In the Senate, there has been a lot of talk lately about a new Social Security bill that could have a huge effect on benefits. It did not take long for the Senate to get past its first procedural problem and start debating the Social Security Fairness Act.
They hope to pass it later this week. If the bill is passed before Congress leaves this week, it could mean that some Americans will get more money from Social Security. The bill would get rid of the Government Pension Offset and the Windfall Elimination Provision.
First breakthrough to extend Social Security benefits
Supporters say that changing tax laws is necessary to keep millions of public employees’ benefits from being cut unfairly. But some experts are worried about the plan because they say that the rules it aims to change are meant to keep some beneficiaries from getting both their pensions and Social Security benefits that are bigger than what they were entitled to. There are people on both sides of the aisle who support the law. It passed the House with wide support.
One of them is Sen. Mike Braun (R-Ind.), a well-known fiscal conservative who was just elected as the next governor of Indiana. When asked how much the plan would cost, Braun told The Hill on Wednesday that he would vote for it because it is fair.
Senator Braun also said that he usually would not back a policy that did not have a way to pay for it. In the same way, Senate Majority Leader Chuck Schumer (D-N.Y.) pushed for the bill on Wednesday, saying that it would make sure that no American who has paid into Social Security is wrongfully denied their benefits.
Chuck Summer also said that the Social Security Fairness Act will be voted on this afternoon. This bill gets rid of two unfair practices that keep many Americans from getting their benefits after working as teachers, firefighters, postal workers, or in other public jobs.
Republicans have said they are worried about how this might affect the program’s end date. Sen. Rand Paul (R-Ky.) told The Hill on Wednesday that he thinks it is unfair to people who are already getting Social Security to make the program bigger when it is almost bankrupt.
The Congressional Budget Office says that the bill will cost more than $190 billion over ten years. In a letter sent last month, it was also said that the social security trust funds might run out six months earlier than they would under current law if the plan were to be passed.
Beneficiaries won’t be able to retire at 65 anymore in 2025
Based on the most recent news about Social Security benefits, we know that the full retirement age (FRA) will go up again next year. Many people in the U.S. think that 65 is the average age to retire, but Social Security’s real full retirement age (FRA) is higher than that age and will likely go over it again in 2025.
The FRA looks at a worker’s earnings and work history to decide if they are eligible for full Social Security benefits. According to CBS News, an employee’s retirement benefits will go up based on their income and length of service.
In 1983, Congress made this gradual increase in the FRA to account for the fact that Americans are living longer. The FRA has gone up by two months every year since it began at age 65. Last year, people born in 1957 reached the age of 66 years and 6 months when they could retire.
People who were born in 1958 will have to be 66 years and 8 months old by September 2024 in order to get full Social Security benefits.
Now that the FRA has been raised again, it will be 66 years and 10 months for people born in 1959. With this change, people in this group will be able to start getting their full Social Security benefits in 2025.
Because of this, experts tell workers who are getting close to retirement to think carefully about when to apply for Social Security. When making this choice, you should think about your expected costs, extra retirement money, and your health.
If retirees know about these FRA changes, they can make the most of their money after they stop working. Planning for retirement, which is getting harder as time goes on, is still important for long-term financial stability.
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