1 week Ago By Maya Lanzone
CONGRESS is currently on summer recess, but when the legislators return to Capitol Hill, major changes may be in store for Social Security. They make their return on September 9, when two representatives intend to propose amendments to the Social Security Act . The Social Security Act was enacted in 1935 by Franklin D.
Roosevelt during the Great Depression, officially establishing the Social Security program in the US. The program established retirement benefits for workers, as well as benefits for survivors, dependents, and the disabled . Americans have received trillions in support since the inception of Social Security, but some recipients are at the short end of the stick when it comes to benefits.
Two provisions of the Social Security Act are viewed as unfair by many Americans, especially those in public service. Read More on Social Security This includes the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO. The WEP reduces the Social Security benefits of Americans who also receive a pension from work that isn't covered by Social Security.
The GOP reduces the spousal and survivor benefits of those who work for the federal, state, or local government if the job is not covered by Social Security. These two provisions reduce the benefits that employees such as police officers, firefighters, federal employees, and educators receive. Most read in Money Around two million Social Security recipients are impacted by the WEP while the GPO impacts around 800,000 retirees.
LEGISLATIVE MOMENTUM Two House of Representatives legislators are working to remove the provisions and expand Social Security benefits for these Americans. Democratic Representative Abigail Spanberger of Virginia and Republican Representative Garret Graves of Louisiana announced on August 26 their intentions to force a vote to eliminate the WEP and GPO. The pair plan to file a discharge petition to force a vote on the House floor on their bipartisan Social Security Fairness Act.
The proposed Social Security Fairness Act would get rid of the WEP and GPO, two provisions of the Social Security Act. The Social Security Fairness Act has 325 House of Representative members who support it, according to Spanberger and Graves. A discharge petition is a tool used in the House of Representatives to force a bill out of a committee and bring it to the House floor for a vote.
The petition bypasses the typical legislative process and is used when a bill is stuck in committee and most Representatives want to expedite the process, debating and voting on it. There are several steps involved with discharge petitions. Filing - the petition can be filed by any House of Representatives member after a bill has been in committee for a minimum of 30 days without action Signatures - the petition requires at least 218 signatures from House members Bringing the Bill to the Floor - once the bill has enough signatures, it is brought to the House floor for debate and a vote This number exceeds the 218 signatures required on the discharge petition to force the legislation to the House floor for a vote.
“For more than 40 years, millions of Americans — police officers, teachers, firefighters, and other local and state public servants — have been stripped of their Social Security benefits as an unjust penalty for devoting much of their careers to serving their communities and fellow Americans," Spanberger and Graves said. "These Virginians, Louisianans, and Americans across our country deserve their full retirement benefits — just like every other American who has paid into Social Security.” The two representatives reintroduced the Social Security Fairness Act in January 2023 at the start of the 118th Congress.
The Social Security Fairness Act has strong bipartisan support, offering hope to many retired public sector workers who face reduced Social Security benefits due to the Windfall Elimination Provision and Government Pension Offset." In November 2023, they pushed the US House Ways and Means Committee to hold a hearing on reforms to the WEP and GPO, which occurred later that month. Then in March this year, Spanberger and Graves urged the Committee to take the next step in eliminating the two provisions by holding a markup on the Social Security Fairness Act.
The lawmakers have consistently pushed for a vote on the bill and are hopeful it will happen once Congress reconvenes this month. EXPERT OPINION Financial expert Robert Hodgins, fund manager at Sand Hill Road Technologies Fund, spoke exclusively with The U.S.
Sun on the proposed changes. He shared that it's tough to predict how legislation such as the Social Social Security Fairness Act would unfold. "There’s support from some key groups and politicians, but with the way politics can change, it’s really hard to say for sure," he said.
He noted that whether or not the bill was approved depended a lot on the broader political landscape. "It’s encouraging that discussions are ongoing, but for now, it's really a matter of waiting to see what happens," he said. If the Social Security Fairness Act were to be approved, Hodgins noted the overwhelmingly positive benefits it would have on working-class Americans.
"If passed, this act would bring much-needed relief by eliminating [WEP and GPO], allowing retirees to receive the full benefits they've earned. "This change would significantly improve the financial security of millions of Americans, correcting an unfair aspect of the current system and ensuring that all retirees are treated equitably." Read More on The US Sun The U.
S. Sun previously spoke with a Social Security expert about a "delay" trick that can earn workers $26,000 more yearly in benefits. The expert also shared two common mistakes that can lose you thousands a month in Social Security.
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