Legislation to repeal the Windfall Elimination Provision (WEP) has been introduced in the Senate.
The Equal Treatment of Public Servants Act of 2020 (S. 3401) was introduced by Senator Ted Cruz (R-TX) and is companion legislation that was introduced not long ago in the House by Congressman Kevin Brady (R-TX).
Cruz called the WEP an “unfair formula for calculating benefits.” He says his bill offers a “fairer formula that allocates benefits based on what workers earned throughout their lifetime.”
This is not the first time that Cruz and Brady have introduced this legislation. They last introduced the bill in 2018 but it failed to advance.
In an editorial the duo wrote at that time, the lawmakers described the new formula proposed by their bill as follows:
It calculates worker benefits using each worker’s total lifetime earnings, and then adjusts for the proportion of earnings that came from a job that pays into Social Security. We also ensure that the reforms in our bill will take effect over time, giving folks the ability to prepare for anticipated changes. It also guarantees that public servants receive Social Security benefits that reflect their actual work history.
Additionally, our legislation provides relief to current retirees already affected by the WEP by offering a rebate of $100 per-month for workers, and $50 per-month for those receiving a spousal benefit from Social Security. The amount of the rebate is scheduled to increase along with the rising cost of living.
For details on how the WEP impacts a federal retiree’s income, see How Does the WEP Affect Your Retirement Income?.