The bill to expand Social Security benefits lands on Biden’s desk

A bill to expand Social Security benefits for millions of Americans is now on President Joe Biden’s desk. It’s a big win for public sector retirees, but critics fear it will further destabilize the Social Security trust fund.

For decades, federal policy has limited social security payments for many public sector employees who also receive pensions.

“They punish civil servants, police officers, firefighters and educators,” said Martha Karlovetz, a retired teacher who has been fighting to repeal these policies since 2001.

“I estimate I have lost about $110,000 since I started collecting Social Security,” Karlovetz said. “Equally concerning is that if my husband predeceases me, I would not receive any of his survivor benefits.”

A bipartisan bill that has now cleared its final hurdle in Congress eliminates two provisions – the Windfall Elimination Provision and the Government Pension Offset. In doing so, the bill aims to expand Social Security benefits for nearly three million Americans.

“Tonight, the Senate finally corrects a 50-year-old mistake,” Senate Majority Leader Chuck Schumer said as the bill passed early Saturday morning.

But this correction comes with a high price – almost $200 billion. Sen. Ted Cruz (R-Texas) said this will further strain the Social Security Trust Fund.

“It accelerates the bankruptcy of Social Security by six months,” Cruz said.

This could impact everyone who relies on the program.

“Accelerating Social Security insolvency will only worsen its consequences; Benefits will be cut by an additional 1%, while lifetime benefits will be cut by $25,000 for a typical couple,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement.

According to the latest official estimates, the Old Age and Survivors Insurance Trust Fund will not be able to pay out full pension benefits as early as 2033. At this point, retirees would receive only 79% of planned benefits unless Congress takes further action to shore up the program.

“We must ensure that retirees receive their fair share, but we cannot do so at the expense of all beneficiaries and future generations,” said Sen. Joe Manchin (D-Wa.).

But the law’s passage is a relief for police officer Joseph Woloszyn, who is retiring in a few years.

“That would be a big deal for me,” said Woloszyn, who is also president of the Virginia Police Benevolent Association. “Everyone is just asking that we get a fair amount of what we invest. We don’t ask for more, but we certainly don’t ask for less.”

It remains unclear how Congress plans to strengthen Social Security in the long term.
Senators rejected several amendments aimed at offsetting the costs, including one from Sen. Rand Paul (R-Kentucky) that would have gradually raised the retirement age.

President-elect Donald Trump has said Republicans “should not cut a dime from Social Security.” Instead, he has promised to cut federal spending in other areas he considers wasteful.

During the campaign, Trump also promised to cut taxes on Social Security benefits. The Committee for a Responsible Federal Budget predicts that this and other campaign proposals would “dramatically worsen Social Security’s finances” and accelerate bankruptcy by three years.