On Sunday, President Joe Biden plans to sign into law a measure that boosts Social Security payments for current and former public employees, affecting nearly 3 million people who receive pensions from their time as teachers, firefighters, police officers and in other public service jobs.
Advocates say the Social Security Fairness Act rights a decades-old disparity, though it will also strain Social Security Trust Funds, which face a looming insolvency crisis.
The bill rescinds two provisions — the Windfall Elimination Provision and the Government Pension Offset — that limit Social Security benefits for recipients who receive retirement payments from other sources, including public retirement programs from a state or local government.
The Congressional Research Service estimated that in December 2023, there were 745,679 people, about 1% of all Social Security beneficiaries, whose benefits were reduced by the Government Pension Offset. About 2.1 million people, or about 3% of all beneficiaries, were affected by the Windfall Elimination Provision.
In September, the Congressional Budget Office estimated that eliminating the Windfall Elimination Provision would boost monthly payments to the affected beneficiaries by an average of $360 by December 2025. According to the CBO, ending the Government Pension Offset would increase monthly benefits in December 2025 by an average of $700 for 380,000 recipients getting benefits based on living spouses. The increase would be an average of $1,190 for 390,000 or surviving spouses getting a widow or widower benefit.
Those amounts would increase over time with Social Security’s regular cost-of-living adjustments.
One comment
Idk
January 5, 2025 at 11:53 am
We read 8 more years to insolvency.good luck on that retirement venture