Millions of Americans could see an increase in their Social Security benefits under a bill headed to President Joe Biden's desk, but critics say the bill would bankrupt the fund further. It warns that this will be done at the cost of forcing people to become more vulnerable.
If signed by the president before the new Congress convenes on January 3, it would increase Social Security benefits for more than 2 million beneficiaries, according to the Congressional Research Service. The increase, amounting to $550 a month for some retirees, would be retroactive to December 2023.
Most of these beneficiaries are people receiving pensions abroad or public servants such as police officers, firefighters and teachers who contribute to federal or state pension plans but pay no Social Security taxes.
The law, called the Social Security Fairness Act, would eliminate two programs that cut benefits for these workers who receive foreign or government pensions in addition to Social Security. These provisions, known as the “windfall elimination clause” or the “government pension offset clause,” were enacted more than 40 years ago in response to the growing number of retirees who were not paying their full Social Security contributions and the growing number of working couples retiring.
Proponents of the law argue that the previous Congress over-modified and unfairly withheld vested benefits from retirees and their spouses.
The White House has not said whether Biden will sign the bill, which passed both chambers of Congress early Saturday morning on a bipartisan vote of 327-75 in the House and 76-20 in the Senate.
The Congressional Budget Office estimates that the bill would bring Social Security's collapse, currently projected to occur by 2034, by an additional six months and increase the budget deficit by $196 billion over the next 10 years. As a result, the typical married couple retiring in 2033 could see their lifetime benefits reduced by $25,000, according to the Committee for a Responsible Federal Budget.
The Senate rejected an amendment by Republican Sen. Rand Paul of Kentucky to delay the retirement age to 70. Only three senators supported the amendment.
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(Lillianna Byington and Steven T. Dennis contributed to this report.)
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