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Talking Points on Government
Pension Offset and Windfall Elimination Provision
- Estimates
indicate that 9 out of 10 public employees affected by the Government
Pension Offset (GPO) lose their entire spousal benefit, even though
their deceased spouse paid Social Security taxes for many years. Some
300,000 individuals are losing an average of $3,600 a year due to the
GPO - an amount that can make the difference between self-sufficiency
and poverty. In fact, the loss of these benefits may make some people
eligible for needs-based assistance, such as food stamps.
- The Windfall
Elimination Provision (WEP) causes low-paid public employees outside the
Social Security system, like educators, to lose up to sixty percent of
their Social Security benefits.
- The GPO and WEP
have the harshest impact on those who can least afford the loss:
lower-income women.
- The GPO and WEP
discriminate against individuals who have chosen to serve their
communities or country in public jobs.
- The GPO and WEP
substantially reduce benefits that workers and spouses had counted on
when planning their retirement.
- The GPO and WEP
impact teacher recruitment efforts. For example, individuals who have
worked in other careers are less likely to want to become teachers if
doing so will mean a loss of Social Security benefits they have
earned.
- Congress can take
immediate action to help people affected by the discriminatory GPO and
WEP. Bipartisan bills have been introduced to reduce the impact of both
provisions. Members of Congress should also support passage of H.R. 2638
and S. 1523, which would repeal both the GPO and WEP. H.R. 664 and S.
611, which would eliminate the GPO for the first $1,200 of combined
monthly benefits. In addition, Congress should support H.R. 1073, which
minimizes the impact of the WEP, and H.R. 848, which eliminates the WEP.
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