Thanks to end-of-session action by Congress, about 2.5 million local, state, and federal government employees — mostly teachers, firefighters, and police officers — will have their Social Security benefits restored.
The Social Security Fairness Act, HR 82, was one of the final votes taken Dec. 21 before Congress ended its session Dec. 21. It repeals two earlier rules that reduced Social Security benefits for workers who spend part of their careers in public service.
The details are complicated. To understand it, you need to know that Social Security benefits are paid on a formula that’s based on what employees (and their employers) contributed in payroll tax during their working lives. That benefit formula is “progressive,” meaning that benefits are relatively more generous for lower wage earners. Meanwhile, some state and local government employers provide their own retirement benefits and don’t pay into Social Security. The same was true for permanent civilian federal employees hired before January 1, 1984, who are covered by the Civil Service Retirement System. Up until 1983 for public workers in those programs, Social Security didn’t include their public sector earnings when it calculated their monthly benefits. That meant they would look poorer than they really were, and the formula would give them a relatively more generous Social Security benefits. Then laws passed in 1977 and 1983 created a “Government Pension Offset” and “Windfall Elimination Provision” to reduce the Social Security benefit of workers and their surviving spouses if they were receiving a federal, state, or local government pension based on earnings that weren’t subject to the Social Security payroll tax.
HR 82 repeals those rules. It passed 76-4 in the Senate and 327-75 in the House, and it now awaits President Joe Biden’s signature. It restores as much as $550 a month for some retirees and is retroactive to December 2023. It’s expected to cost about $19 billion a year over the next decade.
Is Fairness Act in effect immediately ? If so, is application necessary?
According to the Social Security Administration (SSA) guidance I have read on line, if you already receive a benefit you do not need to do anything. Your current benefit will automatically adjust to the new amount based on the rules change. However, if you do not currently receive a benefit you will need to apply. You may do so on line at the SSA website or make an appointment with SSA to do it in person. Once Biden signs the bill and it becomes law it will be effective immediately and will be retroactive for current benefits back to 1 January 2024. Keep in mind it will take SSA some time to implement the law so you may not see an immediate change in any benefit that you currently receive.
If these government workers didn’t pay Social Security tax why should they receive benefits…
From what I’ve read they have nice pensions….
You’re right that workers who don’t pay in for at least 10 years aren’t entitled to Social Security retirement benefits. But the workers affected by this legislation DID pay Social Security tax — when they worked other jobs. That’s what the fix is about.
I worked in civil service for 33 years and also other jobs before, during and after. I have been paying into social security on a full time job for the last 11 years. I have earned a monthly allowance from social security of about 1400. I collecting less than $700. Now I will get the full amount I have earned. And that is why it’s called the fairness act
This was the best thing that could happen.I’ve been working since I was fourteen years old non stop!!! I met my years in, Now I work for the school system.It’s been seventeen years,I’ll be 60 in two Months I’m a widow lost my husband in a awful Fire 18 years ago Have three adult sons it was hard but I made this here is the best gift ❤️
All this came about because Saint Ronnie had a issue about double dippers paying into Social Security and their Federal pension and receiving the benefits of both.Ronnie of course was a four flusher receiving a Actors Guild pension, Social Security, California Governor pension, Presidential Federal pension.If you paid you should receive.Two or three hundred dollars is hardly a windfall.There’s trolls on the
Internet having hissy fits but no criticism of billionaires getting away with over generous tax breaks for decades or Senators and Congressman going to The legislature branches with modest worth and coming out with millions made from middle class salaries.They must be fantastic investors.
I have been trying to find out if retired state of Tn. employees will be eligible for the HR 82 benefits.