For decades, public sector workers have faced a frustrating problem in retirement.
Despite working hard, filling important positions in our economy, and paying into Social Security, their benefits are often cut short.
This is due to a couple of policies — the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). While the aim of said policies is to lower Social Security payments for those receiving government pensions, those affected often end up with less money than they paid in.
But the Social Security Fairness Act could change this, according to its proponents. Now supporters of the bill say thanks to its recent signing, public sector works will enjoy more money at the end of each month.
Facts About the Social Security Fairness Act and Its Impact
Recipients impacted by the Windfall Elimination Provision (WEP) can anticipate an average increase of $360 in their monthly Social Security benefits by December, according to the Congressional Budget Office (CBO). Similarly, spouses affected by the Government Pension Offset (GPO) are expected to see average monthly increases of $700, while surviving spouses receiving widow or widower benefits could receive approximately $1,190 more each month.
These adjustments will align with Social Security’s cost-of-living increases over time. Additionally, changes will apply to benefits beginning in January 2024, meaning retroactive payments for eligible beneficiaries. The Social Security Administration (SSA) has advised recipients to ensure their contact and direct deposit details are current, but no further action is needed at this time.
This development comes at a pivotal moment as Social Security faces financial challenges. A May report from Social Security trustees projected that the program’s trust fund could be depleted by November 2033, potentially triggering a 21 percent reduction in benefits.
The Social Security Fairness Act, which addresses WEP and GPO, will impact about 4 percent of beneficiaries and is projected to cost $196 billion over 10 years. The CBO estimates that repealing these provisions will accelerate insolvency by approximately six months.
We aim to raise retirement benefits for all — to help us, sign the Social Security Lock-Box Petition.
