WASHINGTON, D.C. — Congressman William Jefferson, D-LA, Wednesday vowed
to push for a full Social Security committee hearing on government pension
offset reform, one day after the Committee on Ways and Means rejected his
attempt to attach his reform proposal onto the "earnings penalty" repeal
legislation.
"Support for this important reform legislation grows every day. We now
have 207 bipartisan co-sponsors who were recruited mainly through the
grassroots lobbying effort of government retirees and widows who are
penalized by these onerous and odorous provision," Jefferson said.
Five more co-sponsors were added Tuesday. They are: Reps. John M.
McHugh, R-NY; Ron Paul, R-TX; Mike Thompson, D-CA; Frank D. Lucas, R-KY;
and Michael F. Doyle, D-PA.
"I'm asking all co-sponsors of government pension offset reform to join
me and write Chairman (Clay) Shaw, R-Fla, to hold a full hearing. The time
to reform the harsh and unfair pension offset law is now," said Jefferson,
who has championed the reform legislation for almost a decade. "Best of
all, it provides this needed security without threatening the long-term
viability of the Social Security system," he said.
Jefferson's legislation (H.R. 1217) exempts the first $1,200 of
combined pension income from current pension offset provisions, which now
reduce benefits for federal and other government retirees and ravage
benefits for widows who are eligible for both civil service pensions and
Social Security spousal benefits.
Here's how government pension offset penalizes works for public
employee or spouse eligible for a $600 government pension and $600 Social
Security benefit, or a combined $1,200 monthly benefit. Current law will
reduce the Social Security benefit by two-thirds, leaving a combined $800
monthly benefit.
Jefferson's reform legislation repeals the offset provision for any
combined retirement benefit totaling $1,200, or less. Offset provisions
would continue to apply on Social Security benefits that exceed the $1,200
threshold.