Social Security Fairness Act: Benefits and Problems.

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  1. Sharlee01 profile image86
    Sharlee01posted 5 weeks ago

    https://hubstatic.com/17327223.jpg
    Please keep in mind that Trump has nothing to do with the Social Security Fairness Act. I hope this post sparks a conversation that stays focused on the topic at hand.

    The Social Security Fairness Act, recently signed into law by President Biden, repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced Social Security benefits for public sector retirees who also received pensions from non-Social Security-covered employment. The repeal is expected to increase monthly benefits for nearly 3 million retirees, including teachers, firefighters, and police officers, with some beneficiaries receiving up to $1,190 more per month.

    While the Act aims to address long-standing concerns about fairness for these retirees, it introduces significant financial challenges. The Congressional Budget Office estimates that this legislation will cost taxpayers approximately $196 billion over the next decade. It will also accelerate the depletion of the Social Security Trust Fund, moving its projected insolvency date closer, possibly by six months. The Social Security Trustees have already projected that the Trust Fund could become insolvent by 2034, and this new Act could bring that date even closer.

    This is a parting gift from the Biden administration that will hurt Americans for decades to come. The Act highlights the lack of foresight in addressing Social Security’s broader structural issues. Instead of offering a sustainable solution, it adds to the financial strain on the system, leaving future generations to face greater uncertainty. Once again, this reflects another Biden administration expenditure that worsens the national debt and drains critical resources, without providing real solutions to the problems it creates.

    It’s odd how these kinds of social programs, although attractive to some, are not well thought out by the people we send to represent us in Washington. President Biden has shown a pattern of initiating costly measures that address short-term issues but fail to tackle the underlying problems. In this case, the Social Security Fairness Act may provide temporary relief for a select group of retirees but leaves the larger crisis of Social Security's solvency unaddressed, deepening the challenges for the program’s future.

    A few questions-------

    How do you think the Social Security Fairness Act will impact the long-term stability of Social Security?

    Do you believe the government is addressing the right issues with Social Security, or is this another short-term solution that could worsen the problem?

    What other reforms do you think should be prioritized to ensure the future solvency of Social Security?

    Is this Act a necessary step for public sector retirees, or do you think it could have been handled differently to avoid further strain on the system?

    1. tsmog profile image87
      tsmogposted 5 weeks agoin reply to this

      As far as bearing responsibility it went through the House (Nov 12, 2024 votes cast = 327-75-1) & Senate (Dec 21, 2024 votes cast = 76-20) and was a bipartisan effort. To me Biden's action of signing the act was no more than a formality. So, a moot topic.

      #1 You already shared how the act will impact the stability of the Social Security Trust Fund. What else can be commented about it?

      #2 Two unrelated clauses as I see it. As to the first one it is debatable. The position of fairness to the recipients not having received benefits in the past, why that was so, and if the act corrects it to being fair is open to discussion, of which I have no opinion at this time.

      The second clause from what I read there is no expiration date and the act is permanent, thus not short-term. At least that is my understanding. However, it will worsen as you shared the problem of hastening insolvency. Maybe it is a question of morality if to do it or not with what is right is right. I don't know.

      #3 I don't know enough other than the obvious to creatively problem solve the challenge of Social Security solvency. To show my ignorance wouldn't paying back the loans it has given over the years give a good start it? A long discussion could be had on Social Security starting with its inception.

      #4 I don't know.

      Of course, insert standard disclaimer I cannot take responsibility for any of the reply above due to a degree of ignorance, shooting from the hip, and possible misunderstanding. Just kidding around due to the normal Monday morning, Hooray, a new week a new adventure feeling.

      1. Sharlee01 profile image86
        Sharlee01posted 5 weeks agoin reply to this

        Thank you Tim for your reply

        Yes, it is clear the bill passed in a bipartisan fashion. However, I was concentrating on this bill as a long-term problem due to its spending and the potential for it to deplete the Social Security fund in a relatively short period of time. While I can see some fairness in the bill, I also view it as a significant issue due to the points I’ve mentioned. In my opinion, this mirrors much of what we saw from the Biden administration—creating problems without providing a solution to prevent the negative consequences down the road.

        The lack of a clear plan for how the bill will be funded or how its costs will be offset raises concerns about the future sustainability of Social Security. While the bill appears fair to a segment of Americans, I have concerns about those who could be affected if Social Security becomes insolvent or if cuts are needed across the board due to overspending from the fund. It's crucial to consider the broader impact on all Americans, especially those who rely on Social Security for their livelihood in retirement.

        As of now, there has been no clear, comprehensive plan outlined by Congress for how the Social Security Fairness Act will be funded.
        https://www.ssa.gov/benefits/retirement … s-act.html

        1. tsmog profile image87
          tsmogposted 5 weeks agoin reply to this

          For me to make the bold statement I know all that needs to be known about Social Security especially regarding funding or its financial accounting would be completely asinine as I see it. Just reading about it with the information I receive from the Committee for a Responsible Federal Budget and going to its site to read articles can be overwhelming.

          https://www.crfb.org/

          The U.S. debt with its deficits created by the budget(s) are like a boulder rolling downhill. I am reminded of the myth of Sisyphus in some ways. Maybe metaphorically where the leadership of Sisyphus is the symbolic collective leadership of our government. And the boulder is representative of the failures of governing seen as debt (Period - monetary wealth, lack of knowledge, results of poor leadership, and etc), constantly accumulating whether via spending or cutting taxes. Debt is debt.

