How the Social Security Fairness Act Will Benefit 150,000 Retired Ohioans Starting in 2025?

In a significant move to support retired public employees, President Biden is set to sign the Social Security Fairness Act, a bill aimed at ending restrictions that have impacted the retirement benefits of public workers in Ohio and across the U.S. for decades.

The legislation passed both the Senate and the House with wide support, making it a historic moment for many Ohioans.

This legislation directly impacts nearly 150,000 retired public employees in Ohio who have faced reduced Social Security benefits due to provisions in a law that dates back to the 1980s.

The new law will remove these reductions, allowing public retirees to receive the full Social Security benefits they are entitled to.

The Road to Change: A Long Time Coming

The Social Security Fairness Act passed the Senate with a 76-20 vote after securing approval in the House back in November with a 327-75-1 vote.

All of Ohio’s congressional delegation, except Vice President-elect U.S. Senator JD Vance (R-OH), voted for the bill.

Vance did not cast a vote, while both Vance and outgoing Senator Sherrod Brown (D-OH) had sponsored the bill.

For Senator Brown, this victory came after more than two decades of hard work and advocacy. “Congress ensured that police officers, firefighters, teachers, and public servants across Ohio will be able to retire with the Social Security they spent their lives paying into,” Brown remarked.

Although Brown was defeated in his reelection bid last November, he continues to celebrate this legislative win as a critical victory for Ohio’s public employees.

Other Ohio lawmakers who played a key role in pushing the bill forward include Representatives Mike Turner, Troy Balderson, David Joyce, Bill Johnson, Max Miller, Mike Carey, Michael Rulli, Joyce Beatty, Shontel Brown, Marcy Kaptur, Emilia Strong Sykes, and Greg Landsman.

What Were the Old Social Security Rules?

For over 40 years, public employees who paid into Social Security through private sector jobs were denied the full benefits they earned due to provisions in the Social Security Reform Act of 1983.

The law included two key provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which reduced Social Security payouts for public workers, including teachers, firefighters, and police officers.

This left many public employees wondering if they would have been better off not working in the public sector at all.

For those in the lower-income brackets, this was particularly discouraging, as they discovered that their pensions and Social Security payments were unfairly reduced compared to their private sector counterparts.

Aristotle Hutras, a retired public pension expert and former head of the Ohio Retirement Study Council, said, “It’s been a long time coming.”

He described the passage of the bill as a major step in correcting this longstanding issue. “The government has been balancing Social Security’s solvency on the backs of public employees,” Hutras said.

“They paid into the system for years, only to be unfairly penalized when it came time for retirement.”

What Does the New Law Do?

The newly passed bill eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have been responsible for reducing the Social Security payments of public employees who had also worked in the private sector and paid into Social Security.

This change means that public retirees, such as teachers, police officers, and firefighters, will now receive the full Social Security benefits they’ve earned.

The passing of the Social Security Fairness Act brings much-needed relief to Ohio’s public employees, many of whom had felt they were unfairly penalized for their service.

With the law in place, these retirees will now see a more substantial financial future when they enter retirement, helping them live more comfortably after years of service.

The Price of Change: What’s Next for Social Security?

The Congressional Budget Office estimates that the Social Security Fairness Act will cost the government around $196 billion over the next ten years.

While this is a large price tag, proponents argue that it is a necessary investment to ensure that public employees are treated fairly after a lifetime of hard work.

Aristotle Hutras expressed concern, however, that while this is a victory for public workers, it is now even more critical for Congress to work on the long-term solvency of the Social Security system.

If left unaddressed, the Social Security system could run out of funds by 2033, as reported by the U.S. Government Accountability Office.

While there have been some proposed solutions to shore up the system—like raising the retirement age or implementing means testing for benefits—none of these proposals have come close to passing.

“It’s about time Congress addresses the solvency of Social Security,” Hutras said. “Now we need to ensure that the system is sustainable for future generations without taking away from those who have paid into it their whole lives.”

A Step Toward Fairness, But More Work Ahead

For Ohio’s retired public employees, the Social Security Fairness Act represents a long-awaited victory. But as the law eliminates a historical injustice, the next challenge lies in ensuring the long-term stability of Social Security.

While the legislation is a significant milestone, the future of the program remains uncertain, and lawmakers will need to continue working on solutions to protect the benefits of all Americans.

This win for Ohio’s public employees serves as a reminder of the importance of advocating for fair treatment for those who dedicate their careers to public service.

For now, nearly 150,000 Ohioans can breathe a little easier knowing that their retirement security will no longer be unfairly diminished.

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