US lawmakers are forcing a vote on a bill that would eliminate Social Security rules for Americans who also receive pens

[Omaha Steve]

US lawmakers are forcing a vote on a bill that would eliminate Social Security rules for Americans who also receive pension income — do they stand a chance?

https://www.msn.com/en-us/money/retirement/us-lawmakers-are-forcing-a-vote-on-a-bill-that-would-eliminate-social-security-rules-for-americans-who-also-receive-pension-income-do-they-stand-a-chance/ar-AA1sY8FL

Story by Chris Clark • 4h

In a move that could significantly impact the retirement income of millions of Americans, a bipartisan group of U.S. lawmakers is pushing to repeal a set of Social Security rules that reduce benefits for individuals who also receive pension income from certain public service jobs.

The proposed legislation, known as the Social Security Fairness Act, would erase the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have long been criticized for penalizing public servants and their spouses with pensions. The WEP is believed to reduce benefits for about 2 million Americans, while the GPO rule affects about 800,000 Americans.

Understanding the WEP and GPO
The WEP and GPO were enacted in the 1980s to prevent what was perceived as "double-dipping" by individuals who earned pensions from jobs not covered by Social Security while also accruing Social Security benefits through other employment. The WEP reduces Social Security benefits for individuals who get a pension from a job that didn’t require them to pay taxes into the program (despite having worked other jobs that did), while the GPO cuts spousal and survivor benefits for those receiving a government pension.

Critics say the provisions disproportionately affect teachers, police officers, firefighters and other public sector professionals who dedicated their careers to service but often lacked the option to participate in Social Security. They contend the current rules significantly reduce retirement income, leaving many retirees struggling to make ends meet.

FULL story at link above.

[Polly Hennessey]

1. Hmmmm, hope it passes.