Union leaders are calling on Congress and union members to support a bill that would significantly change retirement benefits for millions of workers.
H.R. 82 is the Social Security Fairness Act, which would do away with two regulations that limit how much money some workers can receive when they have worked in the private sector as well as government jobs. During the Reagan administration, the federal government reduced Social Security checks for anyone who was drawing a pension from a government job, including postal workers, teachers, fire fighters and other public service workers and first responders. Workers sometimes lose as much as two-thirds of the Social Security payments they funded, even if they were fully vested in Social Security before they began working for a state or federal employer.
The issue affects approximately 2.1 million Social Security beneficiaries as of last year, according to CNBC.
For example, an educator at a public school pays into the state pension fund, but might work part-time on nights and during the summer on jobs where they pay into Social Security, but they lose most of that money because they have a state pension. A worker could spend 25 years working in the private sector and paying into Social Security, only to lose the majority of it by entering public service for the latter part of their career. It also affects spousal benefits: the surviving spouse of a police officer or fire fighter would have reduced Social Security by two-thirds because of the state pension.
‘A FISCAL TIME BOMB FOR RETIREES’
There are two bills currently under consideration in Congress, but the AFL-CIO is only advocating for H.R. 82, which is a bipartisan bill supported by U.S. Rep. Nikki Budzinski (D-Illinois) among others. The other, H.R. 5342, was written by the GOP chair of the House Budget Committee and would temporarily improve some benefits, but AFL-CIO leaders say it would expose many more people to benefit cuts once the temporary protections run out, calling it “another fiscal time bomb for retirees.”
“Millions of proud teachers, fire fighters, postal workers, letter carriers and other public service workers dedicate years of service with the hope of retiring with dignity,” the AFL-CIO said. “But back during Ronald Reagan’s administration, the government cut the hard-earned retirement benefits that these workers earned. Their Social Security checks were slashed if they took a second job after they retired; benefits were even reduced for their surviving spouse.”
‘BENEFITS THEY’VE EARNED AND DESERVE’
Budzinski spoke on the floor of the House Nov. 12, calling for passage of H.R. 82.
“Right now, millions of Americans who have paid into Social Security are being cut short in their benefits,” Budzinski said. “Police officers, fire fighters and educators, working people who have devoted their professional lives to public service, are being unfairly punished… The Social Security Fairness act is a bipartisan bill to fix this: restoring benefits that our public servants have paid into throughout their careers and ensuring that every American receives the Social Security benefits they’ve earned and deserve.”
HOW LOCAL REPS VOTED
The House voted 327-75 to pass the bill, with ‘yes’ votes from Budzinski, Cori Bush (D-MO) and Ann Wagner (R-MO). U.S. Rep. Jason Smith (R-MO) voted present.
‘No’ votes included Republican U.S. Reps. Eric Burlison of Missouri and Darin LaHood and Mary Miller of Illinois, as well as four Democrats who hopped the fence to join Republicans in opposing it. Several Republicans also hopped the fence the other way to support it, including U.S. Rep. Mike Bost.
Next it will go the U.S. Senate, where the bill has 62 co-sponsors including U.S. Sens. Dick Durbin and Tammy Duckworth (D-IL). Missouri’s Republican Senators Josh Hawley and Eric Schmitt are not listed among the cosponsors.