WASHINGTON – Congress passed a bill early Saturday morning that would increase Social Security benefits for public sector workers.
The Social Security Equity Act would eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset Provision (GPO), which reduce Social Security benefits for certain retirees who also receive pension income.
Together, WEP and GPO affect nearly 3 million Americans, including police officers, firefighters, postal workers, and public school teachers.
The Senate approved the bill at 12:15 a.m. by a vote of 70-26. The bill passed the House of Representatives in November and now heads to the President's desk for signature.
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The bill is “a great gift to retired firefighters, police officers, postal workers, teachers, and others who have contributed to Social Security for years but are now being punished for serving in public service,” the Senate majority said. said House President Chuck Schumer. D.N.Y. said Wednesday. “It's not fair. It's extremely unfair. It goes against the American ideal of working hard, accumulating money little by little and enjoying a fulfilling retirement.”
However, some senators who voted against the bill argued that the bill would unfairly benefit some workers, increase Social Security burdens for others, and reduce the entire Social Security fund. He argued that it would put him at risk.
“Let me be clear: this bill increases the inequities in how Social Security benefits are calculated,” Sen. Chuck Grassley (R-Iowa) said in a speech on the Senate floor Friday. said.
Sen. Thom Tillis (R.N.C.) said the Social Security Trust Fund will be insolvent in less than 10 years, and this bill will speed it up.
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“This policy addresses the social security challenge of single-digit pension entitlement rates,” he said. “It needs to be fixed, but this is not the way to fix it.”
estimates that the bill would cost $196 billion over the next 10 years. Congressional Budget Office.
The Windfall Exemption Provision (WEP) reduces Social Security for people who earn “non-qualified” pension income from jobs (usually public sector roles) that did not contribute Social Security payroll taxes. These workers could lose up to half of their pension.
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Government Pension Offset (GPO) reduces survivor and spousal benefits when a pension is not applicable. Few people will be affected by the GPO, but their Social Security benefits will be cut by two-thirds of their pension amount. If two-thirds of your state pension exceeds your Social Security benefits, your benefits could be zero.
The rule is intended to prevent Social Security from overpaying people who work in jobs that aren't covered by pensions, experts told USA TODAY.
Public sector workers have been pushing hard for the bill to be considered in the Senate.
“The Social Security Fairness Act rightes a wrong that has been unfair and uncorrected for far too long,” Randi Weingarten, president of the American Federation of Teachers, said in a statement. “If you have Social Security, you should be able to receive it when you retire.”
