WASHINGTON, D.C. – The U.S. Senate voted 76-20 early Saturday to pass bipartisan legislation that will provide full Social Security benefits to more than 2.8 million public pension recipients who have been receiving reduced payments. The bill, which allows these individuals to collect Social Security benefits at the same levels as other retirees, has now been sent to President Joe Biden’s desk for signing.
The bill, which passed the House in November by a vote of 327-75, was pushed forward by a bipartisan coalition of lawmakers. President-elect Donald Trump recently voiced his support for the measure, with 27 Republicans joining Democrats in backing the legislation.
The bill will have a significant financial impact, costing an estimated $196 billion over the next decade. It also eliminates provisions that had previously prevented retirees and their families from “double dipping” by receiving both a public pension and full Social Security benefits.
Under the current law, public employees who are exempt from Social Security payroll taxes but have worked at least 10 years in jobs that require Social Security contributions, along with individuals who receive public pensions and are eligible for Social Security benefits upon the death of a spouse or family member, face reductions in their Social Security payments. The newly passed legislation will allow these individuals to receive the full benefits they are entitled to, regardless of the public pension they are receiving.
While the move has been celebrated by pension recipients, the legislation also accelerates the projected depletion of the Social Security fund, which is estimated to run dry by 2038. Experts warn that, without further action, recipients could see a 27% reduction in benefits. The new law is expected to speed up the fund’s depletion by about six months.
As the bill moves toward becoming law, it marks a major shift in the treatment of public pension recipients and highlights the ongoing challenges facing the Social Security system.
