Senate Votes to Remove Penalties, Boosting Social Security for Some Retirees

Chamber
senate

about 2 months ago - Politics

Yesterday, in a significant move, the Senate voted to make big changes to the Social Security system, a program that provides money to retired people, disabled individuals, and families of retired, disabled, or deceased workers. These changes aim to help some retired people get more money each month.

The changes focus on two main penalties that affect people who get government pensions - that is, pensions for work in jobs like teaching or police work, where they didn't pay into the Social Security system. Right now, if these people also qualify for Social Security, either from their own work or a spouse's, their Social Security payments might be reduced. This happens because of rules called the Government Pension Offset and the Windfall Elimination Provisions.

The Senate's decision will get rid of these rules. This means that if you have a government pension, your Social Security will not be reduced just because of that pension. And if you have income from other pensions (like a private company pension), it won't lower your Social Security benefits either.

This big change was pushed forward by Democrats, who strongly supported the vote to make this happen. The final vote was 66 in favor and 30 against, with more than the needed three-fifths of the senators agreeing. This shows there was a good amount of support for the change.

These updates are planned to start in January 2024. This means that starting next year, people affected by these rules might see more money in their Social Security payments each month. The goal is to make the financial situation better for retired folks by recognizing the work and contributions they've made throughout their lives.

This is a law that changes how Social Security benefits are calculated for people who get government pensions. The main point is that it stops two rules that could reduce the Social Security payments to these individuals.

  1. Government Pension Offset Repeal: Usually, if someone gets a government pension and did not pay Social Security taxes, their Social Security spousal or survivor benefits might be reduced. This law removes that reduction, ensuring people can receive more from Social Security.

  2. Windfall Elimination Provision Repeal: This rule reduced the Social Security retirement or disability benefits for those who worked in jobs that did not pay into Social Security but also had other jobs that did. With this law, the reduction is removed, potentially increasing their Social Security benefits.

The law applies to Social Security payments starting January 2024, meaning changes in payments will be seen from this date. The Social Security Administration will make necessary adjustments to ensure these calculations are reflected in benefits paid out.

96 votes

Yes

66

No

30

Not Voting

4

  1. Signed by President.
  2. Presented to President.
  3. Passed/agreed to in Senate: Passed Senate, under the order of 12/20/2024, having achieved 60 votes in the affirmative, without amendment by Yea-Nay Vote. 76 - 20. Record Vote Number: 338.
    Learn more
  4. Point of order that the measure violates section 311(a)(3) of the Congressional Budget Act raised in Senate.
  5. Motion to waive all applicable budgetary discipline with respect to the measure agreed to in Senate by Yea-Nay Vote. 66 - 30. Record Vote Number: 337.
    Learn more
  6. Message on Senate action sent to the House.
  7. Cloture motion on the measure rendered moot in Senate.
  8. Passed Senate, under the order of 12/20/2024, having achieved 60 votes in the affirmative, without amendment by Yea-Nay Vote. 76 - 20. Record Vote Number: 338.
    Learn more
  9. Motion by Senator Schumer to commit to Senate Committee on Finance with instructions to report back forthwith with the following amendment (SA 3357) withdrawn in Senate.
  10. Motion by Senator Schumer to commit to Senate Committee on Finance with instructions to report back forthwith with the following amendment (SA 3357) made in Senate.
  11. Cloture motion on the measure presented in Senate. (CR S7286)
  12. Considered by Senate. (consideration: CR S7285-7287, S7303-7304)
  13. Measure laid before Senate by motion.
  14. Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 73 - 23. Record Vote Number: 328.
    Learn more
  15. Motion to proceed to measure considered in Senate. (CR S7217)
  16. Cloture on the motion to proceed to the measure invoked in Senate by Yea-Nay Vote. 73 - 27. Record Vote Number: 326.
    Learn more
  17. Motion to proceed to measure considered in Senate. (CR S7131)
  18. Referred to the Subcommittee on Social Security.
  19. Placed on Calendar Senate

    This is a law that changes how Social Security benefits are calculated for people who get government pensions. The main point is that it stops two rules that could reduce the Social Security payments to these individuals.

    1. Government Pension Offset Repeal: Usually, if someone gets a government pension and did not pay Social Security taxes, their Social Security spousal or survivor benefits might be reduced. This law removes that reduction, ensuring people can receive more from Social Security.

    2. Windfall Elimination Provision Repeal: This rule reduced the Social Security retirement or disability benefits for those who worked in jobs that did not pay into Social Security but also had other jobs that did. With this law, the reduction is removed, potentially increasing their Social Security benefits.

    The law applies to Social Security payments starting January 2024, meaning changes in payments will be seen from this date. The Social Security Administration will make necessary adjustments to ensure these calculations are reflected in benefits paid out.

  20. Engrossed in House

    This is about changing rules for some people who get Social Security payments. The goal is to make sure people who get these payments because they worked at jobs that don’t pay into the Social Security system are treated more fairly.

    First, the bill removes a rule that cuts Social Security benefits for people who also get a government pension. This means if someone worked in a government job that didn't pay into Social Security, their Social Security payments won't be reduced just because they get a government pension.

    Second, it gets rid of the "windfall elimination provision." This provision reduces the Social Security benefits for people who didn’t pay Social Security taxes at some of their jobs and also have other pensions. Now, their Social Security benefits won’t be reduced due to this rule.

    Lastly, these changes will start in December 2023. This means people who get Social Security payments will see changes or might get more money starting then. The Social Security office will adjust the amount of money people get to make sure everything is fair based on the new rules.

  21. Introduced in House

    This bill removes two parts from the Social Security laws that affected how much money people could get. The first part removed is the Government Pension Offset. This change means if you receive a government pension and Social Security from your spouse's work, now your Social Security benefit will not be reduced. The second part removed is called the Windfall Elimination Provision which affected how the Social Security benefit was calculated for people who have pensions from jobs where they did not pay into the Social Security system. These changes will start affecting payments in January 2024.