The Senate passed a landmark bill early Saturday aimed at boosting Social Security payments for millions of people, marking a major step forward for former public employees in the final days of the year’s legislative session. The bipartisan bill, which now heads to President Joe Biden for final approval, will eliminate reductions to Social Security benefits for nearly 3 million people who receive pensions from work in federal, state, and local government or public service jobs, including teachers, firefighters, and police officers. Advocates argue that the Social Security Fairness Act corrects a longstanding inequity but note that it could further strain Social Security Trust Funds.
The legislation, years in the making, was pushed through in the closing moments of the current Congressional session. The bill passed with broad support, receiving votes from all Senate Democrats and 27 Republicans, securing a 76-20 vote in favor.
“Millions of retired teachers, firefighters, letter carriers, and other public service workers have waited decades for this moment. No longer will they see their hard-earned Social Security benefits reduced,” said Senate Majority Leader Chuck Schumer (D-N.Y.).
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The bill repeals two provisions— the Windfall Elimination Provision and the Government Pension Offset— that reduce Social Security benefits for individuals who also receive retirement pensions from public service employment. These provisions had long been criticized for unfairly penalizing workers who dedicated their careers to public service.
“Social Security is the bedrock of our middle class. It’s retirement security that Americans earn over a lifetime. These workers serve the public, protect our communities, and teach our children. They’ve paid into Social Security just like everyone else,” said Sen. Sherrod Brown (D-Ohio), a key proponent of the bill.
Those affected by the reductions will soon see an increase in their monthly Social Security payments. However, the change is expected to add an estimated $195 billion to federal deficits over the next decade, according to the Congressional Budget Office. The Social Security Trust Funds were already projected to face shortfalls by 2035, and this change is expected to hasten that timeline by about six months. For example, a typical dual-income couple retiring in 2033 could see a $25,000 lifetime reduction in their benefits, according to the Committee for a Responsible Federal Budget.
While many opponents of the bill acknowledged the unfairness of the current system, they expressed concerns over the program’s sustainability, given the looming financial challenges of Social Security.
“We caved to the pressure of the moment instead of addressing this issue in a sustainable way,” said Sen. Thom Tillis (R-N.C.), who voted against the bill.
The changes will also put additional strain on the Social Security Administration, which is already facing staffing shortages. The agency currently employs about 56,400 workers, the lowest number since 1972, despite serving more people than ever before. The government’s stopgap funding bill passed alongside the Social Security bill did not include additional funds for the agency, which is in a hiring freeze.
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Republican supporters of the bill argued that it was a rare opportunity to address what they called an unfair provision in federal law that penalized public service retirees.
“They’ve earned these benefits. This is an unfair, inequitable penalty,” said Sen. Susan Collins (R-Maine).
While some Republican lawmakers supported the bill, they also emphasized the need for further work to ensure the financial stability of Social Security. President-elect Donald Trump has pledged not to cut Social Security benefits during his term, though his administration is looking to implement budget cuts elsewhere. Senate Republicans are expected to continue exploring ideas for reforming Social Security, but such reforms would likely involve scaling back benefits. One proposal, from fiscal conservative Sen. Rand Paul (R-Ky.), sought to gradually raise the Social Security retirement age to 70, though it received minimal support.
“There’s so much riding on getting this right and having the courage to fix Social Security in the coming years,” said Sen. Tillis. “If we fail, we will regret it.”
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