The Social Security Fairness Act has passed the House of Representatives. It aims to repeal two provisions that reduce Social Security benefits for some workers. These provisions are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The WEP applies to people who receive pensions from jobs that did not withhold Social Security taxes. In 2022, it affected about 2 million beneficiaries. The GPO applies to spousal or widow(er) benefits for people with non-covered pensions.
It impacted over 700,000 beneficiaries in 2022. Senators and Representatives have urged the Senate to vote on the bill before the end of the year. They say it would help nearly 2.5 million retirees across the nation.
If the bill does not pass by December 31st, it will need to be redrafted and go through the legislative process again next year. Repealing the WEP and GPO would allow affected workers to receive full Social Security benefits. Many of them are blue-collar workers like firefighters and teachers.
Social Security fairness vote in Senate
However, paying the increased benefits is estimated to cost around $190 billion over a decade. This could put further strain on Social Security’s finances.
The bill has bipartisan support but faces some challenges in the Senate. There are concerns it may not have enough votes to pass. Some senators have withdrawn support due to the potential costs.
The Committee for a Responsible Federal Budget noted the bill could hasten Social Security’s insolvency by about six months. Supporters remain hopeful the bill could be attached to other legislation to ensure passage. If it fails, some believe Congress should reform the WEP and GPO rules rather than fully repealing them.
This could strike a balance between fairness and Social Security’s financial sustainability. As the deadline approaches, public sector workers plan to rally at the Capitol to demand action. The future of the Social Security Fairness Act remains uncertain as the Senate has yet to schedule a vote.
Its impact on millions of retirees hangs in the balance.
