Congress readdressing Social Security offsets
Several bills targeting WEP, GPO have been reintroduced this session
By Michael Pramik, Ohio Public Employees Retirement System
Aug. 31, 2023 – The Ohio Public Employees Retirement System has steadfastly backed efforts in Congress to update Social Security’s rules on the Windfall Elimination Provision and the Government Pension Offset.
Both provisions can have a negative effect on our members because, in many cases, they reduce the Social Security benefit for those who have worked in both the private and public sectors.
OPERS expressed support for two pieces of federal legislation last year that would have reformed the Windfall Elimination Provision, or WEP, and provided a measure of relief for our members and retirees who have been impacted by the offset. While the previous session of Congress ended without action on either one, one of the reform measures and a repeal effort have been reintroduced this year.
Massachusetts Rep. Richard Neal has reintroduced his Public Servants Protection and Fairness Act, which would replace the existing WEP formula with a new proportional formula that takes non-Social Security-covered service into account when calculating Social Security benefits. Neal brought the bill to the House in the 2019 and 2021 sessions as well.
The new proportional formula would be in place for those turning 62 in 2025 or later. Additionally, the bill would offer “relief payments” to current retirees who are impacted by the WEP and would include a benefit guarantee that no current or future retiree would be worse off because of the bill.
Another effort to address the WEP and GPO was reintroduced in the Senate in March, by Ohio’s Sherrod Brown. A companion bill in the House, the Social Security Fairness Act, was also reintroduced – by Rep. Garrett Graves, R-La., and Abigail Spanberger, D-Va. They would eliminate both the WEP and the GPO.
Sponsors of the Social Security Fairness Act nearly forced a floor vote on the bill last year. However, they were ultimately prevented from moving forward because of the high cost of the bill and its impact on the Social Security trust fund’s long-term solvency.
OPERS has expressed support over the past four decades for several pieces of federal legislation that would reduce the ill effects of these Social Security provisions, and we also back local efforts in the debate.
In May, we offered written testimony in support of Ohio House Concurrent Resolution 6, which urges Congress to repeal the WEP. This resolution was sponsored by Rep. Angela King, R-Celina, and Rep. Phil Plummer, R-Dayton.
In our letter, we noted that Ohio is in a prime position to be an advocate for change regarding the WEP and GPO. More than 150,000 retired workers here currently are impacted by the WEP. That’s nearly 9 percent of all Social Security beneficiaries within the state.
As said in our letter of support for the Ohio concurrent resolution, we believe the WEP produces inequitable results for OPERS retirees who also draw Social Security retirement benefits.
As our letter further states:
“These offsets are applied at a time in most workers’ lives that they are least able to adapt to the loss of anticipated retirement income. They represent a violation of trust for workers who chose a career of public service, not always realizing that the Social Security benefits they thought they earned would be significantly reduced as a result.”
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.
Please try anything possible to help us retirees with any help possible with the windfall…I worked for the county for 30 years and also worked outside the sector for many years to help my daughter and I survive as I didn’t make very much…I’m a divorced parent and really would appreciate any help you could provide! Thank you in advance! Life is hard even at my age
Congress currently has 289 cosponsors ( needs 290 )and 44 Senators! Since August was a vacation month we are hoping to get more cosponsors in September and hopefully get things moving! Thanks to Garrett Graves (Louisiana) and Abigail Spanberger of Virginia for all their help with Congress!
Thank you and Sen. Brown for your continuing efforts in the WEP fiasco. I got caught by WEP when I retired from service in Butler County even though I had more the enough social security quarters (five years in the private sector and 21 years of military service) PRIOR to my employment with Butler County. Hopefully some kind of favorable action will be forthcoming. Again, thank you
This has been on the books as Law since the early 1970’s !! It’s 2023 times have change since then!! And the Laws should Represent the times they are meant to Govern. Why am I being punished Financially for working 20 plus years in the Private Sector just because I work for the State for 20 plus years!!! I paid into both!! Not FAIR!!
People who want to eliminate WEP don’t understand WEP. It is actually a fair regulation. Without WEP, PERS participants would be treated by Social Security as if you were a “low wage earner” — when in fact, you weren’t — you just switched to a different retirement system and were ***no longer paying into Social Security***. I know logic and truth hurts sometimes, but facts are facts.
Great news!
This always kind of makes me smile. Each year when OPERS is ready to announce the pittance of COLA some retirees will receive, the organization starts writing about Social Security and WEP. I always wonder if this is to distract us from thinking about the small COLA we receive. However, we at least receive something, and I do give thanks for that.
Cheryl,
The WEP/GPO blog had nothing to do with the COLA. We noticed that the federal bills had been reintroduced, so we wanted our members to know that.
We also annually announce the inflation-based COLA amount, which was written into Ohio law more than a decade ago, soon after we know what it will be.
If the income caps on contributions to social security were eliminated, the solvency of the trust fund would not be in question. Professional athletes in the five major sports alone would contribute hundreds of millions each year, let alone how much celebrities, C-level execs, and others would contribute. As an example, if there were salary cap, using 2014 payroll of the MLB, $173.5 Million would have been contributed in total.
Retired after 34 years of service. I am not currently eligible to collect SS benefits (have 34 “credits” but need 40 to collect). On the other hand, my spouse worked in the private sector only, and currently collects her “full” SS benefit. Like many of “us” here, I have certainly PAID considerable $$ into the SS fund during my limited years of private-sector employment. I would probably be happy just to recover the monies that I paid in. However, IF the punitive WEP/GPO provisions are removed, or at least more favorably modified, I would seriously consider returning to part-time work in the private sector to earn the additional 6 “credits” so that I would qualify. Under the current punitive provisions of the WEP/GPO, it just didn’t seem worthwhile (in terms of a significant monetary benefit) for me to return to private sector work, simply to obtain the required credits and collect a severely reduced SS benefit. Am I wrong on this position?
After working hard to raise my two children as a single mom working several jobs in the private sector I took a job with the county as a section 8 housing manager looking at it as a missional job to help those needing additional help. To my surprise at retirement I was 5a few quarters short of qualifying for my full social security benefit according to th “Windfall” provision so my social security was reduced by 40%! A real reward for being a public servant and working for almost 1/2 what I could have made in the private sector the last 12 yrs of my career. I worked since 18 yrs old and am now 70 trying to live on reduced benefits due to the Windfall provision. State employees should not be penalized for working for their state. Please do away with this unfair practice for hardworking County and state employees.
What can be done to ensure that the WEP ACT elimenation process does not die on the Congressional floor? WEP has been a law for far too long and does not justify retaining funds that constituents worked so hard for. We are being unjustifyingly penalized.
Darlene,
For many years OPERS has been interacting with Congress to come up with better solutions to those Social Security provisions. You can always contact your representatives in Congress and make your feelings known about WEP and GPO.