The Savings Game: Social Security Fairness Act passes House, needs Senate approval
Most Americans have jobs that withhold payroll taxes (aka FICA taxes) that contribute to the Social Security system, and when they reach retirement age they are able to claim a Social Security benefit based on their earnings. Other people work at jobs that are not within the Social Security system, meaning no Social Security taxes are paid that accrue to a future benefit. But some people spend enough time in both kinds of job that when they retire, they are due both a pension and a Social Security benefit.
I hear from readers who fall into that latter category. They write saying that they believe that the provisions of Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reduce Social Security benefits and are unfair both to them and their beneficiaries. Members of Congress, for many years, have proposed legislation that would repeal WEP and GPO. In an environment in which Social Security is facing shortfalls, the proposed legislation has not been approved by Congress.