Madam President, I rise today, along with my colleague Senator Brown, to introduce the Social Security Fairness Act. The bipartisan bill would repeal two Social Security provisions that unfairly…
Madam President, I rise today, along with my colleague Senator Brown, to introduce the Social Security Fairness Act. The bipartisan bill would repeal two Social Security provisions that unfairly penalize many public servants in Maine and in other States.
Social Security is the foundation of retirement income for most Americans. This crucial program has made the difference between poverty and a comfortable retirement for millions of seniors. Yet, some teachers, firefighters, police officers, and other public servants often see their earned Social Security benefits unfairly reduced by two Social Security provisions: the windfall elimination provision and the Government pension offset.
The Windfall elimination provision or W-E-P affects public servants who receive a pension from a job where they did not pay into Social Security but who also worked long enough in another job to qualify for Social Security benefits. Due to the WEP, their Social Security benefits are calculated using a different formula, which can reduce their monthly benefits. For workers who become eligible for benefits in 2023, the WEP reduction can be up to $557.50 per month, subject to other adjustments.
The Government Pension Offset GPO affects public servants who receive a pension from a job where they did not pay into Social Security and are also eligible to receive a Social Security spousal or widow(er)'s benefit. However, the GPO reduces Social Security spousal or widow(er)'s benefits by an amount equal to two-thirds of the noncovered pension.
According to the Social Security Administration, in December 2022, more than 2 million people, including nearly 20,500 people in Maine, had their Social Security benefits reduced by the WEP. Similarly, nearly 735,000 people were affected by the GPO in December 2022, including more than 8,100 people in Maine. While the effects of the WEP and GPO are most acute in certain States, including Maine, data from the Social Security Administration indicate that these provisions affect public servants in all 50 States.
Many Maine teachers have spoken with me about how the WEP and GPO affect their retirement security. I recently heard from a special education teacher in Kennebuck who has spent more than 40 years teaching and also held a second job in the private sector to help support her family after becoming a single parent. Due to the WEP, she is concerned about her financial security once she retires. A retiree in Mount Desert also reached out to me recently to share his story. He wants to make sure his wife, who is a public servant, will be taken care of after he is gone. Due to the GPO, he is concerned that any Social Security widow's benefits his wife receives will be substantially reduced.
The bill we are introducing today, the Social Security Fairness Act, would repeal both the WEP and the GPO for Social Security benefits payable after December 2023. This means current Social Security beneficiaries would have their benefits recalculated without applying the WEP and GPO. Teachers, firefighters, police officers, and other public servants currently in the workforce would no longer have to worry about having their Social Security benefits unfairly reduced in the future. Those who are considering careers in public service would no longer have to weigh the potential negative effects of this choice on their future retirement security.
Our dedicated public servants, such as our teachers who help prepare our
children for future success and our police officers who help keep our communities safe, should receive the full Social Security benefits they have earned. It is time for us to take action to address the WEP and the GPO. I urge my colleagues to support the Social Security Fairness Act.
