Millions of Social Security recipients, including many in Acadiana, may soon see a boost in their payments under new legislation set for a final Senate vote.
The Social Security Fairness Act seeks to eliminate long-standing provisions that reduce Social Security benefits for individuals who are also eligible for pensions. Louisiana Senator Bill Cassidy calls these provisions "unfair" and says the bill will help ensure people receive the benefits they've earned.
"For years, about 100,000 people in Louisiana have been affected by these provisions," Cassidy said. "Who are they? Our sheriff's deputies, our police officers, our high school teachers, all teachers in the public school system. I worked in the Charity Hospital system for 20 years, I paid into Social Security, but a lot of the janitors, the lab techs, the nurses did not."
The provisions Cassidy refers to are the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), both of which have been in place for decades.
The WEP reduces Social Security benefits for individuals who receive a pension from a job where they did not pay Social Security payroll taxes. Meanwhile, the GPO impacts spouses and widows who receive a government pension, often reducing or eliminating their Social Security benefits.
"This changes that so they get the benefits they earned," Cassidy said. "These are earned benefits. They have not been receiving them, but now they will."
When asked about the potential fiscal impact of the bill, some critics argue that the measure could strain the Social Security trust fund. Cassidy addressed these concerns directly.
"First, two things," he said. "You don't balance the Social Security trust fund by not giving people their earned benefits. Let's first say that. Secondly, I have a plan to actually address Social Security. It’s going insolvent in eight years. This is a more restrained approach, but to pretend Social Security is doing well is just totally false. What we need is a comprehensive plan, and I have that plan."
According to the Congressional Budget Office, the Social Security Fairness Act could cost nearly $200 billion over the next 10 years. If the Senate approves the bill, it will head to President Joe Biden’s desk for final approval.
As lawmakers debate the legislation, many in Acadiana and across the country are hopeful that this bill will provide fairness and restore benefits to those who have long been penalized under the current system.
