The Senate passed a bill on Saturday morning that is ready for expansion social Security Benefits for millions of Americans who have pensions. called to Social Security Fairness ActIt eliminates two provisions of current Social Security law that reduce benefits for some people. Senate approval follows House approval; President Joe Biden is expected to sign the legislation soon.
Most workers contribute to Social Security through payroll taxes, funding the main program that helps Americans with monthly checks in retirement. However, many people who work in the public sector – such as teachers and police officers – are exempt from these taxes because they are covered by separate pension plans. Government employees hired before 1984 were also part of a separate retirement scheme.
In total, the bill would affect more than 2 million Social Security recipients, as well as some future retirees.
Even with affected public sector workers Pensions Those roles are exempt from paying social security tax, many are eligible for social security through other work. It could be a second job or a private sector job at some point in their life. (To qualify for Social Security benefits, you need to work in a qualifying position and pay taxes for at least 10 years.)
According to defenders of the old laws, two provisions of the Social Security Fairness Act nix — the windfall elimination provision and the government pension offset — were designed to prevent “double-dipping” with pensions and Social Security.
Winfall provision applicable to retired employees and employees with disabilities, and Congressional Budget Office (CBO) estimates it would increase monthly checks to 2.1 million affected beneficiaries by $360 based on projected benefits in December 2025.
Major bipartisan coalitions in Congress, as well as Biden and President-elect Donald Trump, wanted to repeal these policies, disagreeing with the notion that they were necessary to prevent people from “double-dipping”. The House voted 327 to 75 to pass the Social Security Fairness Act in November, and the Senate voted 76-20.
Proponents of the bill argued that public sector workers who pay Social Security taxes are entitled to the same retirement benefits as anyone else.
Ending the two provisions and expanding Social Security benefits to millions comes with a price tag. The act will cost $196 billion over 10 years CBOAnd it will increase social security The possibility of bankruptcy According to about six months Committee for a Responsible Federal BudgetA non-profit focused on fiscal responsibility.
A few weeks ago, the bill’s fate in this lame-duck session of Congress was uncertain. Despite bipartisan support, it was unclear whether Senate leadership would want to spend valuable time voting on it. But at the Dec. 11 rally, Sen. Chuck Schumer, D.N.Y., Told the union workers He was committed to voting.
“You’re going to find out which senators are with you and which are against you… What’s happening to you is unfair, un-American, [and] I will fight it all the way,” he said in Washington, DC. said happily as the rain fell.
From there, passage appeared likely with more than 60 senators already co-sponsors. While some Republican senators slammed “poison pill” amendments to the bill in the final days, the legislation ultimately had enough supporters to overcome the challenge before the Senate adjourned until the new year.
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