Tuesday, January 7, 2025

National debt to increase $196 billion after Social Security Fairness Act signed

 President Joe Biden has signed the bipartisan Social Security Fairness Act, which aims to enhance benefits for retired public sector workers while significantly increasing national debt.

• The act removes the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which reduced retirement benefits for certain public sector workers.

• By eliminating these provisions, over 2. 8 million retirees are expected to receive an average monthly increase of $360, with many also getting a lump sum for past benefits.

• The Congressional Budget Office estimates the act will increase national debt by $196 billion, while some predict it may reach $233 billion, accelerating Social Security’s projected insolvency to 2034.

• Critics argue that this act imposes a financial burden on taxpayers and undermines the Social Security system’s long-term stability.

The signing of the Social Security Fairness Act represents a significant change in benefits for public sector retirees while raising concerns about increasing national debt and Social Security’s financial future.

https://www.thecentersquare.com/national/article_da7263e2-cc5e-11ef-bdce-bbab9a224583.html

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