Today we have a big topic that's causing a stir in Washington and across the country: the proposed increase to Social Security. This potential change could affect millions of Americans, and we're here to explain it all.
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What is happening with Social Security?
A bill is currently in the works that could provide a much-needed boost to many Americans receiving Social Security benefits. The House of Representatives has already passed this bill and it is now up to the Senate to decide its fate.
Today we're going to cover two big questions we've been getting in the comments:
1. How many people will be affected by this change?
2. Will the increase be retroactive or start at a future date?
Let's dive into these points, but first let's take a closer look at the bill itself.
Breaking down the social security bill
The proposed legislation, relatively short (one page), has a clear objective: to repeal two key provisions of the current Social Security system:
1. Government Pension Offset (GPO)
2. The Windfall Elimination Clause (WEP)
Both have long been criticized for reducing Social Security benefits for people who also receive certain types of pensions.
Effective date: retroactive or not?
Now, let's look at the timeline. If we look at the text of the House bill, it specifies that the changes will apply retroactively as of January 1, 2024.
This means that if the Senate passes the bill as is, recipients could expect to receive a one-time payment covering the months of January onwards.
There is one twist, however. The Senate has the power to amend the bill and could decide to change the effective date. For example, it could delay it until January 2025 or make other adjustments. Any changes the Senate makes would send the bill back to the House for approval.
Who will benefit?
Now let's talk about the people who will benefit the most from this bill. Experts estimate that more than 2 million retirees would see an increase in their monthly Social Security payments if these changes go into effect.
State by State Impact
The number of people affected varies significantly by state. Here are some highlights:
Alabama leads the nation with more than 75,000 retirees who would see an increase in benefits.
California follows with around 28,000 people affected.
Texas has 25,000, while Colorado has an impressive 175,000 retirees who would benefit.
At the lower end, states like New York and Michigan have fewer affected retirees, with numbers closer to 35,000 and 14,000, respectively.
These numbers give us an idea of how widespread the impact could be: States that have more public employees or pension programs will see a higher proportion of individuals affected.
What happens next?
The big question now is when the Senate will take up the bill. Ideally, they would do so before the Thanksgiving recess to ensure timely action. If the Senate passes the bill without amendments, it will head straight to President Biden's desk for his signature.
However, the Senate could also make changes, which would mean additional steps before the bill becomes law.
Can future administrations change this?
Another concern raised in the comments is whether future administrations, such as a potential Trump presidency, could reverse these changes.
Here's the thing: While a president can't single-handedly undo changes to Social Security through executive orders, Congress could pass new legislation to reverse the reforms.
That said, this particular bill has bipartisan support, making it less likely to face opposition in the future.
A step towards social security reform
It is important to note that while this bill addresses the WEP and GPO, broader reforms to the Social Security system are still needed. With growing concerns about the long-term solvency of Social Security, future Congresses will need to address this issue head-on.
The role of the “Government Efficiency” Commission
There has also been talk of a new commission aimed at improving government efficiency. Headed by prominent figures such as Elon Musk and Vivek Ramaswamy, this commission is expected to make recommendations to reduce waste and improve operations across federal departments.
They will not, however, have the authority to make direct cuts to Social Security or other programs: Those decisions will remain in the hands of Congress.
Your questions answered
Let's get back to the questions you've been asking.
1. How many people will this affect?
As mentioned above, more than 2 million retirees will directly benefit from this bill, with varying impacts in different states.
2. Will the increase be retroactive?
If passed as written, yes! Recipients would see retroactive payments starting in January 2024. However, the Senate could change this, so we'll keep an eye on developments.
Looking to the future
The Social Security Fairness Act represents an important step toward addressing long-standing problems with the WEP and GPO. While it is not comprehensive reform, it is a step in the right direction for millions of retirees.
The next few weeks will be crucial as we await the Senate's decision. Will they approve the bill as it is or introduce amendments? Only time will tell.
Let us know your opinion
We want to hear from you!
What do you think about the Social Security Equity Act?
Should Congress focus more on comprehensive Social Security reform?
What do you think about the proposal to create a “government efficiency” commission and its potential impact?
Leave your thoughts in the comments below and don’t forget to give this video a thumbs up and subscribe to the channel for more updates on this story and others.
Thank you for tuning in and as always we will keep you posted on the latest developments. Until next time, take care and stay tuned!
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