On November 12 the House passed H.R. 82, the Social Security Fairness Act, which calls for an end to the Windfall Elimination Provision and the Government Pension Offset. The vote was decisive, 327-75. It faces an uphill battle in the Senate.
If passed by the Senate and signed into law, it would eliminate both the WEP and GPO for clients who worked in noncovered jobs. According to an actuarial analysis done in July 2022, it would worsen Social Security’s finances and cause the trust fund to exhaust in 2034, one year sooner than current projections.
As you may know, proposals to change Social Security in some way are frequently introduced in the House. Usually they are referred to committee and never see the light of day. While it is significant that this bill came up for a full vote and passed by such a wide margin, it is a long way from becoming law.
The WEP and GPO affect about 3% of Social Security recipients, reducing retirement benefits by as much as $600 per month and spousal and survivor benefits by two-thirds of the recipient’s pension amount, which often brings it down to zero. If your WEP/GPO clients ask about this, please make sure they know that passage by the House does not make it law. Until it’s passed by the Senate and signed by the president, the WEP and GPO reductions will go on as usual.