Big changes are coming to Social Security, and they could affect immigrants and others receiving pensions from overseas. Many hoped the Social Security Fairness Act would pass quickly after clearing the House of Representatives, but progress has been slower than expected. This delay has left many people worried that their reduced benefits might continue for another year.
What the Fairness Act Targets
The Act focuses on removing two rules:
- Windfall Elimination Provision (WEP): This reduces Social Security benefits for people who also receive a “non-covered pension.” A non-covered pension comes from an employer (like a state government or a job outside the U.S.) that doesn’t withhold Social Security taxes.
- Government Pension Offset (GPO): This reduces Social Security benefits for widows or spouses who receive a “non-covered pension.”
The original goal of these rules was to prevent people from getting disproportionately high Social Security benefits if they also had a pension. Back when pensions were more generous, this seemed fair. But today, many pensions aren’t enough to live on, forcing workers like teachers, police officers, and firefighters to juggle multiple jobs—and still not receive full Social Security benefits.
How Immigrants Are Affected
These rules don’t just affect U.S. workers; they also impact:
- Americans who worked overseas and now qualify for both a foreign pension and Social Security.
- Immigrants who paid into Social Security but also receive a small pension from a job abroad.
For these groups, Social Security cuts tied to overseas pensions can make it even harder to cover basic expenses, especially since many foreign pensions are smaller than needed to sustain a comfortable retirement.
Why Repealing WEP and GPO Matters
Ending these provisions could make a big difference for people whose Social Security benefits are unfairly reduced. Supporters of the repeal emphasize that beneficiaries aren’t asking for extra money—just the full benefits they’ve earned through their contributions.
Bilateral Agreements: A Glimmer of Hope
Depending on the country where someone’s pension comes from, there may be a solution. The U.S. has agreements with some countries that let workers combine employment periods to meet eligibility requirements. This can help people qualify for better benefits while staying within the rules.
What Immigrants Can Do
Immigrants should:
- Check if their home country has a Social Security agreement with the U.S. This could help them avoid significant benefit reductions.
- Contact the Social Security Administration (SSA): Speak directly with SSA or a specialist to understand your options and make the most of available resources.
For many, these changes could mean a fairer retirement. But until the law is updated, understanding current rules is key to navigating the system effectively.