Big Changes Coming: Immigrants Could See Social Security Cuts in 2025. Many were optimistic that the Social Security Fairness Act would quickly pass the Senate once it passed the House of Representatives. Unfortunately, it appears to be moving more slowly than we had hoped, and many people are now concerned that, as a result of the two clauses the Act seeks to abolish, they may have to live another year with a pension that is less than what they are entitled to.
In order to reduce Social Security worker benefits for individuals who receive “non-covered pensions” and are eligible for Social Security benefits based on other Social Security-covered earnings, the Act addresses the Windfall Elimination Provision (WEP). A non-covered pension is one that is paid by an employer—usually state and local governments or employers outside of the United States—that does not deduct Social Security taxes from your pay. Additionally, it seeks to eliminate the Government Pension Offset (GPO), which modifies Social Security benefits for widows or spousal recipients of “non-covered pensions.”
The Social Security Administration (SSA) put these provisions in place to try to prevent workers who were eligible for benefits and a pension from receiving a much higher Social Security benefit than would be fair. However, this was back when pensions were strong and would actually support a person during retirement; today, this is not the case, and in certain situations, teachers, police officers, firefighters, and other pensioned workers must work two jobs to make ends meet, which will prevent them from receiving the proper Social Security benefits.
However, this also impacts a different group of people that many people don’t consider: Americans who have lived and worked overseas for a period of time and are eligible for a pension, or international workers who have paid into Social Security but still receive income from a prior overseas job. These laws also apply to these taxpayers, and having their benefits cut due to overseas pensions that frequently fall short of their needs can have a negative impact on their quality of life.
How the WEP repeal would help Immigrants access to Social Security benefits
Each person’s situation is unique, but for those who are struggling these days due to drastically reduced Social Security benefits, repealing these provisions would help them make ends meet. After all, as lawmakers supporting the bill have reminded those opposed to it, beneficiaries are not requesting additional benefits; rather, they are requesting that their legitimate contributions to the Social Security program be returned in the form of benefits to which they are legally entitled.
However, the situation may not be as bad for them depending on which country they are receiving their additional pension from. The United States has bilateral agreements with some countries that permit combining work periods, which can help immigrants meet the minimum requirements and access a higher benefit—still within the amount they are entitled to based on their record—without having to go through as many formalities.
Verifying whether their home countries have agreements with the US government is crucial for migrant workers. This could ensure a more secure retirement and prevent large benefit losses. To learn how to make the most of the resources available, it is also a good idea to speak with Social Security directly or seek advice from specialists.