Schumer Champions Vote to Increase Social Security for Public Workers: Holiday Boost Ahead!

Public sector employees are encouraged after Senate Majority Leader Chuck Schumer (D-NY) announced his intention to call a vote on a legislative proposal aimed at increasing their Social Security benefits.

Last month, the House passed a bill designed to abolish the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which currently reduce Social Security payments for certain retirees also receiving pension benefits. The bill, known as the Social Security Fairness Act, boasts 62 co-sponsors, indicating it has enough support to overcome a Senate filibuster and be passed. However, it has been stalled in the Senate, much to the dismay of public sector workers who organized a rally in the rain at the Capitol on Wednesday to urge Schumer to schedule the vote. If the bill is not passed by the end of the year, it will be nullified.

The WEP and GPO together impact almost 3 million Americans, including law enforcement officers, firefighters, postal employees, and public school educators.

Addressing the rally briefly, Schumer declared, “I am here to tell you, we are going to call the vote.”

True to his word, on Thursday morning, Schumer made a procedural move to end debate on the Act, pushing it towards a vote. He also informed Senators that they would be voting the following week.

Understanding How WEP and GPO Reduce Social Security Payments

• The Windfall Elimination Provision (WEP) decreases Social Security for individuals who receive “non-covered” pension income from jobs, primarily in the public sector, where Social Security payroll taxes were not deducted. This reduction can be substantial, amounting to as much as half of the pension.
• The Government Pension Offset (GPO) diminishes survivor or spousal benefits for those with non-covered pensions. The GPO affects fewer people than the WEP, but it slashes Social Security benefits by two-thirds of the pension amount. If this two-thirds exceeds the Social Security payment, the benefit might be reduced to zero.

Schumer Assures Democratic Support, Seeks Republican Votes

Schumer assured the audience that Democratic senators would vote in favor of the bill, but emphasized, “We need 15 Republicans — let’s get them — and we’re going to have the vote.”

Last week, Senator Angus King (I-ME) mentioned to USA Today that the bill seemed short on votes for passage, suggesting some Republican senators might have withdrawn their support.

Optimistic Yet Vigilant

Schumer’s pledge gives retired public sector workers hope, but they remain proactive in ensuring the bill’s passage.

“I will be sending another plea to all one hundred senators to vote yes when the bill reaches the floor,” stated Susan Dixon, 68, a retired teacher from San Clemente, California, and president of the California Retired Teachers Association. She traveled with a group to the rally in Washington D.C.

“Additionally, I am collaborating with the National WEP GPO Task Force, and we are launching a legislative alert for constituents,” she added after the rally.

Prior to the rally, a contingent from Massachusetts visited and distributed GPO-related materials to every Senator’s office.

“There’s a lot of discussion about WEP, impacting firefighters, police officers, and teachers,” explained Nadia Milleron, a participant from Massachusetts. “However, there’s less awareness about the GPO and its effect on low-income public workers, predominantly women. When their spouse passes away, they receive none of his Social Security because of their public sector employment. This is deeply distressing and thrusts people into severe poverty.”

Is the Social Security Fairness Act Truly Fair?

The measures were initially implemented to prevent overpayments by Social Security to individuals with non-covered pension jobs, according to policy experts. These individuals may appear as lower earners since their earnings were not part of the Social Security system.

Since Social Security replaces a higher fraction of earnings for lower-wage workers than for higher-wage workers, individuals who have drawn substantial government salaries would benefit from the same Social Security formula as long-term low-income earners, argue proponents of the existing rules.

Many public sector retirees contend that besides their pensionable jobs, they also worked in the private sector where Social Security taxes were deducted from their paychecks, thus they have rightly paid into the system and deserve their full retirement benefits.

“I am not receiving the Social Security I paid for,” expressed Barbara Mahaffey, 70, from Chillicothe, Ohio. “It’s a misconception that I’m double-dipping. Most of us in public service had to work additional jobs to make ends meet over the years. We chose public service roles to help others…The WEP unfairly cuts my Social Security income.”

While most agree that adjustments could enhance Social Security for these workers, critics argue that the Social Security Fairness Act might not be the ideal solution.

According to the bipartisan nonprofit Committee for a Responsible Federal Budget, repealing WEP and GPO would cost $196 billion over the next decade, hasten the insolvency of Social Security by approximately six months, and exacerbate the automatic benefit reductions when they occur.

In November, the U.S. budget deficit increased by 17% to $366.8 billion from the previous year, with the total for the first two months of the fiscal year rising over 64% compared to the same period last year, reported the Treasury.

Several research groups, including the Bipartisan Policy Center, advocate for replacing the WEP with a “proportional formula” for calculating Social Security, which would allow retirees to receive benefits based on the proportion of their earnings covered by Social Security.

“Proponents of the bill portray it as a means to assist struggling seniors, but the primary beneficiaries would be a wide array of mostly well-compensated government retirees,” commented Gary Brewer, 67, a retired accountant from Sacramento, California, not affected by WEP or GPO. “The rationale for these provisions is solid and undeniable…If this generosity were without cost, it would be less controversial, but it will be financed by the rapidly depleting Social Security Trust Fund.”