The most recent statement from Social Security says that a new change will affect thousands of retired workers across the United States, mainly those in Ohio, Kentucky, and Indiana. Up to now, it has been thought that the new change will touch more than 300,000 people in these states.
Melissa Johnson is a kindergarten teacher in Warren County’s public schools who has also worked in the private sector for 20 years. She can help you understand the coming changes better.
This is because of a rule in Social Security that says she won’t get the full amount of benefits she is due for the time she worked before she started school. The difference will be $2,000 a month when she quits in 2025, she said.
The new Social Security change will potentially affect more than 300,000 people
For many years, people who worked for the government and got a pension or other retired benefits from the government were not able to get Social Security, even though they paid into the system. Also, their share of the money they make from their jobs in the private sector is much smaller than that of other seniors.
More than 2.1 million public employees across the country are affected by the limits on these benefits. This includes teachers, firefighters, police officers, and other workers.
There is one program in Ohio, Indiana, and Kentucky that affects more than 213,570 individuals or their families. It is called the Windfall Elimination Provision (WEP). Another law called the government salary offset affects more than 121,503 people in all three states.
Former member of the Cincinnati City Council, Rep. Greg Landsman (D)-Ohio, is leading an effort to get a vote on a new bill that would lift these limits on retired government workers. In other words, if they ever paid into Social Security, they would get all of their benefits back, with no limits.
The new payments would add $200 billion to the national budget over ten years, or $20 billion a year. Experts say that would cut Social Security’s ability to pay its bills by six months.
Even though the Republican leadership is against it, Landsman is trying to get 218 signatures on the bill so that it can be voted on in Congress. He has gotten about 170 signatures so far because he thinks it is important to remember those who gave their lives for public service.
Landsman said that all Congress has to do is put it to a vote, and this would make a big difference in their ability to pay their bills and leave with honour. Orlando Sonza, Landsman’s Republican opponent in the next race, was also called by Local 12 to ask what he thought about the bill.
He said that he agrees with it, but he doesn’t understand why it’s important or what the point is. He said that Landsman has backed policies of the Biden government that have made the economy worse. Sonza was worried that his opponent might not be telling the truth about this and might be using it as a political stunt.
Social Security payments might be at risk if Congress doesn’t take action
A new estimate says that starting in 2033, Social Security payments for couples with two incomes could be cut by up to $16,500 per year. This should worry retirees if Congress doesn’t act quickly. People who are retired will see a big drop in their monthly payments if nothing changes, so it’s important to pay attention now.
These are the latest economic, demographic, and programmatic estimates from the Social Security Administration. They show that the OASI Trust Fund’s asset reserves will drop below 20% by the beginning of the 2033 calendar year.
Additionally, the SSA predicts that if nothing is done by lawmakers, the OASI Trust Fund’s assets will be used up soon after, in 2033. At that point, approximately 79% of the benefits outlined in the current law will be due.