          I am sure I don't make sense ha-ha

          https://usercontent1.hubstatic.com/17327418_f520.jpg

          1. Sharlee01 profile image86
            Sharlee01posted 5 weeks agoin reply to this

            Great sense.  I think I get what you're saying. The U.S. debt does seem like it's constantly growing and hard to manage, no matter what the government does. It feels like the more they try to fix it, the bigger it gets, which makes it tough to understand. I agree that Social Security and the financial side of things are complicated, and it's easy to get overwhelmed trying to figure it all out. It's like we're stuck in a cycle that keeps getting worse unless there's a real shift in how things are managed.

    2. Credence2 profile image80
      Credence2posted 5 weeks agoin reply to this

      Even Republicans are saying that the impact on the projected Social Security shortfall is not a dire one. Both parties have been aware of the danger of insolvency of the fund for many years. So, instead of picking on Biden as is the custom with Republicans for at least making sure that participants get what is coming to them, why not a comprehensive solution?

      When Republican come up with solutions besides blaming Democrats, then they can talk.....

      I am one of the WEP folks, why can't I receive the full benefits due from my contribution to Social Security without the arbitrary draconian cuts to my benefits?

      1. Sharlee01 profile image86
        Sharlee01posted 5 weeks agoin reply to this

        My main concern is budgetary. I believe WEP folks have been given a raw deal for years, and they deserve a fair solution. However, my concerns are twofold. First, I’m worried about how this new bill will affect all Americans in the long run, given Social Security's lack of long-term solvency. Second, I feel that once again, Biden has failed to consider the bigger picture, which I find unwise.

        This bill will undoubtedly deplete the Social Security fund further, and after researching the legislation, it’s clear it was passed in a bipartisan manner without any serious thought about how it would be paid for. To me, that’s nonsensical and typical of the status quo in Washington. I can’t help but wonder how long the general public will overlook Social Security’s looming financial issues—perhaps not until all payments are at risk of being cut for every American.

        I understand your point, and I agree that WEP needs to be addressed with a fair and effective solution. However, any changes must include a clear plan for how they will be funded to avoid jeopardizing the future of Social Security for everyone.


        The Social Security Fairness Act (H.R. 82), recently signed into law by President Biden, repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), thereby increasing Social Security benefits for certain public sector retirees.

        The Congressional Budget Office (CBO) estimates that this repeal will increase federal expenditures by approximately $196 billion over the 2024-2034 period.

        As of now, Congress has not specified new funding mechanisms or budgetary offsets to cover these additional costs. This means the increased expenditures are expected to be financed through general federal revenues, potentially adding to the federal deficit.
        CBS NEWS

        During legislative discussions, some lawmakers raised concerns about the financial impact of the bill. For instance, a point of order was raised in the Senate, citing violations of budgetary rules due to the lack of offsets for the increased spending. However, a motion to waive these budgetary concerns was agreed upon, allowing the bill to pass without specified funding sources.
        CONGRESS.GOV

        In summary, while the Social Security Fairness Act provides increased benefits to certain retirees, Congress has not detailed specific measures to fund these benefits, leading to potential implications for the federal budget and deficit.

        1. Credence2 profile image80
          Credence2posted 5 weeks agoin reply to this

          A reasonable reply. I have read that as a result of this ACt, Social Security insolvency will occur 6 months sooner than otherwise. So, our politicians need to work together to find a way to shore up the shortfall and not continue to kick the can down for some future time, as we are running out.

          There are solutions, many which have been deemed politically unpalatable for one side or the other. To acquire equity for public service employees will cost 6 months. Lets come up with a comprehensive solution that will deal with the impeding crisis while not screwing any contributory to the system over.

          We have been asking for this "clear plan" for a long time, so what are they waiting for?

  2. IslandBites profile image93
    IslandBitesposted 5 weeks ago

    Lawmakers across party lines have praised the legislation which stands to help millions of Americans.

    Late last month, the Senate overwhelmingly passed the Social Security Fairness Act by a 76-20 margin. The month before, the bill passed the House via a 327-75 vote.

    Sen. Susan Collins (R-Maine), the sponsor of the Social Security Fairness Act, said Sunday in a thread on the social platform X that she “was honored to be in attendance for the signing of the Social Security Fairness Act into law.”

    “I have fought for this change since 2003, when I held the first-ever Senate hearing on repealing the WEP and GPO, and I am proud that this law will ensure public service no longer comes at the expense of the retirement benefits earned by an individual or their spouse,” Collins added later in her thread.

    "I am so thankful that we in the federal government are keeping a promise on earned benefits to return that which is due to the people who have given their lives to serve the public," Sen. Bill Cassidy, R-La., said after its passage in the Senate last month.

    https://www.congress.gov/bill/118th-con … cosponsors

    "not well thought" "will hurt to Americans" "Biden Biden Biden"

    Most dont agree with you.

    1. Sharlee01 profile image86
      Sharlee01posted 5 weeks agoin reply to this

      My post was ultimately focused on two main points—It was not about who voted for the bill. Yes, I see this as a problem in itself, for a separate conversation. However, I welcome your view. 

      But the cost of such a bill and the potential damage it could do to the Social Security fund, which could harm all Americans if the fund becomes insolvent. I also pointed out my belief that it was irresponsible for Biden to sign the bill, given the current state of the Social Security fund. I made no mention of the Americans the bill was intended to help. The point is that there is a problem, and it needs to be addressed with common sense, considering how the bill would be funded and how it wouldn't further deplete a Social Security fund that is already predicted to fail.

      "The Social Security Administration is currently evaluating how to implement the Act, but specific details regarding its funding and potential impact on the Social Security Trust Fund have not been clearly outlined"
      SOCIAL SECURITY ADMINISTRATION
        https://www.ssa.gov/benefits/retirement … s-act.html

  3. Kathleen Cochran profile image76
    Kathleen Cochranposted 5 weeks ago

    Good discussion seeks its own level without restriction.

 
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