House passes a bill eliminating tax provisions that harm some federal retirees

The House of Representatives on Tuesday passed, 327-75, legislation that would repeal Social Security’s windfall elimination provision (WEP) and government pension offset (GPO) — tax provisions that negatively impact some federal retirees’ annuity benefits. 

Now, the bill heads to the Senate, where companion legislation has 62 cosponsors. After the House passed it, Reps. Garret Graves, R-La., and Abigail Spanberger, D-Va., who are co-leading the legislation, urged Senate leadership to bring up the measure for a vote. 

"A bipartisan supermajority in the U.S. House came together last night to protect Americans' earned benefits and send the Social Security Fairness Act to the U.S. Senate, where more than 60 Senators — a filibuster-proof supermajority — have signed on as supporters of this legislation,” Spanberger said in a statement to Government Executive. “Now is the time to right this wrong and send this bill to the president's desk to be signed into law."

However they’re up against a tight timeline, as the Senate would need to pass the measure before the current Congress ends on Jan. 3, and that chamber is focused on confirming President Joe Biden’s judicial nominees. 

Supporters also could attach the legislation to the annual National Defense Authorization Act, which is often a vehicle for passing non-defense-related items, or a continuing resolution to fund the government past the current Dec. 20 deadline. 

The WEP reduces the Social Security benefits of retired federal employees who spent a portion of their careers in the private sector in addition to a federal, state or local government job where Social Security is not intended as an element of their retirement income, such as the Civil Service Retirement System. And the GPO reduces spousal and survivor Social Security benefits in families with retired government workers.

Graves and Spanberger in September obtained 218 signatures from fellow lawmakers to file a discharge petition that required Speaker Mike Johnson, R-La., who is one of the bill’s 330 cosponsors, to schedule a vote on the measure. 

As of December 2023, the WEP applied to approximately 2.1 million individuals, and the GPO affected nearly 750,000 people. 

“These are firefighters who worked a second job to make ends meet, police officers who began a second career after leaving the force, teachers who took a summer job to cover the bills and buy school supplies and they are federal employees who went on to work in the private sector,” Spanberger said during floor debate. “They are all receiving a fraction of their earned Social Security benefits.” 

The Congressional Budget Office estimated that the measure would cost about $196 billion in additional Social Security benefit outlays over the next decade.

Also on Tuesday, the House rejected, 175-225, competing legislation from Rep. Jodey C. Arrington, R-Texas, that is backed by 36 Republicans and Texas Democrat Vicente Gonzalez. Rather than eliminate the WEP, that bill would establish a new funding formula for determining benefits amounts under it. 

“People who have been shortchanged need to get the money that they are rightfully owed by their government. I can start there and say Democrat and Republican colleagues alike agree on that, but my bill will do it in a fiscally responsible way,” Arrington said during floor debate. “I think [Graves and Spanberger’s bill] is well-intended, but it’s going to accelerate the bankruptcy of Social Security.” 

Graves and Spanberger’s legislation is supported by a range of organizations, including the National Fraternal Order of Police, International Association of Fire Fighters, American Federation of Teachers, National Association of Letter Carriers and National Active and Retired Federal Employees Association. 

“In NARFE’s entire history, we have not made it this far in our concerted effort to repeal the harmful Windfall Elimination Provision and Government Pension Offset,” said William “Bill” Shackelford, the group’s national president, in a statement. “Now we urge the Senate to bring this bill to the floor for an up-or-down vote. With more than 60 sitting senators sponsoring or cosponsoring the bill, there should be adequate support to overcome a filibuster.”