New Social Security Law Set to Boost Benefits for Over 2 Million People

The Senate recently passed the Social Security Fairness Act, a significant piece of legislation aimed at expanding Social Security benefits for millions of Americans, including those with pensions. This bill, which eliminates two provisions that reduced benefits for certain public-sector workers, is expected to have a broad impact across the nation, including in California.

What to Know About the Social Security Fairness Act in California:

  1. Impact on Public-Sector Workers: The bill will affect over 2 million Social Security recipients nationwide, including many in California who work or have worked in public-sector roles like teaching, law enforcement, and other government positions. These workers, who were exempt from paying Social Security taxes due to their pension plans, often faced reduced benefits under the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
  2. Windfall Elimination Provision (WEP) Repeal: The WEP reduction previously affected those who worked in both public-sector jobs with pensions and private-sector jobs that paid into Social Security. By repealing this provision, beneficiaries can expect to see an increase in their monthly Social Security checks, with an estimated $360 bump starting in December 2025.
  3. Government Pension Offset (GPO) Repeal: The GPO had a similar impact on spousal Social Security benefits for public-sector workers who were not paying into Social Security through their government job. Repealing this provision ensures that spouses of workers in these roles will receive the full amount of Social Security they are entitled to without being penalized for their spouse’s pension.
  4. California’s Stake: California, with its large public workforce, will see a significant number of workers and retirees benefiting from this change. With many Californians working in government jobs or public services, the removal of these provisions is seen as a major victory for those who felt their pension and Social Security benefits were unfairly reduced.
  5. Cost and Implications: While the bill has widespread support, including from both major political parties, it comes with a hefty price tag. The Social Security Fairness Act is projected to cost $196 billion over the next 10 years and could increase Social Security’s long-term solvency issues. Nevertheless, the bipartisan support suggests a broad consensus on the fairness of the measure.

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This bill is expected to be signed into law soon, offering much-needed relief to millions of public-sector workers and retirees across California, ensuring they can enjoy their full Social Security benefits alongside their pensions.

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Alton Walker

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