Coloradans hopeful for Social Security benefits through new federal legislation
There is a push at the federal level to help get Social Security benefits back to those who are losing out. It's called the Social Security Fairness Act and it repeals provisions that reduce benefits for those who receive other benefits like pensions.
It is a job that has given Denver firefighters like Donnie Nuanes and Chris Ferguson a sense of renewed purpose.
"Completing my 24th year," said Nuanes. "Will be starting my 25th year here shortly."
Nuanes worked in the trucking business for 18 years before switching over to the public sector to pursue his dream job as a firefighter.
For Ferguson, it was somewhat of a similar path.
"I've been a firefighter for 13 years," he said. "I worked in the private sector prior to coming to the fire department. I got on at 43, so I do have time paying into Social Security before coming on this job.
However, taking on this career later in life, after working in the private sector, has disadvantaged their chances of retiring early, in part because of existing federal policies preventing them from cashing in on their social security benefits.
"I'm getting penalized because I have a public pension and it's no different if I would've had a 401k working a private sector," said Ferguson. "I think I would've lost like $1,300 a month indefinitely till I passed away."
Right now, existing federal policies, like the windfall elimination provision (WEP) and government pension offset (GPO) impact how much, if any, social security benefits a person could receive if they ever worked in the private sector before and or after taking on a public sector job that receives a pension. This impacts jobs like teachers, firefighters, police, postal workers and other public sector roles.
"We have a lot of members that work off-duty jobs to make ends meet," said Ferguson. "Any public servant should not get penalized for being a public servant."
Yet, the Social Security Fairness Act stands to repeal these existing policies so people like Nuanes and Ferguson can receive both their pension and social security benefits, as well as roughly 100,000 Coloradans in the same situation.
"This additional money would be really important," said Andrew Roth, CEO and Executive Director at the Colorado Public Employee's Retirement Association (PERA).
Roth says they are supportive of this measure, which continues to receive bipartisan support in Congress because this legislation will give more of their members financial and retirement security.
"This repeal allows for those Coloradans to receive a larger benefit than they otherwise would have under the WEP and the GPO," said Roth.
Spouses would also stand to benefit if this repeal passes because it wouldn't put barriers on a person working in the public sector's ability to receive their loved one's social security benefits if they pass away.
However, there are still some concerns with the passage of this bill, particularly whether these changes could contribute to social security benefits running out at a quicker rate.
"I think most folks are aware that the social security trust fund will start to kind of take in less than it pays out in the next decade, and so that's absolutely a consideration that the policymakers on Capitol Hill have to contend with," said Roth.
For people like Nuanes, though, its money he feels he has worked hard to receive and that could help him retire sooner.
"It will make me whole again," said Nuanes.
"Definitely looking at retiring now if I get this extra money," said Ferguson. "That way, I can hopefully enjoy my life and retire, and not having to spend more time in the back of a fire truck at an older age."
The Senate is expected to hold a vote on the Social Security Fairness Act in the final legislative days of the year before it heads to the president's desk.
