Many Americans are concerned about how a government shutdown might impact their Social Security checks. The Social Security Administration (SSA) has clarified that while benefits will continue, other agency functions could face disruptions. Social Security is a lifeline for millions, especially seniors, with one in five elderly people in the U.S. relying on these benefits for at least 90% of their income.
Thankfully, Social Security benefits are protected because their funding isn’t tied to the annual congressional budget discussions. However, there are still concerns about potential delays and challenges in other SSA operations.
How a Government Shutdown Impacts SSA Operations
The White House has directed federal agencies to prepare contingency plans in case of a government shutdown. Although this year’s specific plan hasn’t been released yet, insights can be drawn from the SSA’s previous strategies during similar situations.
Chad Poist, SSA’s deputy commissioner for budget, finance, and management, explained that benefit payments will continue during a shutdown. This is based on legal precedents set during earlier shutdowns. However, Poist noted that many non-essential operations would stop. This includes processing Freedom of Information Act (FOIA) requests, handling overpayments, and replacing Medicare cards.
The disruption will be significant as around 8,500 SSA employees could face furloughs, meaning they will be sent home without pay until Congress approves a spending bill.
A New Bill Could Increase Social Security Benefits
Amid the ongoing concerns, there’s a bright spot for Social Security beneficiaries. A new bill aimed at improving benefits for retired public sector employees has made progress in Congress. The Social Security Fairness Act was recently passed by the Senate with a 76 to 20 vote and is now awaiting approval from President Joe Biden.
The bill proposes eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which currently reduce benefits for some retirees who worked in government roles. For example:
- WEP reduces benefits for retirees who also receive pensions from non-Social Security jobs.
- GPO affects spousal and survivor benefits for individuals whose partners worked in jobs exempt from Social Security taxes.
Supporters say this bill will make Social Security fairer for public sector workers who’ve faced reduced benefits due to these provisions.
Critics Raise Concerns About the Bill’s Impact
Not everyone agrees with the Social Security Fairness Act. Critics, mostly Republican senators, argue that while the bill could help certain individuals, it might also strain the program and taxpayers.
The Congressional Budget Office (CBO) estimates that the bill would add $196 million to the federal deficit over the next decade. Libertarian groups, like the Cato Institute, have labeled the bill as unfair, claiming it benefits only a small group—mainly public sector workers—while increasing taxpayer costs.
Moreover, some fear that this move could shorten the lifespan of the Social Security program, raising questions about long-term sustainability.
What’s Next for Social Security?
While Social Security benefits will continue during a government shutdown, the disruption in other services could create challenges for beneficiaries. Additionally, the ongoing debate over the Social Security Fairness Act highlights the complex balance between providing fair benefits and ensuring financial sustainability.
As Congress and the President navigate these issues, millions of Americans are watching closely, hoping for resolutions that protect their benefits while addressing broader fiscal concerns.
