Impending bill in Congress would accelerate Social Security default
Martin Heinrich and others in Congress could vote any day on a bill called the Social Security Fairness Act which would allow certain government employees to collect Social Security without having paid into it. If adopted, this bill would accelerate the default of Social Security.
As US News & World Reports notes:
Government pensions are valuable retirement benefits but can come with a downside. A non-covered pension could reduce someone’s Social Security benefits by hundreds of dollars each month.
That’s because of two provisions of law: the Windfall Elimination Provision and the Government Pension Offset, commonly known as WEP and GPO. Each reduces the Social Security benefits of someone who also receives a pension from a job that did not pay taxes into the system.
If adopted the bill will potentially reduce benefits for those who HAVE paid into the system to pay for those who haven’t as the series of tweets below highlight. The estimated cost of this plan would be $190 billion over a single decade.
