The House is gearing up to pass a Social Security-focused bill this week, aiming to secure full benefits for workers eligible for additional pensions. This follows a surprising obstruction attempt by the conservative House Freedom Caucus, which briefly stalled the bill’s progress.
This effort is a swift recovery for what was originally a bipartisan initiative to push the Social Security Fairness Act forward in the final session of Congress.
Social Security Fairness Act Overview
The Social Security Fairness Act targets the removal of the “government pensions offset” (GPO) and the “windfall elimination provision” (WEP). These provisions reduce Social Security benefits for individuals who receive pensions from employers that did not contribute to Social Security taxes, including many state and local governments or non-U.S. employers.
The GPO reduces spousal and survivor benefits by two-thirds of the non-covered pension amount. This reduction can significantly lower or even eliminate a person’s Social Security benefit, depending on the pension amount. If passed, the act would eliminate this offset, fully restoring Social Security benefits for affected individuals.
For example, under the current GPO rule, someone eligible for a $900 spousal benefit from Social Security and receiving a $1,000 non-covered pension would see their Social Security benefit cut by $667, leaving only $233. Repealing the GPO would allow this person to retain the full $900 benefit.
Does the Bill Have Bipartisan Support?
Introduced by Representative Garrett Graves (R-La.) and Representative Abigail Spanberger (D-Va.), the bill has garnered broad support in the House, including backing from over 300 lawmakers like House Speaker Mike Johnson.
Numerous organizations, including the National Association of Counties, also endorse the bill, viewing it as a way to improve county government recruitment efforts amid labor shortages.
Progress and the Discharge Petition
In an unusual move, Graves and Spanberger used a discharge petition to force the bill out of committee. This rarely successful process requires 218 House signatures, which they achieved, enabling the bill to reach the floor for a vote. This bold tactic challenges the traditional House leadership’s control over the voting schedule but has allowed the bill to advance.
Both Graves and Spanberger are not seeking reelection, which may have influenced their decision to pursue the discharge petition. Moreover, Speaker Mike Johnson, who backed the bill before his appointment, has lent significant support.
Freedom Caucus Intervention
The House Freedom Caucus, represented by Chairman Rep. Andy Harris (R-Md.) and former chair Rep. Bob Goode (R-Va.), intervened during a pro forma session while most lawmakers were in their home states. They quickly moved to table parts of the measure, temporarily delaying the bill’s progression.
The Freedom Caucus typically opposes legislation that could increase federal spending. According to the Congressional Budget Office (CBO), passing the Social Security Fairness Act could add approximately $196 billion to the federal deficit over the next decade. Graves countered this figure, arguing that the amount reflects benefits withheld from recipients due to the current offsets.
Expected Outcome and Potential Challenges
Despite the procedural setback, a House vote is anticipated shortly, although the process will now demand a supermajority rather than a simple majority, increasing the difficulty of passage.
If the House clears the bill, it will face a more uncertain path in the Senate. If approved by both chambers, the bill would proceed to President Joe Biden for signature, with changes slated to apply to benefits payable after December 2023.
| Provision | Description | Impact on Benefits | Who it Affects | Estimated Cost |
|---|---|---|---|---|
| Government Pension Offset (GPO) | Reduces spousal/widow(er) benefits by two-thirds of non-covered pension | Reduces or nullifies benefits | State/local government employees | $196 billion (CBO estimate) |
| Windfall Elimination Provision (WEP) | Lowers Social Security benefits for those with pensions from employers not withholding Social Security taxes | Decreases personal benefits | Non-covered pension recipients | Included in GPO estimate |
What changes does the Social Security Fairness Act propose?
The Act proposes removing the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), allowing recipients to access full Social Security benefits regardless of additional pensions from non-covered employment.
Who is most affected by the GPO and WEP?
Employees of state and local governments, along with certain non-U.S. employers, who did not pay Social Security taxes are most impacted by these offsets.
What support does the bill have?
The bill enjoys substantial bipartisan support, with over 300 lawmakers, including Speaker Mike Johnson, endorsing it. Organizations like the National Association of Counties also back the measure.
