House Makes Repeal of Windfall Elimination, Government Pension Offset a Possibility
Late last month, the Social Security Fairness Act (H.R. 82) reached a new milestone in the House of Representatives: 294 co-sponsors. Per House rules, bills with more than 290 co-sponsors are automatically placed on the Consensus Calendar, effectively ensuring a floor vote following the chamber's recess.
The passage of H.R. 82 would eliminate two provisions of the Social Security Act of 1935 to the benefit of more than 2 million retirees. This bill repeals the Windfall Elimination Provision (WEP), which in some cases reduces Social Security benefits for individuals receiving a pension or disability benefit from an employer who did not withhold taxes from their wages. In particular, the WEP applies to local, state, and federal retirees who began their employment in government before 1983 and are covered by the Civil Service Retirement System (CSRS). The employees that fall under CSRS do not contribute toward Social Security and are therefore not eligible to receive any Social Security benefits when they retire.
The National Active and Retired Federal Employees (NARFE) Association reports that WEP can result in a $512 reduction monthly in benefits compared to their colleagues who do not fall under the CSRS.
H.R. 82 also terminates the Government Pension Offset (GPO). Enacted in 1977, the GPO prevents a surviving spouse from collecting both a government annuity based on their own work in non-Social Security covered employment and Social Security benefits based on their spouse’s work record. For example, a spouse who receives a civil service annuity of $900 per month based on their own earnings also applies for a Social Security widower’s benefit of $500. As two-thirds of their annuity offsets the Social Security spouse’s benefit, they wouldn't receive the additional annuity typically allotted to a spouse of a former government employee.
NARFE has been a firm supporter of the legislation, citing its benefits for federal retirees burdened by these provisions.
“These unfair penalties significantly reduce Social Security benefits for more than 2 million beneficiaries, drastically affecting retirees living on fixed income," stated NARFE National President Ken Thomas. “NARFE has pushed for years to repeal the unfair WEP and GPO penalties. Today, with the support of 294 lawmakers, we are closer than ever to righting this wrong.”
Rep. Rodney Davis (R-IL) introduced the bill in October 2021 and it garnered immediate bipartisan support.
“The Social Security Fairness Act ensures that public servants like police officers who work a second job or change careers after years of service will not face a possible 40 percent reduction in their Social Security benefits,” Rep. Davis said. “By repealing these outdated provisions that unfairly penalize public employees in Illinois, we can provide some certainty to retirees while helping to recruit the next generation of public servants.”
Rep. Abigail Spanberger (D-VA) pushed earlier this month for a House vote joined by Rep. Garret Graves (R-LA).
“The Social Security Fairness Act recognizes the tremendous sacrifices that come with serving our communities, our states, and our country. At this moment, there is strong, bipartisan momentum for delivering long overdue peace of mind to America’s public servants by eliminating the WEP and the GPO. We need to get it done,” Rep. Spanberger stated. “As a Representative of many current and retired federal employees, law enforcement officers, and educators, I am committed to moving our legislation forward and finally fixing this wrong.”
“No one goes into public service to make big money. They do it to make a big difference," Rep. Graves said. "We have rallied support for years to break through this logjam and get this overdue legislation enacted into law. It’s time to make it right for the countless teachers, police officers, firefighters, emergency responders, and all the local and state public servants who are being wrongly penalized under current law.”
If passed, the provision changes will apply to benefits payable after December 2021.