Senate Votes to Boost Social Security for Public Workers

Early on Saturday, the US Senate passed a bipartisan bill aimed at increasing Social Security benefits for nearly 3 million public sector workers like firefighters, police officers, and teachers. The vote was 76 in favor and 20 against. If signed by President Joe Biden, the benefits will apply from December 2023 onwards. The Social Security Fairness Act, which already got strong bipartisan support in the House, targets two controversial policies: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These policies reduce benefits for public service employees who have pensions from jobs not covered by Social Security but have paid into the program through other jobs or via a spouse.

The WEP affects retired or disabled workers with fewer than 30 years of significant earnings from Social Security-covered jobs. The GPO cuts spousal or surviving spousal benefits for those with noncovered employment pensions. Republican Sen. Susan Collins highlighted the unfairness with an example of a retired teacher who returned to work at 72 after her husband's death, as her survivor benefits were slashed by two-thirds due to the GPO. Critics argue the bill isn't funded and could speed up Social Security's insolvency, currently projected for 2033 (or 2035 with the disability fund). The Congressional Budget Office estimates the bill will cost $200 billion over 10 years, possibly advancing insolvency by six months. Some experts suggest reforming, not eliminating, the WEP to prevent overgenerous benefits.

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