Legislative Update For The Week Ending October 14, 2011

Legislative Update For The Week Ending October 14, 2011

This week on Capitol Hill, TSCL-backed H.R. 1332 (Social
Security Fairness Act
which includes pension offset and windfall
elimination) gained more co-sponsors while the Joint Select Committee on Deficit
Reduction (Super Committee) remained a hot topic.

Special Committee on Aging Offers Reform Recommendations

On Wednesday, the Senate Special Committee on Aging convened for a
hearing on healthcare reform proposals to be sent to the Joint Select Committee
on Deficit Reduction.  The hearing featured a panel of experts from various
think-tank organizations who offered short and long-term solutions to be
considered by the committee.

In addition, Committee Chair Sen. Herb Kohl (WI) offered three
alternatives of his own in a letter to the Super Committee.  All aiming to
reform Medicare, the Chairman’s proposals were highlighted by his plan to
require drug manufacturers provide Medicare B with the same benefits that
Medicaid receives.   According to the Health and Human Services Office of the
Inspector General, this plan would have saved Medicare at least two billion
dollars last year and over 24 billion dollars through the next ten years.

Support Grows for Key Government Offset Bill

Rep. Christopher Murphy (CT-5), Rep. Mike Thompson (CA-1), Rep.
Edward Royce (CA-40), Rep. Donald Manzullo (IL-16), and Rep. James McGovern
(MA-3) – signed on to Rep. Howard McKeon’s (CA-25) H.R. 1332 (Social
Security Fairness Act
which includes pension offset and windfall
elimination). The co-sponsor total is now up to 121.

This bill would enable retired school teachers, university
employees and thousands of civil servants to receive all of the Social Security
pensions for which they are entitled.  A Government Pension Offset (GPO) and
Windfall Elimination Provision (WEP) have long limited the full aid that these
beneficiaries desire.

Effective since 1977, the GPO prohibits retired spouses, widows,
and widowers from receiving the full benefits based on his or her spouse’s
employment.  The WEP was passed in 1983 and reduces the benefit of a retired or
disabled worker who also receives a federal, state or local government annuity
based on his or her earnings by up to 60 percent.

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