The Social Security Fairness Act was recently approved by the U.S. House of Representatives. If the Senate endorses it and the President enacts it, this legislation will repeal both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These measures affect specific employees in the public sector, such as police and fire personnel, as well as various foreign workers whose retirement plans do not contribute to Social Security. The WEP alters the Social Security benefits of individuals who are eligible for both Social Security and a pension from non-FICA covered employment.
According to existing rules, these individuals receive a diminished Social Security benefit in comparison to those who have consistently participated in the Social Security system. The Social Security Fairness Act aims to remove this disadvantage, enabling them to obtain the same benefits as others who have equivalent years of work exclusively within the Social Security framework. The GPO can curtail or even eliminate spousal or survivor benefits relative to the pensions obtained from non-Social Security employment.
The reduction amounts to two-thirds of the pension, which frequently negates any spousal or survivor benefits.
Senate’s Pursuit of Retirement Equality
The legislature in Alaska has passed a resolution calling for urgent congressional responses to these unjust Social Security penalties. Representative Alyse Galvin of Anchorage’s District 14 is pressing the U.S. Senate to give priority to the prompt advancement of the Social Security Fairness Act, advocating for equitable retirement benefits for all public workers. Time is of the essence for the Senate to resolve this matter, as the 118th Congress is near its conclusion, burdened with a crowded agenda that includes disaster relief provisions, deliberations on defense legislation, and government funding to prevent a shutdown. The Senate must cast votes on this bill within the limited 12 working days scheduled for December.
Critics contend that abolishing these provisions might adversely affect the Social Security trust fund, potentially accelerating its insolvency. Current forecasts suggest that the reserves of the trust fund could run out by 2035, leading to diminished monthly benefits for all recipients. As the U.S. Senate prepares to reconvene in December, the urgency increases to tackle this enduring issue and deliver relief to millions of impacted public workers before the year concludes.
