On June 27, 2000, the Social Security Subcommittee of the House Ways and Means Committee held a hearing on HR 1217, a bill introduced by Rep. William Jefferson (D-LA) to amend the Government Pension Offset (GPO).

Jefferson introduced HR 1217 in an effort to reduce the Social Security offset, and has attracted 244 cosponsors--a majority of the US House of Representatives.

The Government Pension Offset was enacted in 1977 by Congress to treat government pensions (such as civil service retirement) and survivor annuities as if they were Social Security benefits. In 1983, Congress changed the offset to its current two-thirds' offset.

The Government Pension Offset can affect any retiree who receives a civil service pension and Social Security, but it primarily affects widows or widowers eligible for spousal benefits. Women, who typically spend less time in the workforce, and earn lower wages when they do, have been disproportionally affected by the GPO.

GPO does not affect retirees who receive private pensions and Social Security.

Under HR 1217, retirees and widows/widowers affected by the Government Pension Offset would be allowed to receive a minimum of $1,200 per month before the offset provision could be imposed.

To explain how the current law works, Jefferson used the example of a widow eligible for civil service pension benefits of $600 per month and Social Security spousal benefits of $600 per month, for a total of $1,200 per month.

Under the current Government Pension Offset, 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, leaving the widow with a total monthly income of $800.

If HR 1217 becomes law, the widow's $1,200-per-month combined benefit would meet the $1,200 threshold and no Government Pension Offset would apply. As a result, the widow would receive the entire combined benefit of $1,200 per month.

The next step is for the Social Security Subcommittee to favorably markup HR 1217, thereby clearing it for the House Ways and Means Committee to do the same.

APWU Action Needed Now!

APWU members, including retirees and auxiliary members, are urged to immediately contact the members of the Ways and Means Committee to ask them to favorably report HR 1217 to the full House for passage. The Capitol switchboard number is 202-224-3121.

The Social Security Subcommittee members are:

Republicans: Shaw (FL), chairman; S. Johnson (TX); Collins (GA); Portman (OH); *Hayworth (AZ); *Weller (IL); Hulshof (MO); and McCrery (LA).

Democrats: *Matsui (CA), ranking member; S. Levin (MI); Tanner (TN); Doggett (TX); and *Cardin (MD).

In addition to subcommittee members, the following are members of the full Ways and Means Committee:

Republicans: Archer (TX), chairman; Crane (IL); Thomas (CA); *N. Johnson (CT); *Houghton (NY); Herger (CA); Camp (MI); *Ramstad (MN); Nussle (IA); Dunn (WA); *English (PA); *Watkins (OK); McInnis (CO); *Lewis (KY); and *Foley (FL).

Democrats: *Rangel (NY), ranking member; *Stark (CA); *Coyne (PA); McDermott (WA); *Kleczka (WI); *Lewis (GA); *Neal (MA); *McNulty (NY); *Jefferson (LA); *Becerra (CA); and *Thurman (FL).

*Cosponsors of HR 1217.

The APWU Committee On Political Action 2000 campaign, "Your Voice, Your Choice," continues to focus on political action, fundraising and educating members on critical issues as the presidential and congressional elections approach.

Members have done a great job so far this year raising COPA funds at state/multi-state conventions, conferences and educational seminars, and at local meetings and functions. But, APWU COPA must turn up its political momentum to face the challenges ahead--and that can't be done without each member's action and financial support.

States, Locals Support APWU COPA

Members attending the Indiana and Iowa state conventions are given special recognition by APWU COPA for raising outstanding amounts for political action. The Indiana Convention's grand total of $21,000.60 is the largest state contribution this year; the Kokomo Area Local led all Indiana locals with $6,259.60. Iowa Convention delegates contributed a whopping $19,117.48 to COPA; topping all Iowa locals was the Waterloo Local with $5,297.61.

APWU COPA appreciates all contributions and fundraising efforts. The following group contributions have been reported since the last News Service contributions list:

* Additional monies were received after the last contributions report, raising the Greater Grand Forks Area Local total to $1,725 and the North Dakota State Convention total to $4,675.

Important: For correct handling and acknowledgment, send all group contributions to COPA, APWU Accounting Department, 1300 L Street, NW, Washington, DC 20005.

Individual contributions should be sent to APWU/COPA, PO Box 96542, Washington, DC 20090-6542.

The Senate legislation was sponsored by Sen. Thad Cochran (R-MS). Under this bill, postal and federal employees and retirees will be eligible to purchase long-term care insurance. With postal and federal workers and retirees pooled together in a group, insurance companies will be able to offer such insurance below regular market rates for individuals. Those who decide to enroll will absorb the full cost of the premiums.

The Office of Personnel Management will be responsible for negotiating the benefits with insurance companies through a bidding process.

Clearance of the bill in the Senate committee was bipartisan, just as it was in the House; this allows the bill to be scheduled for floor action in the Senate.

Retirement Corrections Bill

The committee also adopted an amendment by Cochran which would provide some relief to postal and federal employees who were placed in the wrong retirement system. Last year the House passed HR 416, which directed federal agencies, such as the Postal Service, to make retroactive payments to the Thrift Savings Plan (TSP) for employees who switch to the Federal Employees' Retirement System (FERS).

The Senate amendment allows employees who were wrongfully placed in their retirement program to choose the Civil Service Retirement System (CSRS) or FERS, whichever is most suitable, but it does not require retroactive TSP payments.

Several things can happen as the legislation progresses to the Senate floor for consideration. For example, the House and Senate can negotiate a compromise between the competing versions, or the House can simply pass the Senate version, thus avoiding a conference and subsequent vote.

TSP Changes Advance

Another amendment accepted at the committee mark-up on June 14 would allow newly hired postal and federal employees to immediately make contributions to the Thrift Savings Plan.

