The Patriot Post® · Robbing Social Security

Social Security was created to provide a secure future for American workers who wouldn’t have to worry about making ends meet during their golden years. Unfortunately, politicians can’t keep their hands off other people’s money, including their retirement savings.

For years, we’ve heard Democrats and Republicans talk about how they’ll protect the program, from Al Gore’s infamous “lockbox” plan to Republicans lacking the courage to do anything at all. As a result, the program is running out of money. According to the Social Security Administration, “As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. At the point where the reserves are used up, continuing taxes are expected to be enough to pay 76 percent of scheduled benefits.”

Instead of addressing the broader issue of Social Security’s solvency, President Joe Biden made matters worse by signing the Social Security Fairness Act last weekend. This act, in part, will repeal the Windfall Elimination Provision, which was designed to ensure that public-sector workers didn’t receive benefits to which they weren’t entitled or the Government Pension Offset that reduced spousal or widower benefits.

“While most jobs are covered by Social Security,” The Hill reports, “many Americans have worked in state and local government jobs that fall outside of that coverage — and have been able to earn a pension instead. That includes those in teaching professions, police officers, firefighters and others who have worked in public service.”

The Committee for a Responsible Federal Budget adds, “The WEP and GPO were created to prevent Social Security from overpaying certain beneficiaries who also collect state and local pensions, which they paid into instead of paying Social Security taxes during their employment for state and local governments.”

In other words, the Social Security Fairness Act benefits people who never paid into the system.

As the Concord Coalition reports, “Fewer than 30 percent of state and local government employees have chosen not to participate in Social Security. These non-covered workers are not being denied Social Security because of their public service careers. They do not receive Social Security benefits because they do not pay Social Security payroll taxes.”

This isn’t a Democrat versus Republican issue.

“Though criticized by liberal, centrist, and conservative Social Security policy experts, the legislation was popular among elected officials and cleared the House and Senate with large bipartisan majorities,” writes David Weaver at The Hill. “President-elect Trump also supported the legislation, and it will fall to his administration to actually make the new benefit structure a reality.” It’s a costly move, both in terms of how much money will be taken from Social Security and the reduction in benefits.

The Committee for a Responsible Federal Budget asks, “At a time when we’re already borrowing $2 trillion a year and retirees are already slated to see a 21 percent benefit cut — an average of $16,500 for a newly retiring couple in 2033 — in just nine years, why would we make it a 22 percent, $17,300 cut in eight and a half years instead? There is broad consensus among experts and lawmakers that reform, not repeal, of WEP and GPO would ensure fairness and could actually improve the program’s solvency.”

Lawmakers on Capitol Hill don’t have the vision or the interest in looking beyond tomorrow. It’s a can they keep kicking down the road, this time robbing nearly $200 billion from the Social Security trust fund to reward public-sector workers who already receive government pensions. The Social Security Fairness Act is anything but fair and the epitome of government inefficiency.

“There’s a better way to fix the windfall and government pension provisions,” argues Rachel Greszler. “By using the data that’s now available, the Social Security Administration can calculate benefits as intended, based on the income that people actually earn and the Social Security taxes they actually pay.”

Greszler adds, “The Equal Treatment of Public Servants Act of 2023 (H.R. 5342) is much closer to a fair and accurate fix for the Windfall Elimination Provision and it would cost one-eighth as much — $24 billion over 10 years and only a ‘negligible’ impact over 75 years. A similar fix for the Government Pension Offset could be incorporated into that act, or introduced as a separate bill to be voted on in the next Congress.”

It will be interesting to see how President Donald Trump and the Republican Congress implement this new act and whether they’ll take proactive steps to address Social Security’s long-term solvency. Trump has promised to keep his hands off the program, which means privatization or other bold approaches to stave off insolvency for future generations are likely off the table. For now, we need to ensure that those who paid into the system receive their benefits and those who didn’t pay aren’t double-dipping.