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Home News House Passes Social Security Fairness Act: A Potential Lifeline For Millions

House Passes Social Security Fairness Act: A Potential Lifeline For Millions

by Celia

The House of Representatives has passed the Social Security Fairness Act, a groundbreaking piece of legislation that could significantly alter Social Security payments for millions of beneficiaries. The bill now moves to the Senate, where it has garnered strong bipartisan support.

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On November 12, the House voted to advance this crucial measure, which aims to repeal two federal laws that currently reduce benefits for approximately 2.8 million Americans employed in federal, state, and local governments. The legislation seeks to eliminate the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), both of which have long been criticized for unfairly penalizing public sector workers.

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The GPO reduces spousal or survivor benefits for retirees who did not contribute to Social Security through payroll taxes, affecting around 800,000 retirees. Meanwhile, the WEP can decrease benefits for individuals who receive pensions from public sector jobs that were exempt from Social Security contributions, impacting about 2 million beneficiaries.

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The Social Security Fairness Act was propelled into the spotlight earlier this fall when its sponsors—Louisiana Republican Garret Graves and Virginia Democrat Abigail Spanberger—successfully filed a discharge petition to force a vote on the bill without committee approval.

If enacted, the legislation would restore full benefits to those affected by the GPO and WEP provisions. According to a 2020 analysis by the Urban Institute, repealing these provisions could increase benefits for 4.5% of all beneficiaries by an average of $7,300 per year by 2025. However, the Congressional Budget Office estimates that this change could increase government deficits by approximately $195 billion over the next decade.

Senate sponsors Susan Collins (R-ME) and Sherrod Brown (D-OH) have joined Graves and Spanberger in urging Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell to prioritize a vote on this important legislation. They argue that public servants who contribute to society through various roles—such as delivering mail, educating children, and caring for veterans—should not be penalized in their retirement benefits.

Despite its bipartisan support, the bill faces uncertainty in the Senate due to concerns over its projected impact on government deficits. The fate of this legislation will depend on upcoming Senate discussions and broader budgetary considerations.

If passed and signed into law, the Social Security Fairness Act would apply to all benefits due after December 2023, offering hope for millions of Americans who have long faced inequities in their Social Security payments.

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