A new bill, the Social Security Fairness Act, is gaining traction in Congress and could significantly increase Social Security checks for a group of retired Americans. The proposed bill seeks to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) laws, which have historically reduced Social Security payments for retirees in certain professions, including law enforcement, firefighters, educators, and other public servants.
How the Fairness Act Affects Retirees
As of now, 218 signatures have been collected, which is the number required to bring the Social Security Fairness Act to a vote. If passed, the bill could directly benefit around 3 million Americans whose Social Security payments are reduced due to WEP and GPO. These laws affect workers who paid into different pension systems but also qualify for Social Security benefits, reducing their payouts unfairly.
For instance, if someone worked for a non-covered employer (who did not withhold Social Security taxes), their Social Security benefits could be reduced, even if they worked enough years in covered positions to qualify for benefits. The repeal of WEP and GPO could change this scenario for many retirees, providing them with the full benefits they deserve. To learn more about how this bill could impact retirees, visit this detailed resource.
Read More News:
- Next SSI Payment Date Confirmed: What You Need to Know
- Preparing for Social Security Benefit Cuts: Key Strategies for Retirees
Financial Impact of the Bill
However, the bill faces challenges in the Senate, and financial experts are concerned about its long-term costs. The Congressional Budget Office estimates that repealing WEP and GPO could cost $196 billion over 10 years. Despite this, the bill could offer critical financial relief for retirees who have seen their benefits drastically reduced due to these provisions, especially those nearing their retirement years.