[Jefferson Report with Member's photo]

JEFFERSON RENEWS EFFORTS FOR GOVERNMENT PENSION OFFSET REFORM, 117 CO-SPONSORS JOIN FIGHT
March 24, 1999

WASHINGTON, D.C. -- On Wednesday, March 24, Congressman William Jefferson, D-LA, and 117 bipartisan original co-sponsors renewed efforts to modify government pension offset provisions that currently ravage benefits for retired public employees and widows who are eligible for both civil service pensions and Social Security spousal benefits.

Jefferson's legislation (HR 1217) would allow pensioners and widows affected by government pension offset provisions to receive a minimum $1,200 per month before offset provisions could be imposed.

"This is a question of fundamental fairness, and now is the time, as we address the future of Social Security, that Congress should resolve this unfair treatment of government employees," said Jefferson, who has championed the cause of government pension offset reform since his first term in 1991.

"Pension offset is punitive and hurts most public servants who worked as secretaries, school cafeteria workers, teacher's aides and others who generally receive lower pension benefits," Jefferson said.

The New Orleans congressman explained that the government's pension offset provisions can affect any retiree who receives a civil service pension and Social Security but primarily affects widows or widowers eligible for spousal benefits. Jefferson stressed that offset provisions do not affect retirees who receive private pensions and Social Security.

"If retirees on private pensions do not have Social Security benefits subject to offset, why should retirees who worked in the public service," Jefferson asked rhetorically.

Jefferson, a five-term congressman from New Orleans, praised the grassroots lobbying effort of the Coalition to Assure Retirement Equity (C.A.R.E.), which during the 105th Congress drove the number of co-sponsors to an all-time high of 183 and led to the 106th Congress' record high of 114 original co-sponsors.

"We're in a great position now to reach the magic number of 218 co-sponsors and finally pass the legislation," Jefferson predicted.

Here's how the current offset provisions affect a widow eligible for civil service pension benefits of $600 per month and Social Security spousal benefits of $600 per month, or $1,200 per month.

Under government pension offset provisions, the Social Security spousal benefit is reduced by two-thirds of the civil service pension benefit. In this case the original $600 Social Security benefit is reduced to $200, so that, coupled with the civil service pension benefits of $600, monthly income is reduced to $800.

If Jefferson's legislation is passed, the widow's $1,200 per month combined benefit meets the $1,200 threshold and no government pension offset would apply. As a result, the widow could receive the entire combined benefit of $1,200 per month.