US Senate approves Social Security change despite fiscal concerns

21/12/2024 16:44

The U.S. Congress early on Saturday passed a measure to boost Social Security retirement payments to some retirees who draw public pensions - such as former police and firefighters - which critics warned will further weaken the program's finances.



The Senate in a 76-20 bipartisan vote shortly after midnight approved the Social Security Fairness Act, which would repeal two-decades-old provisions that can reduce benefits for people who also receive a pension.



The House of Representatives last month approved the bill in a 327-75 vote, which means that Senate approval sends it to Democratic President Joe Biden to sign into law. The White House did not immediately respond to a question about whether Biden intended to do so.



The bill will overturn a decades-old change to the program that had been made to limit federal benefits to some higher-earning workers with pensions. Over time, growing numbers of municipal employees such as firefighters and postal workers also saw their payments capped.



Most Americans do not participate in pension plans, which pay a defined benefit, and instead are dependent on what money they can save and Social Security. Just one in ten U.S. private sector workers have pension plans, according to Labor Department data.