote. He only has until the end of the year to do so before the bill dies.
Senate weighs public pension disparities
If passed, the Act would increase Social Security payments for about 2.5 million Americans. Payments would be retroactive to December 2023. Senator Kirsten Gillibrand, a supporter of the bill, said it would cost around $19 billion per year.
Critics argue that repealing WEP and GPO would hasten Social Security’s insolvency by about six months. The Committee for a Responsible Federal Budget proposes alternative reforms instead of full repeal. But many public sector retirees feel the current provisions are unfair.
“What WEP says to people like me is … we don’t care how much you paid into Social Security and what you’re entitled to, based on what you paid in during the years you contributed to Social Security. We are going to slash your Social Security check because you were a government employee. Period,” said Sara Fischer, a retiree affected by WEP.
Federal labor groups and public employee organizations nationwide are urging the Senate to act swiftly on the bill. Patrick Yoes, National President of the National Fraternal Order of Police, called the House passage “a remarkable occasion” after “40 years” of public servants having “their benefits stolen by a grossly unfair system.”
