Bill to Increase Social Security Benefits for Some Retired Federal Workers Nears Approval | Global News Avenue

The Senate passed a bill that would provide better Social Security benefits to certain retired public sector workers.

The Senate passed the Social Security Equity Act on Saturday by a vote of 76 to 20. Its next stop is President Joe Biden’s desk, although it was unclear Monday whether he planned to sign it into law. Critics say the bill could shorten Social security validity period and increase federal deficit.

The bill was originally introduced in 2023 and received bipartisan support when it passed the House. It aims to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

WEP reduces social security payments beneficiary A person who already receives a retirement or disability pension from federal, state, or local government.

GPOs reduce payments to beneficiaries who work part of their careers in the public sector and part of their careers in companies that pay Social Security taxes. The GPO also adjusts the spouse and survivor The work performed by its partners is not subject to Social Security taxes.

Supporters say the bill will provide fair benefits to affected retirees

Supporters of the bill say it will help some retired Americans — more than 2 million, according to 2022 Social Security estimates — whose benefits have been limited due to WEP and GPOs.

Randy Erwin, president of the National Federation of Federal Employees, praised the House decision in November, saying it would help public-sector workers who “deserve retirement security.”

“The WEP and GPO are meaningless provisions of Social Security law that have been punishing public servants for nearly four decades,” Irwin said in a statement.

Supporters of the bill also say the WEP and GPO unfairly cut pensions and Disability benefits Americans who both pay into Social Security and work in the public sector.

“These public servants — retired firefighters working second jobs, retired police officers starting second careers after leaving the service, retired teachers using their summer jobs to pay the bills, retired federal employees who first worked in government private sector– are receiving a fraction of the retirement benefits they deserve,” said U.S. Reps. Abigail Spanberger (D-Virginia) and Garrett Graves (R-Louisiana) and U.S. Sen. Sherrod Brown (D-Ohio) and Susan Collins (R-Maine) said in a statement last month.

Critics say the bill would increase the deficit burden and unfairly benefit some people

The advancement of the Social Security Equity Act is not without resistance, mainly from Republican senators. Critics say this will damage taxpayer and Social Security programs, while providing greater benefits to some higher earners.

The Congressional Budget Office (CBO) estimates that the bill would add nearly $196 million to the deficit over the next 10 years. The Cato Institute, a think tank that promotes libertarian ideas, also accused it of increasing taxpayer costs and “unfairly (benefiting) public sector workers.”

Social Security’s retirement benefit trust fund is expected to be exhausted by 2033, but the Committee for a Responsible Federal Budget (CRFB) said the bill would accelerate the shortfall by six months.

“Social Security is just nine years away from bankruptcy, and our seniors need this problem solved as soon as possible,” CRFB President Maya MacGuineas said in a statement. “For those who say they want to protect Social Security “This bill goes in the absolutely wrong direction.”

Henry J. Aaron, senior fellow emeritus at the Brookings Institution, said the bill could also allow high earners to receive benefits that are disproportionate to their income. Without a WEP or GPO, Aaron said, retirees who spent part of their career in public service and another part working on Social Security taxes would likely earn less than they actually do. He said the WEP and GPO formulas used by the Social Security Administration to calculate benefits are imperfect, but there are ways to improve them without completely repealing the provisions.