Industry News

On September 27, 2019, the U.S. House Ways and Means Committee Chairman Richard Neal (D-MA) introduced the Public Servants Protection and Fairness Act (H.R. 4540).  The bill provides a new proportional formula for the Windfall Elimination Provision (WEP) based on a worker’s actual earnings.  In addition, the legislation provides a benefit guarantee for current and future retirees to use the greater of the new or old WEP formulas.  The bill also provides immediate relief to current Social Security beneficiaries affected by the WEP in the form of an additional $150 per month.  The relief payments would begin nine months after enactment of the legislation and would continue for as long as the eligible individuals receive Social Security benefits.  The relief payments would be limited to the amount of each individual’s current WEP reduction.

Created in 1983, the WEP was originally intended to equalize the Social Security benefit formula for workers with similar earnings histories, by reducing the Social Security retirement or disability benefits for those who receive benefits from both covered and noncovered employment.

Currently, nearly 2 million Social Security beneficiaries are affected by the WEP.

The press release and further information are available here.