Public sector workers are on tenterhooks, hoping sometime in the next six weeks the Senate will pass a bill to allow them to receive Social Security benefits they feel they’re entitled to.
Last week, a bipartisan majority of the U.S. House passed the Social Security Fairness Act to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which reduce Social Security benefits for certain retirees who also receive pension income. The bill now awaits a Senate vote for a chance to become law, but only has until Dec. 31 before it dies.
Together, WEP and GPO affect nearly three million Americans including police officers, firefighters, postal workers and public-school teachers.
“Billions of dollars have been withheld from public workers who earned both a public pension and Social Security benefits for the past 50 years,” said Rafael Sanchez, who worked for the state of California for 30 years before moving to Idaho to work in the private sector and pay into Social Security for three years.
How do WEP and GPO affect Social Security benefits?
- The Windfall Elimination Provision (WEP) reduces Social Security for those who receive so-called “non-covered” pension income from jobs, typically public sector roles, that didn’t contribute Social Security payroll taxes. The reduction can be significant – up to half the pension amount.
- The Government Pension Offset (GPO) reduces survivor or spousal benefits if a person’s pension is non-covered….
