A firefighters association claims that Americans are being robbed of their retirement benefits due to a Social Security loophole.
The Senate has officially passed the Social Security Fairness Act 2023, which will repeal two federal laws and allow millions of people, including first responders, to receive Social Security payments.
Now that the bill has passed this critical stage, firefighters in Bryan, Texas, are speaking out about how it will benefit them.
They previously stated that they struggled to make ends meet without the Social Security benefits to which they were entitled.
Daniel Buford, President of the Bryan Firefighters Association, stated: “We’re talking about employees who are teachers, firefighters, police officers, some of our federal workers, and post office employees.
“These two provisions deprive us of the retirement benefits that we are entitled to as a result of our service, and they leave us financially vulnerable after retirement.
“It has been 40 years in the making.
“Now it’s time for us to do the right thing to take care of those people who have given a career choice to serve other people and serve their communities.”
John Riddle, president of the Texas State Association of Fire Fighters, commented: “So, when they get ready to retire because they have a pension, they don’t get their full social security benefit even if they have worked, and the majority work a second job.”
“Getting the full social security benefit will significantly improve their ability to eat, turn on the lights, and do other things.
“So, it would be a huge benefit for our members around the state.”
The Social Security Fairness Act, which passed the Senate 76-20 on December 21, will eliminate two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset.
The GPO may reduce benefits for spouses, widows, and widowers who receive government pensions of their own.
Individuals who receive a pension or disability benefit from an employer who did not withhold social security taxes may see their benefits reduced under WEP.
These two aspects of Social Security reduce benefits for nearly 3 million Americans, primarily public employees who received a pension from a job that did not require Social Security contributions.
RON BONASSO
The US Sun previously covered Ron Bonasso’s story, a retired postal worker who had to work two jobs to survive before the bill was passed.
Ron said, “I’m just trying to make ends meet here; it’s been no picnic.
“There’s a whole bunch of us who have been retired all these years who got schooled by Social Security.”
Senate Majority Leader Chuck Schumer stated, “The Senate finally corrects a 50-year mistake.”
Shannon Benton, executive director of the Senior Citizens League, an organization that advocates for retirees, described the bill’s passage as “a monumental victory for millions of public service workers who have been denied the full benefits they have rightfully earned.”
“This legislation finally restores fairness to the system and ensures the hard work of teachers, first responders and countless public employees is truly recognized.”
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Given the uncertainty surrounding Social Security’s long-term future, workers should consider ways to supplement their retirement income.
Shannon Benton, executive director of the Senior Citizens League, recommends starting to save early and investing in retirement accounts such as 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
Republicans who spoke out against the bill primarily objected to its cost, noting that it would hasten the Social Security trust fund’s projected insolvency by about six months.
This is said to be roughly a decade away.
Emerson Sprick, associate director of economic policy at the Bipartisan Policy Center, stated, “The fact that there is such overwhelming support in Congress for exactly the opposite of what policy researchers agree on is pretty frustrating.”
“We are racing toward our own fiscal demise,” the group’s president, Maya MacGuineas, said in a statement.
“It is truly astonishing that at a time when we are just nine years away from the trust fund for the nation’s largest program being completely exhausted, lawmakers are about to consider speeding that up by six months.”
Now that the Senate has passed the Social Security Fairness Act, it will be sent to President Joe Biden for approval.
