A last-minute Senate vote approved a long-awaited measure that will enhance millions of Americans’ Social Security pensions.
It’s called the Social Security Fairness Act. In summary, it restores benefits that had been decreased or lost for decades for teachers, police officers, firefighters, and other public employees who also earn a pension.
Until today, persons who worked in the public sector were not eligible for full Social Security payments if they had previously contributed in the private sector. Why? Because of a rule known as the Windfall Elimination Provision.
It sounds complex, but it simply means that in order to avoid a bogus “double benefit,” they lowered the amount you were entitled to in your Social Security payment.
How will this Social Security change work?
To give you an idea, this inequality has impacted thousands of teachers, mail carriers, police officers, and firefighters for over 50 years. After years of working in the private sector and contributing to Social Security, retirees may not get full benefits due to a public pension. Doesn’t that sound unfair?
With this policy, pensioners who worked in both the public and private sectors will be able to earn their full Social Security payment. But not only that:
- The spouses of these workers will also be eligible to receive the entire reward if their partner dies.
- The conditions are equalized With those of someone who has only worked in the private sector.
A change that has been pending for a long time
The House of Representatives adopted this proposal in November, and the Senate passed it last weekend by a vote of 76 to 20. Four senators decided not to vote.
Why were there votes against?
Not everyone is pleased with this reform. Those who voted against argue that this move will exacerbate the already precarious status of the Social Security trust fund.
And it is true that the cost is significant: $196 billion. The Social Security fund is expected to become insolvent in around ten years unless reforms are done. This increased expense might push the deadline up by nearly six months.
However, many argue that this reform corrects a historical inequality that should never have existed.
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