After passing the House of Representatives, the Social Security Fairness Act was expected to go quickly through the Senate. Unfortunately, the Act’s deletion of two provisions has slowed progress and left many wondering if they will continue to receive lesser pensions.
The Act aims to address the Windfall Elimination Provision (WEP), which adjusts Social Security worker payments for those with “non-covered pensions” based on their other Social Security-covered incomes. Non-covered pensions are paid by employers who do not deduct Social Security taxes from salaries, such as state and municipal governments or non-U.S. companies. The bill intends to eliminate the Government Pension Offset (GPO), which affects Social Security spousal or widow(er) payments for those receiving “non-covered pensions.”
The Social Security Administration (SSA) implemented provisions to prevent workers who were eligible for both a pension and benefits from receiving a significantly higher Social Security benefit than was fair. However, this was when pensions were robust and could sustain a person during retirement. Nowadays, teachers, police officers, firefighters, and other pensio
This also impacts Americans who have lived and worked abroad and earn a pension, as well as international workers who contribute to Social Security but receive money from a previous job overseas. These taxpayers are also covered by these provisions, and having their benefits lowered due to foreign pensions that frequently do not meet their demands might have a negative impact on their quality of life.
This rule primarily impacts those who do not have the requisite 30 years of taxable income to get the maximum Social Security payment, although it applies to everyone. Those who fail to make the required contributions may see their payouts slashed by up to 50%, particularly if they are immigrants receiving pensions from their home countries.
How the WEP repeal would help Immigrants access to Social Security benefits
Repealing these provisions could help those struggling with reduced Social Security benefits. Supporters of the bill have emphasized that beneficiaries are not seeking additional benefits, but rather a return of their rightful contributions to the program.
However, depending on the country from which they are receiving their additional pension, the situation may not be as bad for them, as the US has bilateral agreements with some nations that allow combining work periods, which can help immigrants meet the minimum requirements and access a higher benefit while remaining within the amount they are entitled to based on their record and without having to jump through as many hoops.
It is critical for migrant workers to investigate whether their countries of origin have agreements with the American government. This could prevent major pension reductions and ensure a more stable retirement. To optimize available resources, speak with specialists or Social Security.