The Social Security Fairness Act was signed into law by President Joe Biden on Jan. 6 thanks to strong bipartisan support. The intent was to provide greater retirement security and “fairness” to people who have dedicated their careers to public service, with bill supporters saying the old law unfairly stripped many low-income government and public workers of the benefits they deserve.
But did they get it wrong? Andrew G. Biggs, senior fellow at the American Enterprise Institute and a nationally recognized expert on retirement issues and Social Security policy, makes a compelling argument for why the Social Security Fairness Act essentially amounts to a $200 billion giveaway to people who neither need the benefits nor paid into the system to receive them.
Key Insights
- Impact of Social Security Fairness Act: The repeal of WEP and GPO provisions increases Social Security benefits for public sector employees but raises concerns about fairness and financial sustainability.
- Public Sector Pension Dynamics: Many public employees benefit from generous pensions and may now receive additional Social Security benefits, leading to “double-dipping” concerns.
- Fiscal Consequences: The $200 billion cost of the legislation accelerates the depletion of Social Security trust funds, threatening long-term sustainability.
SEE ALSO:
• Biden Signs Social Security Fairness Act
• Key Changes May Come in Latest Social Security Bill
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
