close
close

Association-anemone

Bite-sized brilliance in every update

Extended Social Security Benefits Result: Who is affected
asane

Extended Social Security Benefits Result: Who is affected

The House of Representatives voted 325 to 75 for the extension Social security benefits for millions of Americans.

On Tuesday, a bipartisan bill called The Law on Social Security Fairness received approval to repeal two provisions that routinely lower seniors’ monthly Social Security checks.

Historically, Provision for elimination of exceptions (WEP) and the Government Pension Offset Provision (GPO) prevented workers from receiving full Social Security benefits if they also receive a pension.

WEP affects people with less than 30 years of significant earnings from Social Security-covered employment if they also receive an “uncovered pension.”

Instead, the GPO cuts benefits for spouses of those receiving an uncovered pension by about two-thirds.

This affects millions of former public service workers, including teachers, police officers, firefighters and their spouses.

“The plan is to increase Social Security, not reduce it …,” Representative John Larson, a Connecticut Democrat, said Tuesday. “Now is the time to act and vote.”

Some Congress members remained critical of the law as it is projected to cost about $196 billion to pass over the next 10 years.

This while the Social Security Administration is already facing a funding shortfall that would lead to a roughly 20% reduction in benefits for retirees starting in 2025.

social security
Above: Social Security Administration office in Burbank, California. Social Security benefits could be extended for millions of Americans after the House passed a new bill.

VALERIE MACON/AFP via Getty Images

During a public hearing on the bill, Rep. Jodey Arrington, D-Texas Republicansaid Congress should ensure fairness for all public service workers, regardless of the state in which they live. However, he warned against passing the bill without considering how it would impact the funding of the social security system.

“We’re going to accelerate the insolvency of the Social Security trust fund,” Arrington said Tuesday. “We should be responsible in how we do this. We should consider retirees in every state, and we should consider future retirees.”

After the House voted to approve the bill, it will head to the Senatewhere it is also likely to pass.

Before its passage in the Parliament, the law received more than 300 signatures from Democrats and republicans alike. However, the Freedom Caucus broke protocol last week by filing the bill before reversing that decision this week.

“The bill in question extended Social Security benefits to a small group that had been excluded in the past because of provisions about combining those benefits with supplemental pensions from workers in certain fields,” Alex Beene, financial literacy instructor at the University of Tennessee, previously stated Newsweek.

“The proposal was a popular one and won bipartisan support, which makes not addressing it for now all the more puzzling.”