WPBN: A bill that has been in the works for decades was enacted by Congress over the weekend. Critics claimed that the Social Security Fairness Act would further depress the program’s finances by increasing Social Security retirement payments to almost 3 million retirees from the public sector who receive public pensions, including retired firefighters and police officers. Now on its way to President Joe Biden’s desk for approval, the law would cost over $195 billion over ten years.
Two decades-old regulations that restricted benefits for those who also receive a pension will be repealed by the Social Security Fairness Act.
At the moment, public servants who get alternative retirement benefits, including a pension, are not eligible to collect their full Social Security benefits.
The Windfall Elimination Provision, which was implemented in 1983 and lowers Social Security benefits for employees who get government pensions that are not protected by Social Security, would be repealed under the measure, which was approved by the House last month.
The Government Pension Offset, which was implemented in 1977 and lowers benefits for spouses, widows, and widowers whose spouses earn public sector pensions, will also be repealed.
“The passage of this important legislation not only provides relief to thousands of my constituents [in Ohio] who are frustrated they can’t receive their full Social Security benefits – it demonstrates what Congress is capable of when we work together in bipartisan fashion,” Rep. Emilia Sykes stated. “There’s no good reason why teachers, firefighters, and other public service employees who have earned their retirement benefits should not receive them.”
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“The Social Security Fairness Act is widely supported across both parties, as it would eliminate the Windfall Elimination Provision and the Government Pension Offset,” Romi Savova, founder and CEO of fintech retirement firm PensionBee stated. “These provisions effectively reduced the level of Social Security certain workers, including those who receive other generous pension payments, are entitled to.”
“Proponents of the bill argue that these reductions are unfair, as the affected individuals contributed to Social Security funding during their working years. Opponents of the bill argue that affected individuals are already receiving abundant retirement funds. Ultimately those who were previously affected by the Windfall Elimination Provision or the Government Pension Offset, will receive higher retirement benefits through Social Security.”
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