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BobKamman
Level 15
December 16, 2024

Social Security Fairness Act

  • December 16, 2024
  • 3 replies
  • 13 views

I'm surprised no one has mentioned this -- including my clients who would be affected.  I never really understood how the WEP and GPO worked.  I have clients who are retired government workers and did not pay into Social Security for much of their working life.  But it always seems to me that some of them get more SS than they should anyway, and others get too little.  

One article says that 28 million SS beneficiaries would be affected by this bill.  The Senate is still trying to find time to vote on it this week.  It needs 60 votes, so passage is not certain.  It's a budget buster, but who cares?

On November 12, 2024, the House passed H.R. 82, the Social Security Fairness Act of 2023, by roll call vote, 327-75, under suspension of the rules. The bill now moves to the Senate for consideration. The Senate companion bill, S. 597, is pending in the Committee on Finance.

H.R. 82, as passed by the House, would:

  • repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) provision, both of which can reduce Social Security benefits when someone receives a pension based on work that was not covered by Social Security; and
  • apply with respect to benefits payable for months after December 2023.

    3 replies

    qbteachmt
    Level 15
    December 16, 2024

    "The WEP impacts about 2 million Social Security beneficiaries and the GPO nearly 800,000 retirees"

    From CBS. 

    Don't yell at us; we're volunteers
    BobKamman
    BobKammanAuthor
    Level 15
    December 17, 2024

    I might have mistaken the decimal point for a flyspeck

    BobKamman
    BobKammanAuthor
    Level 15
    December 18, 2024

    It looks like the Senate is going to pass this and send it to the President.  If you aren't ready to identify and advise clients who are subject to WEP and GPO, now would be a good time to start your education.  

    Taxes-by-Rocky
    Level 7
    December 21, 2024

    I suspect WEP and GPO were originally put in place for a reason (so no one gets to double dip).

    Sure, you may have paid in to both over time and perhaps that should be considered in your benefit. 

    It will be interesting to see how the law plays out considering the way plans are structured today.

    abctax55
    Level 15
    December 22, 2024

    Personal example:

    My husband worked as a firefighter for 30 years.

    He also worked for ten year in the private sector, paying into SS for long enough to qualify to receive Social Security.

    His SS benefits have been cut in half because of his FD pension.

    What he paid into SS for forty quarters wasn't 'cut in half' because he also worked for the Fire Dept.

    I don't view this as 'double dipping'. 

     

    HumanKind... Be Both
    BobKamman
    BobKammanAuthor
    Level 15
    December 31, 2024

    The White House has sent out invitations to watch the bill being signed into law on January 6. 

    (Why does that date sound familiar?)  

    BobKamman
    BobKammanAuthor
    Level 15
    January 5, 2025

    Signed Sunday afternoon, January 5, because a snowstorm is expected to shut down the city on Monday. 

    Social Security Administration is expected to soon publish more details about the law’s implementation on its website. I thought this was retroactive only to January 2025, but apparently people will receive a year's worth of back pay.  "The amendments made by this Act shall apply with respect to monthly insurance benefits payable under title II of the Social Security Act for months after December 2023."