A new bill gaining momentum in Congress could bring substantial changes to Social Security benefits for more than 3 million retirees affected by current regulations. The Social Security Fairness Act, a bipartisan proposal, seeks to eliminate the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which reduce benefits for retirees who receive pension income.
As of Thursday, 218 signatures were gathered, enough to force a vote on the bill in the House of Representatives.
The Impact of WEP and GPO on Retirees
The WEP affects around 2 million Social Security retirees by reducing their benefits if they also receive a pension from a job where they did not pay Social Security taxes. Similarly, the GPO reduces spousal benefits for nearly 800,000 federal, state, and local government workers who did not contribute to Social Security through payroll taxes. These provisions have forced many retirees to make difficult financial decisions.
During a press conference, Lois Carson, president of the Ohio Association of Public School Employees, shared her experience. Carson’s survivor benefits were significantly reduced because she and her husband both worked in public sectors. For many retirees like Carson, the elimination of WEP and GPO could provide much-needed financial relief. To learn more about these changes, visit this detailed resource.
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Uncertainty Ahead for the Bill
Despite bipartisan support, the bill’s future remains uncertain. While it has strong backing in the House, the Senate may present challenges. The Congressional Budget Office estimates that repealing these provisions could cost around $196 billion over 10 years, adding to Social Security’s existing financial strain. Experts agree that the WEP and GPO need reform, but some argue that fully eliminating them may not be the best solution.