Benefit Bulletin: Social Security Benefits Of Public Workers Can Be Reduced. TSCL Is Working To Change That.

Benefit Bulletin: Social Security Benefits Of Public Workers Can Be Reduced. TSCL Is Working To Change That.

Edward Cates, Chairman of the Board, TSCL

Momentum is growing to fix two provisions of Social Security law that reduce the Social Security benefits of public employees such as firemen, teachers, postal workers, police, and others. The provisions reduce the Social Security benefits of those who earned those benefits through payroll tax withholdings under Social Security-covered jobs worked in addition to their public service jobs.

The Windfall Elimination Provision ( WEP) reduces the Social Security benefits of individuals who have also earned a public pension from a job not covered by Social Security. For those affected, Social Security uses a less generous benefits formula which adjusts the first part of the replacement rate from 90% to 40%.

The Government Pension Offset (GPO) affects the spousal benefits of individuals who worked in a federal, state, or local government job. Under the GPO, Social Security benefits are reduced by two-thirds of the government pension. If two-thirds of the government pension is more than the Social Security benefit, it can completely wipe out the Social Security widows’ or spousal benefit.

TSCL has been working hard in support of the bipartisan Social Security Fairness Act which would repeal both the WEP and the GPO. That bill, introduced by Representatives Abigail Spanberger (VA-07) and Garret Graves (LA-06), has more than 300 co-sponsors at a time when the House has been politically divided. The bill has also been introduced in the Senate and has 49 co-sponsors. Graves and Spanberger both have said they could eventually try to force a floor vote if the House Ways and Means Committee doesn’t act.

TSCL feels that the time has come to get rid of this terrible public policy. Those who have worked jobs covered by Social Security in addition to public jobs deserve their hard-earned Social Security benefits.

Rest assured we will be working to get this legislation passed, ending these unfair cuts to earned Social Security benefits.

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