House Passes Social Security Reform Bill

Key Takeaways

On September 12, the House passed the Social Security Fairness Act of 2023 (H.R. 82) which would repeal the Windfall Elimination Provision (WEP) that impacts the retirement benefits of certain public sector employees. Eliminating the WEP would give public employees access to their full social security benefits, putting an end to a reduction of benefits for 2.1 million county and state employees. 

What to know about the Windfall Elimination Provision

• The WEP is a formula used to calculate Social Security benefits for individuals who have worked both public and private sector jobs, leaving them with both social security benefits and non-covered pensions at retirement.
• The WEP was created to minimize “double-dipping” between private pensions and Social Security but ultimately penalizes those who have served in both sectors and reduces their benefits. 
• This penalty is particularly salient given county workforce shortages, potentially deterring talent from serving in the public sector. 

What is the state of the Social Security Fairness Act?  

On November 12, the House passed the H.R. 82 with a final vote of 327-75. Introduced in September by Representatives Graves (R-La) and Spanberger (D-VA), this legislation shows bipartisan support for county officials to receive their full range of retirement benefits.

The Senate companion bill (S. 597) is led by Sens. Sharrod Brown (D-Ohio) and Susan Collins (R-Maine) and has 62 cosponsors—enough to invoke cloture and pass in the Senate. Counties urge the U.S. Congress to enact legislation reforming the WEP to make benefits fairer to individuals who split their careers between the private and public sector. 

NACo will continue to track the Social Security Fairness Act and WEP and keep members updated with any changes.