The New Social Security law will change much about Benefits: Explore more!

Specific improvements are coming to Social Security that the impacted beneficiaries would enjoy. The House finally addresses two provisions that have made life difficult for some people: the 1983 Windfall Elimination Provision and the 1977 Government Pension Offset Provision. These regulations hinder employees from collecting full benefits, yet there is more to it.

Breakout of The Social Security Administration:

The Social Security Administration (SSA) defines the Windfall Elimination Provision (WEP) as “a formula used to adjust Social Security worker benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security-covered earnings.” An employer who does not deduct Social Security taxes from your income, such as state and local governments or non-U.S. companies, provides a non-covered pension. Congress enacted the WEP to prevent workers with non-covered pensions from receiving higher Social Security benefits as long-term, low-wage earners.”

Adjustments of GPO:

The Government Pension Offset Provision (GPO) “adjusts Social Security spousal or widow(er) benefits for people who receive non-covered pensions.” An employer who does not deduct Social Security taxes from your income, such as state and local governments or non-U.S. companies, provides a non-covered pension.

Congress established the GPO in 1977 to ensure that spousal and widow(er) payments for people with covered or non-covered lifetime earnings are comparable. The GPO reduces the spouse or widow(er) benefit by two-thirds of the monthly non-covered pension, which can partially or offset an individual’s spousal/widow(er) benefit based on the size of the non-covered pension, as the Social Security Administration explains. While this was a fine idea in theory, circumstances have changed when it was adopted, and pensions are no longer the same as when the laws were established.

The enactment of the Social Security Fairness Act:

The Social Security Fairness Act, sponsored by Reps. Garrett Graves (R-LA) and Abigail Spanberger (D-VA), backed by Sens. Sherrod Brown (D-OH), Susan Collins (D-ME), and House Speaker Mike Johnson (R-LA), among others, had a good chance of passing due to widespread bipartisan support. The act is likely to pass by voice vote; however, if a recorded vote is sought, passage requires two-thirds rather than a simple majority.

The impartial Congressional Budget Office put a damper on the idea, indicating that if it passes, removing the WEP and GPO will cost approximately $196 billion over the next decade, putting additional financial strain on the already overburdened Social Security program. However, testimonials from law enforcement officers, firefighters, and public servants who have all had their full benefits withheld speak out about how they have been harmed by the WEP and GPO provisions introduced in June, which may have convinced enough members to avoid the requirement for a supermajority.