Last Saturday, President Joe Biden signed the Social Security Fairness Act, which repeals provisions that reduce Social Security benefits for individuals who receive other benefits, including a pension from a state or local government.
With the passage of this law, it is unclear at the current time what future withholding obligations will exist for municipal governments and employees eligible for a public pension upon retirement.
The Social Security Administration is evaluating how to implement the act and will provide ongoing guidance. The League has reached out to our federal partner, the National League of Cities, as well as the League Labor Counsel to discern what potential changes need to be implemented on a going forward basis. We will report back when information is available.
We encourage you to share this information with your Finance Officer.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.