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Overhaul of Social Security to Reinstate Full Benefits for Public Workers



Overhaul of Social Security to Reinstate Full Benefits for Public Workers

Overhaul of Social Security to Reinstate Full Benefits for Public Workers. Public workers enrolled in pension plans, while also contributing to Social Security through their employment, often face reduced benefits. However, legislative developments suggest a potential shift in this landscape.

The proposed Social Security Fairness Act aims to eliminate the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

These provisions currently diminish regular Social Security benefits for workers and their eligible family members who receive a pension based on earnings from non-Social Security-covered employment, as outlined in a recent Congressional Research Service report.

Coverage Disparities: Uncovering the Numbers

Approximately 6% of workers, engaged in paid employment or self-employment, remain outside the coverage of Social Security. Notably, state and local government employees under alternative staff-retirement systems constitute a significant portion of this group.

Under the GPO, Social Security benefits may be reduced by two-thirds of a government pension, potentially resulting in zero benefits if the pension surpasses the Social Security amount. Public employees, constituting about 4% of workers in non-covered jobs, are disproportionately affected, with nearly one-quarter of active state and local government employees falling under this category.

Worker Perspectives: Balancing Benefits

While some argue for access to benefits from jobs contributing to Social Security, even if they receive part of a public pension, concerns regarding the financial implications of such changes arise.

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Financial Implications: A $150 Billion Question

Fully repealing the WEP and GPO rules is estimated to cost around $150 billion over the next decade, according to the Center on Budget and Policy Priorities (CBPP). However, this change presents a challenge, as it lacks offsetting tax increases or spending cuts, potentially accelerating the trust fund’s reserve depletion from 2035 to 2034, or possibly sooner.

Another concern involves potential overcompensation for workers engaged in both traditional and non-traditional occupations, disrupting Social Security’s progressive benefit formula.

COLA Increases and Retirement Worries

The 3.2% increase in Social Security and Supplemental Security Income (SSI) benefits in 2024, announced by The Senior Citizens League (TSCL), brings additional monthly income for beneficiaries. However, concerns linger among retirees, with 68% worrying that the increase may not keep pace with rising costs.

Higher incomes resulting from substantial Cost of Living Adjustment (COLA) increases over the past three years raise worries about potential benefit cuts. For 59% of respondents, Social Security benefit cuts emerge as the primary concern.

The TSCL warns that increased incomes might impact seniors’ eligibility for low-income assistance programs like SNAP and rental assistance. This comes alongside the conclusion of federal emergency COVID assistance for SNAP and Medicaid earlier this year.

Managing Finances in Retirement

For those contemplating retirement or already retired, addressing debt with a personal loan at a lower interest rate could alleviate financial burdens. Credible offers a platform to compare multiple personal loan lenders and find the best interest rates for your situation.


The proposed Social Security reform holds the potential to rectify benefit disparities for public workers. While the financial implications and concerns persist, the envisioned changes aim to restore equity and address the challenges faced by those navigating dual employment scenarios.

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