New Social Security Law Will Change Everything About Benefits – It Will Affect Checks, Too

There are some changes coming to Social Security that the affected beneficiaries will really appreciate. The House is finally addressing two provisions that have been making life hard for some individuals, the 1983 Windfall Elimination Provision and 1977 Government Pension Offset Provision. In short, these provisions prevent workers from receiving full benefits, but there is more to it.

The Windfall Elimination Provision or WEP is, according to the Social Security Administration (SSA) “a formula used to adjust Social Security worker benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security–covered earnings. A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically, state and local governments or non-U.S. employers. Congress passed the WEP to prevent workers who receive non-covered pensions from receiving higher Social Security benefits as if they were long-time, low-wage earners.”

The Government Pension Offset Provision or GPO “adjusts Social Security spousal or widow(er) benefits for people who receive “non-covered pensions.” A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically, state and local governments or non-U.S. employers. Congress created the GPO in 1977 to help ensure that spousal and widow(er) benefits of those with covered or non-covered lifetime earnings would be roughly equal. […] The GPO reduces the spousal or widow(er) benefit by two-thirds of the monthly non-covered pension and can partially, or fully, offset an individual’s spousal/widow(er) benefit, depending on the amount of the non-covered pension.” As the SSA explains.

While this was a good idea in principle and when it was implemented, times have changed, and pensions are not the same as they were when the rules were created. Nowadays this rule means that workers or widowed spouses that have worked in both the private and the public sector get a much lower pension that is not enough to sustain them when they should be able to get a higher amount of money based on their (or their spouse’s) record.

The Social Security Fairness Act of 2023, also known as H.R. 82, would amend Title II of the Social Security Act, eliminating the WEP and the GPO and allowing public workers to receive their full benefits regardless of their jobs and how their Social Security is paid into.

The passing of The Social Security Fairness Act

Sponsored by Reps. Garrett Graves (R-LA) and Abigail Spanberger (D-VA) and supported by Sens. Sherrod Brown (D-OH), Susan Collins (D-ME) as well as House Speaker Mike Johnson (R-LA) amongst many others, the Social Security Fairness Act had a good chance of passing due to enormous bipartisan support. It is likely the act will pass in a voice vote, but if a recorded vote is requested, passage will require two-thirds of the vote rather than a simple majority.

The nonpartisan Congressional Budget Office put a bit of damper on the bill by stating that, should it pass, repealing the WEP and GPO will cost roughly $196 billion over the next decade, putting increased financial pressure on the Social Security program that is already strained. However, testimonials from law enforcement workers, firefighters, and public servants who have all had their full benefits withheld, speaking out about how they had been affected by the WEP and GPO provisions that were brough in June may have swayed enough members to avoid needing a super majority.

Once it clears the House, the Senate will have to vote on the measure. There is not expected resistance due to the popular nature of the measure, and if it passes and gets signed into law nu the president, it would be effective for benefits payable after December 2023.

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