A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p class="wp-block-paragraph">Most PERA members do not pay into Social Security while they work for a PERA employer; PERA serves as a substitute for Social Security, providing retirement income as well as survivor and disability benefits. However, many PERA members also expect to receive a Social Security benefit in retirement due to outside private-sector work.</p>



<p class="wp-block-paragraph">We’re taking a look at where things stand and the latest efforts to improve Social Security’s finances.</p>


<div class="callout-heading"><p><em>Did you know? Colorado PERA has been providing public employees with retirement and other benefits since 1931, longer than Social Security. PERA and Social Security are separate benefit programs and neither affects the other. Learn more about <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noopener">PERA and Social Security</a>.</em></p>
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<h2 class="wp-block-heading has-dark-blue-river-color has-text-color has-medium-font-size"><strong>Social Security’s financial health</strong></h2>



<p class="wp-block-paragraph">Every year, the Social Security and Medicare Boards of Trustees release a report outlining the financial status of the trust funds from which Social Security and Medicare benefits are paid. According to <a href="https://www.ssa.gov/oact/trsum/" target="_blank" rel="noreferrer noopener" class="broken_link">the most recent report</a>, the Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivor benefits, has enough money to pay full benefits until late 2032. The Disability Insurance (DI) Trust Fund is in better shape and is expected to continue paying full benefits through at least 2100. If the two funds were combined, they would deplete their reserves in 2034, according to the report.</p>



<p class="wp-block-paragraph">It’s important to note that the OASI trust fund will not run completely out of money in 2032; contributions continue to flow into the trust fund through federal payroll taxes, and that regular income is enough to fund 78 percent of scheduled benefits, according to the Trustees report.</p>



<h2 class="wp-block-heading has-dark-blue-river-color has-text-color has-medium-font-size"><strong>Windfall Elimination Provision and Government Pension Offset</strong></h2>



<p class="wp-block-paragraph">In early 2025, then-President Joe Biden signed into law the Social Security Fairness Act, which repealed Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP and GPO had been in place for decades and reduced Social Security benefits for retirees who also received a pension for work not covered by Social Security.</p>



<p class="wp-block-paragraph">For PERA members, that means retirees who previously saw their Social Security benefits reduced because they receive a benefit from PERA now receive full earned benefits from both PERA and Social Security.</p>



<p class="wp-block-paragraph">That’s great news for retirees, but the higher benefit payments from Social Security put additional strain on the system’s finances and <a href="https://finance.yahoo.com/news/social-security-fairness-act-speeds-up-the-trust-funds-insolvency-wharton-professor-says-160245952.html" target="_blank" rel="noreferrer noopener">may speed up the rate</a> at which the OASI trust fund spends down its reserves by six months.</p>



<h2 class="wp-block-heading has-dark-blue-river-color has-text-color has-medium-font-size"><strong>Proposing solutions</strong></h2>



<p class="wp-block-paragraph">The latest Social Security Trustees report has renewed interest among Congressional lawmakers and others to find solutions to the program’s funding struggles.</p>



<p class="wp-block-paragraph">One such proposal comes from Sen. Bernie Moreno of Ohio and Sen. Elizabeth Warren of Massachusetts. They’re calling for <a href="https://abcnews.com/Politics/social-security-fix-proposed-sens-elizabeth-warren-bernie/story?id=134253518" target="_blank" rel="noreferrer noopener">lifting the current cap</a> on income subject to payroll taxes for Social Security, which would result in higher earners paying more into the system. Doing so could add trillions of dollars in additional funding to Social Security over the next decade, they say.</p>



<p class="wp-block-paragraph">A separate proposal from the nonpartisan Committee for a Responsible Federal Budget (CRFB) focuses on reducing expenses by <a href="https://www.investopedia.com/proposal-aims-to-cap-social-security-benefits-above-usd100-000-for-couples-to-ad-12019744" target="_blank" rel="noreferrer noopener" class="broken_link">placing a limit on Social Security benefits</a>. Under the CRFB proposal, benefits would be capped at $100,000 per year, which could save the program more than $100 billion over 10 years, the group said. </p>



<p class="wp-block-paragraph">To encourage action on the issue, a bipartisan group of lawmakers <a href="https://www.cnbc.com/2026/07/14/social-security-reform.html" target="_blank" rel="noreferrer noopener">introduced a bill known as the PROMISE Act</a>, which lays out procedures for introducing and considering legislation to improve Social Security’s solvency. The bill would also create a process for reviewing and addressing the system’s finances every 10 years to ensure Congress is proactive in tackling future shortfalls.</p>



<p class="wp-block-paragraph"><em>PERA On The Issues</em> will continue to follow this issue and provide updates as legislators tackle Social Security’s finances. <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">Subscribe to our biweekly newsletter</a> to receive updates right in your email inbox.</p>


The U.S. Capitol Building with a Social Security card and dollar bills superimposed.

The Latest on Social Security’s Finances and Future