I started this post back in March, titling it gut punch from the Feds, but I never finished it. Here we are at the end of the year and that gut-punch—a fiscal one that drained the life out of me this whole year—has been pulled. And pulled retroactively, no less, to the end of 2023: good deal! And, as well it should have!
Since entering the Amurikan to workforce in 1975, I worked enough ‘quarters’ and payed into the system to qualify for Social Security (SocSec). Not a whole lot, but some. So when I was planning what my meager retirement finances would look like, I used the numbers that SocSec officially generated for me based on those earnings. As I lived overseas for a much of my adult life, I had acquired a small pension in Iceland, an even smaller one from Finland, and recently a few dollars from the state of Colorado: together these totaled a few hundred dollars. However, unbeknownst to me—okay, shitty due-diligence on my part—there was a law on the federal books called the Windfall Elimination Provision which dictated through bilateral agreements with, for example, Iceland and Finland, that my SocSec in the United States would be penalized by 60% of the total value of my other pensions. Suddenly I was confronted by the realization that my Social Security in the US would shrink by more than $400/mo. that’s a lot of money when the total was only $1000/mo to begin with and the total of all pensions is less than $1500/mo before taxes.
Because the law mainly applied to anyone receiving a pension in the US—several million people—the 118th Congress, after 20 years of wrangling, came to the conclusion that there were too many valuable constituents getting screwed by this ‘provision’—teachers, police, fire-fighters, other municipal workers, and folks like me with international pensions. I still don’t understand the original rationale for the initiation of the WEP in the 1970s, like any of us were really making a huge ‘windfall’ … ever, while working or now in ‘retirement’. Sheesh. H.R.82 – Social Security Fairness Act of 2023 was passed last week by the House and Senate, and signed into law by the President. It is retroactive to December 2023, right before I parted from the CGS and had to pull the trigger on my SocSec, so I should get all the withheld funds back.
On a side note, I want to recognize the Icelanders who run their pension system, how professional, quick, accurate, informed, friendly, and efficient they have been to work with. It took all of four minutes to get set up at their office in Reykjavík. Same with the Finns, a humane experience with their very funny sense of humor. To the contrary, as I was navigating this issue at the beginning, the woman in the Denver SocSec office, with whom I could only *fax* (!!!) was quite the nasty character. The offices have an armed Federal guard (oh, wait, that’s supposed to make me *feel safe*?), and the *fax* technology issue was simply incomprehensible (and completely unacceptable in 2024!).
I was going to thank the politicians who made the repeal happen, but research into that made me nauseous. The Social Security Fairness Act was submitted to every Congress back to 2000! Duly noted: how, towards the final vote, most Republicans started to pile-on for a free ride of positive press after they had long-opposed passage. Pragmatic and corrupted power-seekers all, no kudos to any of them that I hope to receive my just payments—as I *should have* at the beginning. That modest increase will help cover ever-rising utility, medical, and food bills!