Vote Smart's Synopsis:

Vote to pass a bill that amends and phases in a new funding formula for determining benefit amounts under the windfall elimination provision (WEP), which reduces Social Security retirement and disability benefits for those who receive pensions for certain non-covered employment.

Highlights:

• Amends and phases in a new funding formula for determining benefit amounts under the windfall elimination provision (WEP), which reduces Social Security retirement and disability benefits for those who receive pensions for certain non-covered employment (Sec. 2-5).

• Specifies that 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 (Sec. 2-5):

• Become eligible for Social Security benefits after 2067; and 

• Have earnings from non-covered service performed in a year after 1977.

• Specifies that beneficiaries eligible for benefits between 2025 and 2067 receive the higher benefit calculated under the existing WEP or the new formula and requires that certain beneficiaries currently impacted by the WEP receive an additional payment (Sec. 2-5).

• Requires that the Social Security Administration 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 (Sec. 6).

Full Bill Text

Full Bill Text