Good news could be coming for millions of Americans who rely on Social Security benefits. A new proposal might increase the amount you receive every month.
Many people think the only way Social Security benefits grow is through the cost-of-living adjustment (COLA), which happens once a year to keep up with inflation. However, other factors can also change your benefits. A proposed law could soon make a big difference for some Social Security recipients.
What’s the New Proposal?
In September, Representatives Garret Graves and Abigail Spanberger introduced the Social Security Fairness Act. This bill aims to change two rules—Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—that currently reduce Social Security payments for certain individuals.
The WEP affects people who worked in jobs not covered by Social Security, such as government or public service jobs.
These workers didn’t pay Social Security taxes because they contributed to a separate pension plan. The rule was created in 1983 to stop “windfall” benefits, where someone gets money from both Social Security and another pension source.
The GPO works similarly but impacts spousal and survivor benefits. It reduces Social Security payments to people who also receive benefits from a different pension plan. This rule applies to dependents, such as spouses or survivors, who might otherwise get benefits from both Social Security and another source.
Who Will Be Impacted?
The proposed changes could affect people who worked in jobs not covered by Social Security. This includes government employees, public school teachers, clergy, police officers, railroad workers, and certain federal employees hired before 1984. These individuals often rely on pensions provided by their employers instead of Social Security.
According to the Congressional Research Service, around 1% of Social Security claimants are affected by the GPO, while 3% face reductions due to the WEP. Overall, these rules reduce benefits for about 4% of all Social Security beneficiaries.
How Does This Help?
The Social Security Fairness Act aims to remove the WEP and GPO. Without these rules, affected workers and their families would receive higher monthly payments.
The changes would make Social Security benefits fairer, especially for those who contributed to the system but have been penalized under current rules.
For example, a retired public school teacher with a pension might have their Social Security spousal benefits reduced because of the GPO.
Similarly, a retired government worker with a pension might see their benefits cut by the WEP, even if they paid into Social Security at some point. The new law would eliminate these reductions.
What Happens Next?
The bill has already passed the House of Representatives with strong support, receiving 327 votes in favor and 75 against. However, it still needs to be approved by Congress in January 2025. If the bill becomes law, the changes will take effect starting in 2025.
In addition, the Social Security Administration (SSA) would need to recalculate benefits for affected individuals, covering payments retroactively to January 2024. This means that if the law passes, some people could see a boost in their Social Security checks, even for payments they already received.
What Should You Do?
If you think you might be affected by the WEP or GPO, it’s important to stay informed about the progress of this bill. Keep an eye on updates from Congress and the Social Security Administration. You can also contact your local representative to express your support for the Social Security Fairness Act.
In the meantime, check your Social Security statement to see if your benefits are being reduced because of these rules. Understanding your current situation can help you plan for any changes that might come if the law passes.
When Will the Changes Happen?
If Congress approves the bill in 2025, the new rules will go into effect immediately. The SSA would then adjust payments for affected individuals. By removing the WEP and GPO, the Social Security Fairness Act would ensure that more people receive the full benefits they deserve.
Why Does It Matter?
Social Security is a critical source of income for millions of Americans, especially retirees and their families. However, the current rules can be unfair to certain groups of people, such as public servants or government employees who also have pensions.
The proposed changes aim to make the system more equitable by eliminating reductions caused by the WEP and GPO. This would provide financial relief to many families and help ensure that Social Security benefits are distributed fairly.
For now, the future of the Social Security Fairness Act depends on Congress. If approved, it could be a game-changer for millions of Americans. Stay updated on this important legislation to see how it might impact your Social Security benefits.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
