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What exactly is the proposed Social Security Expansion Act?

Annie Abella by Annie Abella
November 14, 2024
in Finance
0
What exactly is the proposed Social Security Expansion Act?

In a significant move toward Social Security reform, the U.S. House of Representatives is set to approve a bipartisan bill that would ensure full Social Security benefits for workers who also receive pensions. The measure has gathered strong bipartisan support, including nearly 300 co-sponsors from both major parties, despite facing opposition from some factions, notably the conservative House Freedom Caucus. This article outlines the bill’s provisions, its path through Congress, and its potential impact on retirees.

Key Provisions of the Proposed Social Security Bill

The bill seeks to address two long-standing provisions of the Social Security Act that reduce benefits for certain retirees. These provisions, the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), affect workers who qualify for Social Security but also receive pensions from government or certain other non-Social Security-covered employment.

Government Pension Offset (GPO): This provision reduces Social Security benefits for spouses, widows, and widowers who also receive government pensions. The reduction is applied to spousal and survivor benefits, which can significantly reduce income for beneficiaries.

Windfall Elimination Provision (WEP): This provision affects individuals who qualify for Social Security but also receive a pension from a job not covered by Social Security, like certain state and local government positions. It can reduce Social Security payments, often by hundreds of dollars each month.

By repealing these provisions, the bill aims to restore full Social Security benefits to affected retirees, enhancing financial security for millions.

Unprecedented Use of a Discharge Petition to Move the Bill Forward

The bill’s sponsors, Rep. Garrett Graves (R-LA) and Rep. Abigail Spanberger (D-VA), took a bold approach to bring this legislation to the House floor. They used a rarely invoked procedure known as a discharge petition, which allows lawmakers to bypass standard committee processes if they can gather a minimum of 218 signatures from House members. This approach is often considered a challenge to House leadership’s authority over the legislative schedule.

Despite this challenge, House Speaker Mike Johnson ultimately supported the bill, helping it advance to the House floor. The bill’s momentum is partly due to the urgency of passing it before the incoming Congress is seated, a time often referred to as a “lame-duck” period where departing lawmakers have little to lose.

Opposition from the Freedom Caucus

Efforts to pass the bill encountered resistance from the House Freedom Caucus, a group of conservative representatives who prioritize fiscal conservatism. Led by Rep. Andy Harris (R-MD) and former chairman Rep. Bob Good (R-VA), the caucus attempted to delay the bill by utilizing a routine session on Election Day to halt its progress. They argued that repealing the GPO and WEP would increase the federal deficit by approximately $196 billion over the next decade, as estimated by the nonpartisan Congressional Budget Office.

However, bill proponents argue that the financial burden imposed by these provisions is unjust, as it disproportionately affects individuals who have earned retirement benefits in both public and private sectors.

Challenges in the Senate: Will the Bill Make it to the President’s Desk?

While the House is likely to approve the bill with bipartisan support, it faces an uncertain future in the Senate. The bill requires significant backing from both parties to pass in the Senate, where some lawmakers remain divided over the financial implications of repealing the GPO and WEP.

If the Senate reaches a consensus, the final step would be for President Joe Biden to sign the bill into law. Should it pass, the changes will apply to Social Security benefits starting after December 2023.

Potential Impact on Social Security Recipients

For retirees affected by the GPO and WEP, this bill could bring much-needed relief. Restoring full Social Security benefits would benefit an estimated two million workers, including teachers, firefighters, police officers, and other public sector employees. The bill’s sponsors and supporters argue that the change would ensure a fairer system, particularly for those who served their communities in non-Social Security-covered roles.

In conclusion, the proposed Social Security reform bill has garnered widespread bipartisan support in the House and represents a concerted effort to address long-standing inequities in the Social Security system. Although it faces an uphill battle in the Senate, the bill’s passage would mark a significant victory for millions of retirees. If signed into law, the bill would provide much-needed financial relief for those whose benefits have been limited under existing provisions.

Reference Article

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