WEP & GPO
This legislation aims to repeal the Windfall Elimination Provision (WEP).
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It also seeks to eliminate the Government Pension Offset (GPO).
Impact of WEP and GPO on Social Security Benefits
The WEP and GPO currently reduce Social Security benefits for millions of Americans.
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While the bill has garnered 325 cosponsors, it requires only 218 signatures to compel a House floor vote.
Advocates Demand Full Social Security Benefits for Public Servants
Spanberger and Graves stated in a joint statement, “For more than 40 years, millions of Americans—police officers, teachers, firefighters, and other local and state public servants—have been stripped of their Social Security benefits as an unjust penalty for devoting much of their careers to serving their communities and fellow Americans.”
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“These Virginians, Louisianans, and Americans across our country deserve their full retirement benefits—just like every other American who has paid into Social Security,”
Bipartisan Efforts and Urgency to Address Social Security Issues
They further added: “For years, we have worked together to build bipartisan support for this effort and urge House Leadership to take real action to right this wrong.”
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“As those efforts have stalled, we are using every tool at our disposal to finally get this done.”
Potential Impact of the Social Security Fairness Act
Spanberger and Graves believe that the Social Security Fairness Act could eliminate unfair penalties imposed on public service workers.
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The WEP reduces earned Social Security benefits for those who also receive a public pension from a job not covered by Social Security.
Teachers and Part-Time Workers
This rule affects teachers who work in public schools.
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It also impacts those who hold part-time jobs, leading to reduced benefits.
Effect on Spousal Benefits
The GPO reduces spousal benefits for individuals who work in government positions if their job is not covered by Social Security.
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As a result, surviving spouses collecting a government pension can see their benefits cut by up to two-thirds.
The Need for Social Security Reforms
“Those receiving Social Security benefits are at the forefront of many new bills and proposals and with good reason,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
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“There are plenty of potential revisions that could greatly assist individuals and families who could be receiving increased funding in a time when most of them desperately need it. This bill looks to reform WEP and GPO, two features that reduce Social Security benefits for some state and federal employees in different jobs in various states.”
Impact on 2.8 Million Recipients
Overall, the WEP and GPO affect about 2.8 million Social Security recipients. According to Beene, the proposed law would be a “game changer” for these beneficiaries.
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“In these times where every dollar counts, a boost to Social Security benefits would be an extra layer of financial security many are doing without all because of a decades-old procedure,” Beene noted.
Social Security Funding at Risk
Social Security’s funding has long been considered at risk.
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The latest Trustees report indicates that the government could deplete its funds for full payments by 2033.
Potential 17% Benefit Shortfall
“Social Security will, if Congress doesn’t act, face a 17 percent benefit shortfall for all of our beneficiaries currently in payment status.”
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“The good news is this is a solvable problem,” Social Security Commissioner Martin O’Malley previously said.