Congress adopted the Social Security Fairness Act on Saturday. This legislation eliminates the penalty millions of public employees experience if they belong to a pension plan that does not participate in the Social Security system.
This reform will benefit school teachers in at least 15 states. In Louisiana, for example, school districts don't make Social Security contributions for their employees. Teachers are poorly paid, and many take part-time or summer jobs to supplement their income.
Even though teachers make Social Security contributions on their second jobs, their Social Security benefits are reduced solely because their primary employer is not in the Social Security system. The American Federation of Teachers estimates that 1.2 million school employees are penalized by this unfair exclusion.
This reform legislation will allow these teachers to receive the Social Security benefits they deserve when they reach retirement age and enable them to retire without becoming impoverished.
The Social Security Fairness Act passed with overwhelming bipartisan support, and the question arises: Why did it take so long?
Fiscal conservatives in Congress fought the legislation because the cost would further strain the already financially strapped Social Security program. Indeed, according to the Congressional Budget Office, this reform will cost an estimated $196 billion over ten years.
So what? President Biden blew through twice as much money when he forgave $180 billion in student loans over his four-year term and spent another $180 billion on the Ukraine war. I don't hear many people squawking about those expenditures.
This is the new reality. Retired Americans living on fixed incomes are being squeezed by inflation. Forty percent of older Americans depend solely on Social Security to fund their retirement, and the average monthly benefit is only about $2,000.
Surely, we can all agree that modestly enhancing Social Security benefits for retired teachers is a good use of public money. If this reform forces the federal government to economize, there will undoubtedly be some wasteful expenditures that can be eliminated.
For example, perhaps it's time to end American support for the Ukraine war and for Nancy Pelosi to cut back on foreign travel in private jets.
Nancy Pelosi in Japan. Did she fly coach? |