Social Security Windfall: Bill to Enhance Benefits for Millions Heads to Biden’s Desk

The U.S. Senate passed a bipartisan bill early Saturday aimed at enhancing Social Security benefits for millions of Americans, particularly those who receive pensions. The legislation seeks to eliminate two longstanding policies: the windfall elimination provision (WEP) and the government pension offset (GPO).

The new bill, projected to cost over $195 billion over the next decade, awaits President Joe Biden’s approval. Although he has not publicly endorsed the bill, the strong bipartisan support in both chambers suggests he may back its enactment.

The Senate’s vote stood at 76-20, following a similarly favorable House vote of 327-75 in November. Maine Republican Senator Susan Collins emphasized the longstanding need for reform, referencing her efforts dating back to a 2003 hearing. Collins, alongside the late California Democrat Senator Dianne Feinstein, introduced the bill in 2005, later collaborating with former Maryland Senator Barbara Mikulski for further revisions.

“Social Security is foundational for most Americans. However, numerous public servants—teachers, firefighters, police officers—see their benefits unduly reduced,” Collins stated. The WEP penalizes those who qualify for Social Security benefits but also receive a pension from non-Social Security jobs. The GPO adversely affects individuals working in positions that exclude Social Security, significantly reducing their spousal benefits.

Collins noted that the issue is particularly critical in Maine, where the state pension system lacks a Social Security component, affecting many school teachers. She called the WEP and GPO an “unfair, inequitable penalty.”

Contrasting views emerged within the Senate. North Carolina Republican Senator Thom Tillis argued that the bill, though well-intentioned, may jeopardize the Social Security trust fund’s stability, predicting a potential insolvency date shift. “We’re passing an unfunded $200 billion spending package for a trust fund likely to go insolvent soon,” he said. Tillis advocates for a comprehensive framework that addresses Social Security’s financial challenges while reforming provisions like the WEP and GPO.

Ohio Democratic Senator Sherrod Brown reinforced the importance of full benefit access for those who have paid into the system. He criticized the existing provisions that prevent public service workers from collecting their rightful benefits, stating these individuals contribute significantly to community welfare.

A report from the nonpartisan Congressional Research Service (CRS) describes the mechanics of the pension offset and WEP, highlighting their impacts on various state populations. Approximately 746,000 Americans are affected by the GPO, while the WEP impacts 2.1 million.

Broad support for the measure has been evidenced in the House, where bipartisan advocates, including Louisiana Republican Representative Garret Graves and Virginia Democratic Representative Abigail Spanberger, have championed the bill. Spanberger stressed that the two provisions have led to significant unfairness in retirement security for public servants, marking a key moment for congressional action to rectify this injustice.

Opposition remains, particularly from Missouri Republican Representative Jason Smith, who argues that eliminating these provisions without a solution could swap one injustice for another. He expressed concerns that the proposed changes could lead to preferential treatment for some at the expense of others, jeopardizing the overall integrity of Social Security.

The Congressional Budget Office has provided projections indicating the bill’s enactment could hasten the Social Security trust fund’s insolvency by six months, with full benefits payable until 2035, after which payouts may be significantly reduced if no legislative solutions are found.