Additional Coverage:
- Senate plans to vote on bill that would increase Social Security benefits for some pensioners (cnbc.com)
Social Security Fairness Act Stalled in Senate
Millions of retirees may face reduced Social Security benefits if they receive income from public pensions. A bill to eliminate these rules passed the House with overwhelming support, but the Senate has yet to vote on it.
The bill, known as the Social Security Fairness Act, would end the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules reduce benefits for retirees who also receive pensions from jobs that did not contribute to Social Security.
Supporters argue that the rules are unfair because they punish public workers who have paid into Social Security. They also say the bill would help reduce the retirement income gap between public and private sector workers.
However, critics argue that the bill is not the best solution. They say the WEP and GPO were designed to ensure that all Social Security beneficiaries receive fair compensation for their contributions. Eliminating these rules could lead to higher benefits for some retirees who have not contributed as much to the program.
The bill also faces opposition because it does not include a way to offset the cost of the benefit increases. The Congressional Budget Office estimates that the bill would cost $196 billion over 10 years.
The Senate has just days left in this session of Congress to vote on the bill. If it does not pass, it will die and retirees will continue to have their Social Security benefits reduced.