Protecting Public Servants' Social Security Benefits and Addressing WEP
This act aims to provide fairer Social Security benefits for individuals who have worked in both public service (without Social Security contributions) and the private sector. It introduces a new benefit calculation method to reduce the negative impact of the Windfall Elimination Provision (WEP) and provides additional monthly payments for those currently affected by WEP. The changes are set to take effect from 2025 and also improve the clarity of benefit information for public servants.
Key points
New Benefit Calculation Rules: Individuals who worked in non-covered employment (e.g., teachers, police, firefighters) and also paid into Social Security will have their benefits calculated more favorably to prevent significant reductions.
Additional Payments for Current Retirees: Those whose Social Security benefits are already reduced by WEP may receive an additional monthly payment of up to $150, starting approximately 9 months after the act's enactment.
Improved Benefit Statements: Starting in 2025, Social Security statements for public servants will include more detailed information about their non-covered earnings and how these might affect their future benefits.
Social Security Trust Fund Protection: The act includes financial mechanisms to ensure that the changes do not negatively impact the stability of the Social Security trust funds.
Expired
Additional Information
Print number: 118_HR_4260
Sponsor: Rep. Neal, Richard E. [D-MA-1]
Process start date: 2023-06-21