This week, the House of Representatives is working to pass the Social Security Fairness Act, a bill intended to protect workers who are eligible for both Social Security and other government pensions from reduced benefits.
This bipartisan effort recently faced opposition from hard-right Freedom Caucus leaders, but supporters are pushing forward with renewed determination to get it passed before the current Congress adjourns.
What Is the Social Security Fairness Act?
This Article Includes
The Social Security Fairness Act aims to repeal two existing provisions that reduce Social Security benefits for certain pension recipients. Here’s what each provision does:
- Government Pension Offset (GPO): This provision reduces Social Security spousal or survivor benefits for people who also receive a government pension from an employer that didn’t withhold Social Security taxes, like certain state and local government positions. Under the GPO, two-thirds of a person’s government pension amount is deducted from their Social Security benefits, leaving them with less or even no spousal benefits.
Example: If someone is eligible for a $900 spousal benefit but receives a $1,000 government pension, their Social Security benefit would be reduced by $667, leaving just $233 in spousal benefits. The bill proposes to eliminate this offset so that individuals can receive their full spousal or survivor benefits.
- Windfall Elimination Provision (WEP): This provision affects workers who also have a pension from non-covered employment. It often results in reduced Social Security benefits for individuals receiving pensions from jobs where Social Security taxes weren’t withheld.
If enacted, the Social Security Fairness Act would remove these provisions, allowing recipients to receive full benefits without reductions due to non-covered pensions.
Strong Bipartisan Support
The bill, introduced by Rep. Garrett Graves (R-LA) and Rep. Abigail Spanberger (D-VA), enjoys strong bipartisan support in the House. Over 300 representatives, including House Speaker Mike Johnson, have backed it. Support also comes from groups like the National Association of Counties, which argues that removing the GPO would help recruit new workers, a crucial benefit for counties facing workforce shortages.
Challenges in Moving Forward
To advance the bill, Representatives Graves and Spanberger took an unusual step by filing a “discharge petition,” a rare tactic that forces a bill out of committee and onto the House floor for a vote if it gets at least 218 signatures. This move effectively bypasses House leadership and was a bold choice, especially as neither Graves nor Spanberger are seeking re-election.
However, Freedom Caucus leaders, Rep. Andy Harris (R-MD) and former chair Rep. Bob Goode (R-VA), attempted to halt the bill’s progress by tabling part of it during a routine session on November 5. This delay, due to concerns over additional spending, was based on a Congressional Budget Office (CBO) estimate that the bill could increase the federal deficit by around $196 billion over ten years. The offset amount, Graves argues, reflects what beneficiaries have missed out on under current law.
What’s Next?
Despite this setback, the House is still expected to vote on the Social Security Fairness Act this week. Now, however, the bill must meet a higher supermajority threshold instead of a simple majority, making the path to passage more challenging. While it’s uncertain if the bill will pass the Senate, the broad support in the House gives it a strong foundation for potential success.
If the bill makes it through Congress and is signed by President Joe Biden, the new provisions would take effect for Social Security benefits payable after December 2023, providing much-needed financial relief to affected retirees and widows or widowers.
A Step Toward Fairness
The Social Security Fairness Act represents an important step toward financial fairness for many retirees, particularly those who dedicated years to public service in state and local government roles. The bill’s success in the House so far signals a strong, bipartisan commitment to improving retirement security and making Social Security more equitable for everyone.
