A last-minute Senate vote approved a long-awaited reform that will increase millions of Americans’ Social Security pensions. It’s called the Social Security Fairness Act.
In short, it restores benefits that had been reduced or eliminated for decades for teachers, police officers, firefighters, and other public employees who also receive a pension.
Until now, those who worked in the public sector were not eligible for full Social Security benefits if they had previously contributed in the private sector. Why? Because of a rule known as the Windfall Elimination Provision.
It sounds technical, but it simply means that in order to avoid a bogus “double benefit,” they reduced 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.
Imagine working for years in the private sector, contributing to Social Security, and then discovering that when you retire, you are not paid the full amount you are entitled to because you also have a public pension. Doesn’t that sound unfair?
With this measure, retirees who worked in both the public and private sectors will be able to receive their full Social Security benefit. But not only that:
- The spouses of these workers will also be able to receive the full benefit if their partner passes away.
- The conditions are equalized with those of anyone who has worked solely in the private sector.
A change that has been pending for a long time
The House of Representatives approved this measure in November, and the Senate passed it this weekend by a vote of 76 to 20. Four senators decided not to vote.
Why were there votes against?
Not everyone is happy with this reform. Those who voted against argue that this decision will worsen the situation of the Social Security fund, which is already in a delicate position.
And it’s true that the cost is not small: $196 billion. Currently, it is estimated that the Social Security fund will be insolvent in about 10 years unless changes are made. This new expense could bring that deadline forward by about six months.
But, on the other hand, many defend that this reform corrects a historical inequality that should have never existed.
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