Additionally, new employees who begin postal and/or federal service would be able to move their retirement savings into the TSP, just as some retirement accounts in the private sector are transferred from one plan to another when workers change jobs.

The Republican Plan

The House plan proposed by Republicans would rely on private insurance companies, backed by government subsidies and incentives, to sell policies to senior citizens. The government would assume as much as 35 percent of the cost of the private plans, but costs would be driven by market demands.

Under the GOP plan, the standard coverage would include a $250 deductible, payment of half of all drug costs up to $2,100 after the deductible has been reached, and coverage of all expenses greater than $6,000 in a year (catastrophic coverage). Premiums would be $35-$40 a month. However, insurers could vary the amount of deductibles, copayments and benefit limits for their plans.

The Clinton Plan

Earlier this year, President Bill Clinton proposed adding a prescription benefit to Medicare. Clinton's Medicare prescription drug plan has no deductible. It covers half of all drug costs up to $2,500 in the first year, rising to $5,000 once it is fully implemented. The monthly premiums would begin at $26 a month and eventually reach $52. The President's catastrophic coverage would cover all out-of-pocket expenses greater than $4,000.

Why the House GOP Plan Is Wrong

Given the increasing importance of prescription drugs in treating and preventing disease, and the ever-increasing cost of prescription medicine, America's seniors and disabled need affordable drug coverage. A Medicare prescription benefit must be guaranteed for all seniors.

Not a Guaranteed Medicare Benefit. The Medicare program provides a guarantee that seniors trust. No matter where they live, or how old they are, seniors pay the same premium and get the same Medicare benefit. The GOP plan would not guarantee that a prescription drug benefit will be a part of Medicare, as physician and hospital care services are.

Undependable, Confusing Plan. Under the GOP plan, insurers could vary the amount of deductibles, co-payments and benefit limits for their plans. This will lead to frustration as seniors try to compare one confusing plan with another. Insurers would be able to offer or withdraw plans, change benefits and raise rates at will.

Insurers Require Payoffs to Participate. The House GOP plan offers a prescription drug plan through a flawed private-sector "Medigap" insurance model, which currently offers very little drug coverage at very high costs. Insurers believe the House GOP plan is simply unworkable. A major insurance industry trade group says its members will not participate. Greater subsidies and incentives will be necessary to get insurers to offer prescription plans.

Not Affordable for Middle-Income Seniors. The House GOP plan does not provide any direct help for middle-class Medicare beneficiaries--defined as seniors with annual incomes of more than $12,600. Yet these seniors need help to afford their prescription medications. Instead, the GOP bill gives insurers a lump of money with the expectation--but no guarantee--that the insurers would pass savings down to seniors. The subsidies in the bill are so meager that even if all of the money were passed on to seniors, the plan would still be too expensive for many.

Limits Choice. The House GOP plan tries to reduce the cost of prescription drugs by limiting seniors to restrictive lists of prescription drugs and a limited choice of pharmacies. Seniors will be forced to go through an appeals process to take prescription drugs that are not on their insurer's list, even if their doctor has determined that they are medically necessary. This effectively puts insurers in charge of health care, rather than doctors.

The American Postal Workers Union urges Congress to reject the private insurance scheme promoted in the House GOP bill. The APWU supports a guaranteed prescription drug plan that is voluntary, available, and affordable to all seniors, and provided through the Medicare program. This benefit should be available to those in traditional (fee-for-service) Medicare as well as those in Medicare managed care. This kind of important Medicare reform will strengthen and improve Medicare for America's seniors and disabled.

The Senate has voted to block the Occupational Safety and Health Administration's (OSHA) new ergonomics rules designed to protect workers from severe musculoskeletal injuries.

The 57-41 vote came on June 22, 2000 on an amendment introduced by Sen. Mike Enzi (R-WY) to block OSHA's proposed ergonomics protections for one year. The Enzi amendment was proposed during debate on the fiscal year 2001 Labor-HHS and Education Appropriations bill (HR 4577). The Senate approved HR 4577 on June 30 with a 52-43 vote.

According to the AFL-CIO, more than 600,000 workers suffered serious injuries in 1998 as a result of ergonomic hazards in the workplace. Musculoskeletal disorders, or MSDs, are painful and sometimes crippling injuries to the tendons, muscles, ligaments, joints, cartilage and spinal discs. MSDs develop over time when there is a mismatch between a worker and the task he/she performs; ergonomics is the science of fitting the job to the worker. Postal workers are among those who often suffer painful and debilitating MSDs because of the work they do.

Ergonomics standards were developed by OSHA to protect workers from musculoskeletal injuries, and are the result of 10 years of scientific study.

Who's on Our Side

The Senate bill must be merged with the House bill, which accepted a similar amendment by Rep. Anne Northup (R-KY), before being sent to President Bill Clinton, who has promised to veto the legislation.

The Enzi amendment was adopted on a nearly straight party-line vote. Three Democrats broke party lines and voted with Enzi: Ernest Hollings (SC), John Breaux (LA) and Blanche Lincoln (AR). Only one Republican voted "no" on Enzi's amendment, Arlen Specter (PA). Two senators, Daniel Inouye (D-HI) and Barbara Boxer (D-CA), did not vote.

Leading the opposition to the Enzi amendment was Sen. Paul Wellstone (D-MN), who said, "We've got 600,000 workers every year who are severely injured. I view this amendment as nothing but blatant political interference."

Others also spoke out against the amendment. "The Republican position is to turn a deaf ear to these workers, ignoring the fact that they are facing debilitating injuries," said Sen. Richard Durbin (D-IL).

"The science is clear," observed Sen. Edward Kennedy (D-MA). "The question is whether we have the will and determination to protect American workers."