After Senate Majority Leader Chuck Schumer (D-NY) announced he would put a plan to a vote that may increase their Social Security payments, public sector employees are feeling more optimistic.
Last month, the House passed a bill to remove the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), which lower Social Security benefits for those seniors who also get pension income.
With 62 co-sponsors, the Social Security Fairness Act appears to have the support of a filibuster to pass the Senate as well.
To the annoyance of public sector employees, it has instead stalled there. On Wednesday, they gathered in the rain at the Capitol to demand that Schumer put the bill to a vote. The measure expires at the end of the year if it is not passed.
Nearly 3 million Americans, including public school teachers, firefighters, police officers, and postal workers, are impacted by WEP and GPO together.
“I am here to tell you, we are going to call the vote,” Schumer said in a quick speech to the crowd.
Schumer followed through on his promise to advance the Act by seeking to close discussion on Thursday morning. He also informed senators that next week they would cast their votes.
In what ways do GPO and WEP reduce Social Security benefits?
For people who earn so-called “non-covered” pension income from jobs—usually in the public sector—that did not contribute Social Security payroll taxes, the Windfall Elimination Provision (WEP) lowers Social Security. The amount of the pension may be cut by as much as half.
If a person’s pension is not covered, the Government Pension Offset (GPO) lowers spousal or surviving benefits. Less persons are impacted by GPO, but the Social Security payout is reduced by two-thirds of the pension amount. Your Social Security benefit may be lowered to zero if two-thirds of your government pension exceeds it.
Democrats are in, according to Schumer. How about Republicans?
“We need 15 Republicans — let’s get them — and we’re going to have the vote,” Schumer told the crowd, while ensuring that Democratic senators will honor their pledge to support the bill.
A hopeful but cautious approach
Retirees in the public sector are encouraged by Schumer’s remarks, but they are not counting on the bill’s approval.
Susan Dixon, 68, a retired educator from San Clemente, California, and president of the California Retired Teachers Association, stated, “I will be sending another request to all 100 senators to vote yes…when it comes to the floor vote.” She went to the rally in Washington, D.C., with a group.
A group of voters traveled from Massachusetts to deliver GPO information to each senator’s office prior to the event.
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Is the Fairness Act for Social Security equitable?
According to policy experts, the restrictions were designed to stop Social Security from overpaying workers in non-covered pension occupations. Individuals who make money outside of Social Security may appear to be low earners.
Proponents of the rules contended that those who received healthy government salaries for decades would have the same advantage in Social Security calculations as long-term low-income workers because Social Security replaces a larger percentage of prior earnings for low-paid workers than for higher-paid workers.
Many retirees from the public sector contend that they held private sector jobs in addition to their pension positions. They paid into the system and are eligible to receive their full Social Security benefits upon retirement since Social Security taxes were automatically deducted from their paychecks from private jobs.
The Social Security Fairness Act isn’t the solution, but most policy analysts concur that something can be done to strengthen Social Security for these workers.