Congress Approves $200 Billion in Additional Social Security Benefits: Do You Qualify?

This episode looks at whether you qualify or not for the $200 billion Social Security benefits approved by the U.S. Congress.

Host David McKnight shares that, with the current status quo, the Social Security Trust Fund is on pace to go bust by 2033.

If that were to happen, only about 83% of benefits would be paid out… 

If signed into law by President Joe Biden, the Social Security Fairness Act would provide an additional $200 billion in Social Security benefits to nearly 2.8 million Americans over the next 10 years.

The Social Security Fairness Act would eliminate two policies that have reduced benefits for public service employees: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

The people most likely to be affected by the elimination of these two provisions are about 28% of state and local government employees who are covered by alternative retirement systems and permanent civilian federal employees hired prior to January 1, 1984.

U.S. Senators Sherrod Brown (Ohio) and Susan Collins (Maine), co-sponsors of the Social Security Fairness Act, believe that the WEP and GPO have historically penalized people for choosing to serve their communities by dramatically reducing Social Security benefits. 

While David believes that Americans should get their due when it comes to their Social Security benefits, he wonders whether this is something that America can really afford…

According to the Nonpartisan Committee for a Responsible Federal Budget, the passage of the bill in question will accelerate the insolvency of the Social Security Trust Fund by six months.

David sees the Social Security Fairness Act and its repercussions on Americans as “yet another unfunded obligation on the balance sheet of the Federal Government.”

 

 

Mentioned in this episode:

David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com

Congressional Budget Office

President Joe Biden

U.S. Congress

U.S. Senate

Senator Sherrod Brown (Ohio)

Senator Susan Collins (Maine)

CBS News