money to live comfortably in retirement. Only 9% of surveyed public employees reported that their benefits were “very sufficient.” Social Security Fairness Act signed into law While the state of pension plans remains a concern for the public sector, a new bill signed into law by President Biden Jan. 5 is set to increase Social Security payments for more than 2 million former and current public employees. The Social Security Fairness Act eliminates two provisions—the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—that limited Social Security benefits for public employees with public pensions from work not covered by Social Security, according to the Social Security Administration (SSA). The elimination of the WEP would see monthly benefits rise by an average of $360 for 2.1 million Social Security beneficiaries in December 2025, according to Congressional Budget Office (CBO) estimates. Eliminating the GPO, meanwhile, would see monthly benefits increase by an average of $700 for 380,000 spouses and by an average of $1,190 for 390,000 surviving spouses. Lee Saunders, president of the American Federation of State, County and Municipal Employees (AFSCME), called the rescinding of the GPO and WEP a “historic victory” that followed “decades of relentless organizing.” “Thousands of AFSCME members can now retire with peace of mind, and passionate jobseekers will be inspired to pursue these critical careers knowing their futures will be secure,” Saunders stated. “It’s a game-changer for public service.” The SSA said it is still evaluating how to implement the act. according to Equable. Equable estimated it will take years of performances similar to 2024 to break the “pension debt paralysis” prevalent in public pension plans. Washington D.C., Nebraska and Tennessee had the highest ratios of funded pension plans in 2024 with 112.5%, 108.5% and 107.9%, respectively. States with the lowest ratios of funded pension plans in 2024 included Illinois (51.6%), Kentucky (54.1%) and New Jersey (56.6%). A 2024 survey by the MissionSquare Research Institute found that 81% of public employees expressed concern that they will not have enough money to last throughout retirement, with 78% saying they are worried about not having enough 10 BUSINESS VIEW MAGAZINE VOLUME 12, ISSUE 01
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