What you should know about the possibility of the ‘Social Security Fairness Act’ becoming a law

WASHINGTON, DC – The “Social Security Fairness Act” — HR 82 — proposes changes to the Social Security regulations affecting millions, pending approval from the president to become enforceable.

The bipartisan bill was first introduced in 2023, though Congress didn’t finish approving it until earlier this month.

Initially introduced by Republican Representative Garret Graves of Louisiana’s District 6 in 2015, HR 82 has now garnered support from over 300 additional Representatives who have signed on as cosponsors.

On Friday, the legislation finally hit President Joe Biden’s desk, and he has until Jan. 8 to sign the bill.

If he doesn’t, then the bill will fail to become law.

WHAT DOES THE BILL DO?

Should it pass, the bill aims to modify the Social Security Act by eliminating sections that result in the reduction of Social Security benefits for individuals receiving government pensions.

These provisions impact millions of people in the U.S., including police officers, firefighters, postal workers, teachers and plenty of other public service employees.

The Government Pension Offset in the Social Security Act (enacted in 1977) can reduce Social Security benefits for spouses, widows, and widowers who receive government pensions of their own, so HR 82 would also eliminate those reductions.

In addition, HR 82 seeks to get rid of the Windfall Elimination Provision (enacted in 1983), which can reduce Social Security benefits for those who receive a pension or disability benefit from an employer that didn’t withhold Social Security taxes.

According to the CRS, nearly 3 million Social Security beneficiaries have had their benefits reduced by these provisions, so the

These changes would be effective for benefits that are payable after December 2023.

WHAT SHOULD I EXPECT IF THE BILL IS SIGNED?

The Social Security Administration has issued the following statement about what to expect should Biden sign the bill into law:

“The Social Security Fairness act, HR 82 concerning Windfall Elimination Program and Government Pension Offset has not been signed into law. It would eliminate the reduction of Social Security benefits while entitled to public pensions. At this time, the Social Security Administration is evaluating how to implement it if it is signed into law. We will provide more information on our website, ssa.gov as soon as it is available. If you are already entitled, you do not need to take any action at this time except to verify that we have your current mailing address and direct deposit information. If you are receiving a public pension and are now interested in filing for benefits, you may file online at ssa.gov or schedule an appointment.”

Social Security Administration, “Elimination of (WEP) and (GPO)”

WHAT IS THE CONTROVERSY SURROUNDING THIS BILL?

According to CBS News, Democratic lawmakers largely supported the bill, claiming that workers who have already paid into the program over the course of their careers are entitled to the funds.

However, Republicans appeared to be split on the issue, with many pointing to the huge costs associated with these changes, which could accelerate the Social Security fund’s insolvency by roughly six months. Researchers estimate that the fund will become exhausted as early as 2037.

In fact, researchers with the SSA have found that the amendments to the program in 1977 and 1983 — some provisions of which HR 82 seeks to eliminate — were actually responsible for bolstering the fund’s reserves. Without them, the fund risks falling into the red.

Per policy analysts, GPO defenders maintain that the provision helps ensure that only financially dependent spouses receive the full Social Security spousal benefit, though opponents argue that it can potentially harm lower-wage workers like teachers, possibly driving them into poverty.

Alongside that, proponents of the WEP claim that the provision is meant to prevent overly generous or unintended benefits to certain workers who might otherwise profit from the program. Meanwhile, opponents say that the provision substantially reduces a benefit that certain workers may have included when planning for retirement.

In the meantime, News 6 has reached out to the White House for more information and is awaiting a response.

News 6 has attached a copy of the bill, which can be read below.

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