Millions of Americans’ Social Security benefits could be affected by a controversial bill with a late vote in the coming days.
The U.S. Senate has captured the attention of everyone.
Time is running out on this session of Congress, and there is a close watch on the upper chamber. Any bills that have not made it across the legislative finish line before a new session begins in January are causing concern.
The Social Security Fairness Act, a bill currently under consideration, has the potential to benefit millions of Americans by addressing two existing limitations on Social Security checks: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). If passed, this act could increase or extend Social Security benefits for many individuals.
For decades, both of these limitations have remained unchanged.
If an individual is receiving a monthly payment from specific pension plans, their Social Security payments may be reduced or even eliminated. These provisions can impact not only the retiree but also their spouse and dependents who receive monthly payments from pensions where Social Security taxes were not deducted.
Imagine this scenario: Picture a journalist who dedicated 12 years of their life to their profession. Throughout this time, FICA taxes were consistently deducted from their paychecks, indicating that they made regular contributions to Social Security.
But imagine if that journalist were to change careers and spend the rest of their working life as a teacher, police officer, or firefighter. In this new profession, they would contribute to a retirement pension plan instead of Social Security.
Supporters of the Social Security Fairness Act argue that when someone retires, their Social Security benefits should not be reduced or eliminated solely because they transitioned from being a journalist to becoming a public servant with a pension.
They believe that the Social Security benefits earned and paid into during the person’s first 12 years as a journalist should be fully protected.
Opponents of the bill question the rationale behind providing Social Security benefits to individuals who are already receiving a pension.
They find it unfair that these individuals, who have only contributed to the social safety net for 12 years, would be eligible for additional benefits, considering that many Americans contribute to it throughout their entire adult lives.
Critics of the bill question why a pensioner who never contributed to Social Security should receive full spousal benefits. Additionally, opponents are concerned that passing this law may exacerbate the existing financial pressures that Social Security is already facing in the future.
In Texas, a whopping 103,530 individuals are currently impacted by the Government Pension Offset. These residents stand to benefit greatly if the Social Security Fairness Act is passed and the offset is eliminated.
Texas is home to a significant number of individuals who are impacted by the Windfall Elimination Provision. With 215,773 Texans affected by this provision, the state ranks second in terms of the highest number of affected individuals.
However, there is a potential for Texas to benefit greatly if the Social Security Fairness Act is passed and the Windfall Elimination Provision is eliminated.
The Texas delegation received bipartisan support and overwhelming approval when the House of Representatives passed a comparable measure.
The bill’s journey to becoming law is not yet complete as it still needs to pass the Senate. However, there is a growing public support for the bill, and it recently gained significant momentum.
This week, it successfully cleared a major procedural hurdle in the Senate, receiving overwhelming and bipartisan approval. In order for the bill to become law, it must pass the Senate in the next few days and be signed by President Biden.