The SS Fairness Act is currently under consideration in Congress and if passed, Americans will experience a shift in how Social Security benefits will be calculated and distributed in the United States. The Fairness Act has affected individuals and families across the U.S with regards to their social security payment. However, with this Act under consideration by the congress, most Americans will see changes in their social security payment.Â
What is the Social Security Fairness Act
The Social Security Fairness Act was set up to address the felt inequities in the social security system, especially, concerning the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP which was enacted in 1983 reduces social security payment of workers who have or have had various sources of income but pay into social security with only one source of income. On the other hand, the Government Pension Offset enacted in 1977 reduces the social security spousal benefits of spouses that receive pension from other sources like the local, state or federal government based on another employment which did not contribute to their social security. However, the goal of the Fairness Act currently under consideration by Congress is to eliminate any of such reductions ensuring that individuals and families receive their full social security benefits.
Who will benefit from the SS Fairness Act?
1. Public sector workers
One of the primary groups affected by the SS Fairness Act are the public sector workers. Many of these public employees such as teachers, police officers, and firefighters may have worked in jobs that did not contribute to Social Security but were covered by a pension system but with the current system their social security benefits are reduced because the WEP and GPO is still considered relevant. However, when the Congress passes the SS Fairness Act, the social security benefits of most of these public employees will be increased.Â
2. Teachers and education professionals
Teachers and other education professionals, especially those in states with independent pension systems will be among those who will see a significant change in their social security benefits. Many individuals in the educational sector are affected by WEP which has reduced their SS payment. When the WEP is removed these ones will stand a chance of receiving higher benefits from the Social Security Administration (SSA).
3. Workers with mixed employment history
Americans who have worked or are working in jobs covered by social security or jobs not covered by social security will also benefit if the WEP and the GPO is removed. With the current system, workers with a mixed employment history experience a reduction due to WEP especially if they have a pension system from employment not covered by social security. However, when the Act is passed, WEP will be removed resulting in higher benefits for workers with a mixed employment history.
4. Retirees with long service in non-social security jobs
Retirees who have worked for many years, especially in jobs that are not covered by social security are affected with the current system but will experience changes in their social security payments if the SS Fairness Act goes through by the congress.Â
What is the impact of the Fairness Act on Social Security benefits
1. Increased benefit payments
If the SS Fairness Act is passed by congress, many individuals and families who were previously affected will see an increase in their social security benefits. By addressing the issues of the WEP and GPO, the Act would allow all eligible individuals who receive their social security to get full benefits from the SSA without any deductions as a result of WEP or GPO.
2. Fairer benefit distribution
The Act will make sure that the SS benefits are distributed across the United States to eligible families and individuals accordingly even to those who were employed or are currently employed by firms or organizations not covered by social security.
3. Improved retirement security
When social security payments are increased with the enactment of the SS Fairness Act, retirees will experience a good standard of living and financial security.
