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NJ AR145

NJ AR145
Urges Congress and President enact "Social Security Fairness Act."


summary

Introduced
06/25/2024
In Committee
06/25/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This resolution urges Congress and the President of the United States to enact the "Social Security Fairness Act," currently pending in Congress. Many of New Jersey's law enforcement officers, firefighters, and certain local governmental employees are unfairly penalized by Social Security offsets that reduce or eliminate the earned Social Security benefits of these employees or their spouses. Social Security was enacted in 1935. Initially, state and local governments and their employees were prohibited from participating. Over the years, federal laws were passed allowing these employers and employees the opportunity to elect to join the program. Most public employees in New Jersey retirement systems contribute to Social Security with the exception of law enforcement officers, firefighters, correctional officers, and others in certain local retirement systems. The windfall elimination provision (WEP) reduces benefits that were paid for as part of the Social Security payroll tax. The WEP can lead to a significant reduction of the Social Security benefit and can deprive a retiree of up to $587 per month of the Social Security that was earned and paid. The survivor benefit was paid for by the Social Security earner as part of the Social Security payroll tax. The survivor benefit was created to ensure the surviving spouse was not left without adequate financial support. The government pension offset (GPO) eliminates the survivor benefit even with a modest public pension. These provisions cause first responders and certain local governmental employees to prematurely retire and discourage qualified individuals from entering into government service. The "Social Security Fairness Act" would repeal these provisions.

AI Summary

This resolution urges Congress and the President to pass the "Social Security Fairness Act" to address unfair reductions in Social Security benefits for certain public employees, particularly law enforcement officers, firefighters, and local government workers. The resolution highlights two controversial provisions of the Social Security Act: the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), which can significantly reduce or eliminate Social Security benefits for public employees who did not consistently pay into the Social Security system. Specifically, the GPO can prevent 4,126 New Jersey retirees from collecting both their pension and full Social Security benefits, with an estimated 9 out of 10 public employees losing their entire spousal benefit. The WEP can reduce an individual's Social Security benefits by up to $587 per month, even though they have paid Social Security taxes during part of their career. The resolution argues that these provisions discourage qualified individuals from entering public service and unfairly penalize workers who have dedicated their lives to serving their communities, and therefore calls for the complete repeal of these provisions through the Social Security Fairness Act.

Committee Categories

Health and Social Services

Sponsors (3)

Last Action

Introduced, Referred to Assembly Aging and Human Services Committee (on 06/25/2024)

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