Summary
President Biden will sign the Social Security Fairness Act, boosting payments for nearly 3 million public service retirees by eliminating the Windfall Elimination Provision and Government Pension Offset.
The changes will increase benefits by an average of $360–$1,190 monthly, including backdated payments starting January 2024.
Advocates call it a historic victory for educators, firefighters, and others, correcting a 40-year inequity.
While some Republicans supported the legislation, others argued it was unsustainable and would hasten the program’s insolvency.
Social Security has (a) no debt and (b) a perpetual source of revenue. Therefore, it can never go bankrupt or become insolvent.
The only question is if it will be forced to reduce its expenses by up to 30%.
It also has a perpetual source of expenses and it’s growing faster than the source of income.
But unlike debtors, Social Security can unilaterally reduce its expenses at any time. That’s precisely why it cannot go bankrupt or become insolvent.
Are you saying by “reducing” you mean pay out less?
Yes. It’s projected that if nothing else changes, in 2033 they will reduce payouts by 23% and thus continue operating for the foreseeable future.
Not since COVID.