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Equal Treatment of Public Servants Act of 2023
11/20/2024, 3:36 PM
Summary of Bill HR 5342
One of the key provisions of the bill is the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions currently reduce the Social Security benefits of public servants who also receive a pension from a job not covered by Social Security. The Equal Treatment of Public Servants Act seeks to rectify this issue by ensuring that public servants receive the full Social Security benefits they have earned.
Additionally, the bill includes measures to provide more equitable treatment for public servants who are disabled or survivors of deceased public servants. It aims to ensure that these individuals receive the benefits they are entitled to without facing unnecessary obstacles or reductions. Overall, the Equal Treatment of Public Servants Act of 2023 seeks to address longstanding disparities in retirement benefits for public servants and provide them with the fair treatment they deserve. It is an important piece of legislation that aims to support those who dedicate their careers to serving and protecting their communities.
Congressional Summary of HR 5342
Equal Treatment of Public Servants Act of 2023
This bill phases in a new funding formula for determining benefit amounts under the windfall elimination provision (WEP). The WEP reduces Social Security retirement and disability benefits for those who receive pensions for certain non-covered employment.
The new formula adjusts an individual's total lifetime earnings based on the proportion of those earnings subject to Social Security payroll taxes. It applies to individuals who (1) become eligible for Social Security benefits after 2067, and (2) have earnings from non-covered service performed in a year after 1977. Beneficiaries who become eligible for benefits between 2025 and 2067 receive the higher of their benefit calculated under the existing WEP or the new formula. In addition, certain beneficiaries currently impacted by the WEP receive an additional payment.
The Social Security Administration must include non-covered earnings in Social Security account statements and must study the feasibility of partnering with certain pension systems to address data sharing issues related to non-covered pensions.
