In a big legislative move, the United States Senate has passed the Social Security Fairness Act, a bill aimed at addressing long-standing disparities in Social Security benefits for millions of public sector workers.
This historic legislation, which has been in the making for decades, will soon head to President Joe Biden’s desk for final approval. Its passage marks the culmination of years of advocacy by retired public employees and their allies, and the bill’s approval comes as one of the last major actions by Congress this year.
The bipartisan legislation, which received strong support in both chambers of Congress, repeals provisions of existing Social Security laws that have historically reduced benefits for certain groups of public sector retirees. Specifically, it eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These provisions have been widely criticized for unfairly penalizing retirees who have spent major portions of their careers in public service roles, such as teaching, firefighting, and law enforcement, while also contributing to Social Security through other employment.
Addressing a Decades-Old Issue
The passage of the Social Security Fairness Act represents a monumental victory for millions of retired public employees. For decades, these individuals faced reduced Social Security benefits because of the WEP and GPO. The WEP affected retirees and individuals with disabilities by reducing their Social Security payments if they also received pensions from non-Social Security-covered employment. Meanwhile, the GPO reduced spousal and survivor benefits for individuals receiving such pensions.
Senate Majority Leader Chuck Schumer highlighted the importance of the bill’s passage, stating, “Millions of retired teachers, firefighters, and other public service workers have waited decades for this moment. No longer will they see their hard-earned Social Security benefits diminished.” Advocates for the bill have long argued that the WEP and GPO created inequities that disproportionately affected public sector workers who paid into Social Security through secondary employment or other contributions.
While the Social Security Fairness Act addresses a critical issue of fairness, it also comes with financial implications. The Congressional Budget Office (CBO) estimates that the repeal of the WEP and GPO will increase federal deficits by $195 billion over the next decade. Additionally, this change is expected to hasten the insolvency of the Social Security Trust Funds by approximately six months, with full benefit payouts now projected to become unsustainable starting in 2035.
Despite these concerns, supporters of the bill argue that rectifying decades of injustice for public sector retirees outweighs the financial challenges. According to estimates, more than two million Social Security recipients will benefit directly from the legislation, with many retirees seeing an average increase of $360 in their monthly payments. However, the broader financial strain on the Social Security system remains a grave issue for lawmakers to address in the coming years.
A Bipartisan Effort
The bill’s passage reflects a rare moment of bipartisan cooperation in Congress. The final vote in the Senate was 76-20, with all Senate Democrats and 27 Republicans supporting the measure. Earlier, the House of Representatives had approved the legislation with a similarly strong bipartisan vote of 327-75.
Senator Sherrod Brown, a long-time advocate for the repeal of the WEP and GPO, expressed his satisfaction with the outcome. “Social Security is a cornerstone of middle-class retirement security,” Brown said. “It’s a program that Americans pay into and earn over a lifetime. This legislation ensures that public servants receive the benefits they have rightfully earned.”
GREAT NEWS: The Senate passed the Social Security Fairness Act, a bill I authored with Senator Sherrod Brown, by a vote of 76-20 last night! It will be signed into law in the coming days. pic.twitter.com/2xhxRDsG70
— Sen. Susan Collins (@SenatorCollins) December 21, 2024
Republican Senator Susan Collins also voiced her support, calling the existing provisions “an unfair, inequitable penalty” on public sector retirees. She emphasized the bipartisan nature of the effort, noting that lawmakers from both parties recognized the need to address the issue and restore fairness to the Social Security system.
Despite its bipartisan support, the Social Security Fairness Act faced opposition from some lawmakers who expressed concerns about its fiscal impact. Senator Thom Tillis, a Republican from North Carolina, criticized the bill for failing to address the broader financial challenges facing the Social Security system. “We caved to the pressure of the moment instead of addressing this issue on a sustainable basis,” Tillis said.
Other critics pointed out that the Social Security Administration (SSA) is already struggling with reduced staffing levels and increasing workloads. The agency’s current workforce of approximately 56,400 employees is its smallest since 1972, even as it serves a growing number of beneficiaries. The additional administrative burden of implementing the changes under the Social Security Fairness Act could further strain the SSA’s resources.
The passage of the Social Security Fairness Act would not have been possible without years of advocacy by public employee unions and retiree organizations. The International Association of Fire Fighters (IAFF), one of the bill’s staunchest supporters, praised Congress for addressing what it called a “broken promise” made to public servants decades ago.
“Millions of retirees devoted themselves to protecting our communities, teaching our children, and delivering essential services,” said IAFF General President Edward A. Kelly. “They kept their promise to the American people, and now Congress has done the same by restoring these Social Security benefits.”
Unions and advocacy groups celebrated the bill’s passage as a victory for fairness and equity, while also calling for continued efforts to address the broader challenges facing the Social Security system.
What lies ahead for the Social Security program
As the Social Security Fairness Act awaits President Biden’s signature, attention now turns to the future of the Social Security program as a whole. While the repeal of the WEP and GPO addresses a major fairness issue for public sector retirees, it also highlights the need for comprehensive reforms to ensure the program’s long-term sustainability.
Some lawmakers have proposed measures such as gradually increasing the retirement age or revising benefit formulas to address the program’s financial challenges. However, such proposals are likely to face strong political and public resistance.
Sen. Rand Paul’s amendment to raise Social Security retirement age to 70 fails by a vote of 3-93.
Sen. Schumer: “Came close. Came close.” pic.twitter.com/QnEkVMR9NO
— Jeremy Art (@cspanJeremy) December 21, 2024
For now, the Social Security Fairness Act represents a major step forward for millions of retirees who have long been penalized under the existing system. Its passage underscores the importance of bipartisan cooperation in addressing complex policy issues and ensuring that public servants receive the benefits they have earned.
