Senator Feinstein's response to my...

[YvonneCa]

...letter inquiring about WEP/GPO issues. (It may affect teachers here.)



Dear Ms. XXXXXXX:

Thank you for contacting me to express your support for repealing the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) provisions of the Social Security Act. I appreciate the time you took to write on this important issue and welcome the opportunity to respond.


I believe that the Federal Government should not discourage people from pursuing careers in public service. To address this, I have reintroduced the "Social Security Fairness Act" (S. 484) in the 111th Congress. By eliminating the WEP and GPO provisions of the Social Security Act, this bill would allow government pensioners and private sector retirees to earn the same percentage of their average career monthly earnings, rather than the unfair reduction of earnings government pensioners receive under current law. Current law not only makes it more difficult to recruit teachers, police officers and fire fighters, but it penalizes the invaluable public servants who have already given so much.

Please know that I will work hard with my colleagues to fix this inequity. Below is my statement in the Congressional Record further expressing my thoughts on this issue.

Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at [phone]. Best regards.



Sincerely,

Dianne Feinstein
United States Senator


For information about my position on issues of concern to California and the Nation or to subscribe to electronic e-mail updates, please visit http://feinstein.senate.gov/public/.


DF:to

Enclosure











U.S. Senator Dianne Feinstein

Statement on the Social Security Fairness Act

February 25, 2009



MR. PRESIDENT, I rise today to introduce legislation that will help protect the retirement benefits earned by our nation's public service workers.



I am pleased to be joined by my colleague from Maine, Senator Collins, as well as Senators Durbin, Kerry, Brown, Cardin, Boxer, Lincoln, Whitehouse, Nelson (FL), and Menendez.



This bill will repeal two provisions of the Social Security Act-the Government Pension Offset and the Windfall Elimination Provision-that unfairly reduce retirement benefits for teachers, police officers, and firefighters.



These two provisions were originally designed-the Government Pension Offset in 1977 and the Windfall Elimination Provision in 1983-to prevent public employees from being unduly enriched.



But, the practical effect is that those providing critical public services are unjustly penalized.



Approximately one and a half million federal, state, and municipal workers, as well as teachers and other school district employees, are held to a different standard when it comes to retirement benefits.



In California, the problem affects about 200,000 workers.



The Government Pension Offset reduces a public employee's Social Security spousal or survivor benefits by an amount equal to two-thirds of the individual's public pension.



In most cases, the Government Pension Offset eliminates the spousal benefit for which an individual qualifies. Three quarters of employees affected by the Government Pension Offset lose their entire spousal benefit, even though their spouse paid Social Security taxes for many years.



According to the Congressional Research Service, the Government Pension Offset provision alone reduces the retirement benefits earned by nearly 500,000 Americans each year, by an average of $500 per month.



The Windfall Elimination Provision reduces Social Security benefits by up to 50 percent for retirees who have paid into Social Security and also receive a public pension, such as from a state teacher retirement fund.



Private-sector retirees receive monthly Social Security checks equal to 90 percent of their first $744 in average monthly career earnings, plus 32 percent of monthly earnings up to $4,483 and 15 percent of earnings above $4,483.



Under the Windfall Elimination Provision, retired public employees, however, are only allowed to receive 40 percent of the first $744 in career monthly earnings, a penalty of over $350 per month.



Our legislation will allow government pensioners the chance to earn the same 90 percent to which non-government pension recipients are entitled.



For those living on fixed incomes, in some cases this represents the difference between a comfortable retirement and poverty.



Americans are hurting as our economy continues to contract.



More than $4 trillion in retirement savings were lost last year as markets destabilized and investments soured.



Retirees on fixed-incomes have been especially impacted by this recession. Every dollar matters to a retiree struggling to pay bills and meet mortgage obligations.



In California, more than 837,000 foreclosures were filed last year. The roughly $500 lost by beneficiaries to the Government Pension Offset each month may mean the difference between foreclosure and keeping one's home.



This is also critical for seniors residing in assisted living facilities or retirement communities concerned about paying the increasingly high cost of care.



Our nation's unemployment rate stands at 7.6 percent. And, in my state, over 1.7 million people are out of work. For those close to retirement who have lost their jobs, reductions in Social Security benefits compound an already challenging situation.



We must also eliminate the barriers which discourage many Americans from pursuing careers in public service.



This is more difficult now than ever, as states face mounting deficits and painful budget cuts. Communities must be able to retain their most qualified teachers, police officers, and fire fighters.



Unfortunately, the Government Pension Offset and Windfall Elimination Provision only contribute to this problem at a time when we should be doing everything we possibly can to bring the best and brightest to these careers.



It is estimated that schools will need to hire between 1.7 million and 2.7 million new teachers nationwide by the end of this year because of record enrollments in public schools.



The projected retirements of thousands of veteran teachers and critical efforts to reduce class sizes also necessitate hiring additional teachers.



California currently has roughly 310,000 teachers but will need to double this number over the next decade, to 600,000 teachers, in order to keep up with student enrollment levels.



It is counterintuitive that on the one-hand, policymakers seek to encourage people to change careers and enter the teaching profession, while on the other hand, those wishing to do so are told that their retirement benefits will be significantly reduced.



I certainly recognize that our federal budget deficit and national debt make repealing the Government Pension Offset and Windfall Elimination Provision difficult.



And, I remain open to considering any alternatives that will allow hard working public employees to keep the Social Security benefits to which they are entitled.



But, the bottom line is that we should respect, not penalize, our public service employees.



In the 110th Congress, 38 Senators joined me in cosponsoring this legislation. In the House of Representatives, 351 Members of Congress supported Representative Howard Berman's companion bill. Our bill enjoys the support of more than three quarters of the entire House of Representatives.



The reason for this support is because public servants across the country are calling on Congress to act.



It is long overdue that we resolve this inequity, and it is time that this body protects retirement benefits for public employees and formulates a more cohesive approach to promoting public sector employment.



So, I hope that my colleagues will join me in protecting the retirement benefits of our Nation's hard working public servants. We value their contributions and must ensure that all Americans receive the retirement benefits they have earned and deserve.

[tonysam]

1. A big, big rec from yours truly

I am directly affected by the WEP deal, since I was wrongly canned from my job, yet because I don't have 30 years in Social Security (I have 3 years to go) but have vesting in Nevada PERS, I can have my SS benefit reduced anyway.

[YvonneCa]

2. Do you need 30 years...

...to have enough credits for Social Security?

[tonysam]

3. You need 30 years paying into Social Security

so that SS doesn't reduce your SS benefit IF you worked in a state which opted out of paying Social Security for state and local employees, including teachers. Otherwise, it is reduced. It's worse if you have less than 20 years into paying SS.

The feds treat state retirement benefits as social security--IF it is a state which has opted out of paying into the system.

About 15 states do so.