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A bill reintroduced Tuesday in the Senate aims to scale back a pension offset that reduces Social Security benefits for some federal retirees.

The bill (S. 1254), introduced by Sen. Barbara Mikulski, D-Md., would ease the burden of a 1977 law that prevents certain retirees from collecting both a government annuity and spousal Social Security benefits.

"I'm fighting to address this cruel and heartless rule, and call on Congress and the Bush administration to work to find a solution to this problem," Mikulski said. "Congress needs to know how important this issue is to our nation's seniors who have dedicated their lives to the public."

Before 1977, retirees who received pensions under the Civil Service Retirement System and did not pay into Social Security still qualified for full spousal Social Security benefits. The Government Pension Offset reduces the spousal benefit granted government retirees who did not pay Social Security taxes by an amount equal to two-thirds of their pension.

Mikulski's legislation would do away with the two-thirds offset unless the combined amount of the pension plus the Social Security spousal benefit exceeds $1,200 per month.

Mikulski introduced the measure in the last few sessions of Congress, but it failed to make it out of the Senate Finance Committee. Two bills with similar goals already have been introduced this session; H.R. 82 and S. 206 seek a full repeal of the pension offset and the Windfall Elimination Provision, under which Social Security benefits are reduced for retirees who spent much of their careers working for organizations that do not withhold Social Security taxes. Both bills are currently in committee.

Colleen Kelley, president of the National Treasury Employees Union, said the increasing bipartisan support for reform may mean better prospects for passage of at least one of the bills this session.

"Increasing numbers of members of Congress on both sides of the aisle are becoming aware of the problems the GPO and WEP cause federal retirees, and I am hopeful that Congress will act to modify these laws," she said.

Mikulski spokeswoman Melissa Schwartz said the estimated cost of the proposal is $5.6 billion over 10 years. A full repeal of GPO would cost about $38.1 billion over 10 years, she said.

According to the National Active and Retired Federal Employees Association, there are 390,000 Social Security beneficiaries currently affected by the government pension offset. "NARFE calls for Congress to immediately take up this discriminatory provision under the Social Security Act," said Margaret Baptiste, the group's president.

COMMENTS

• I retired from SSA as a technical expert after 25 years of work. The Govt pension offset is particularly unfair because it applies only to government workers and does not affect persons who receive other types of pensions based on work not covered by Social Security- such as ministers who elect not to pay into SSA, and foreign workers who receive pensions based on that foreign work. Chris S Posted July 21, 2008 10:26 PM
• I retired after 40 years with DOD and got caught up in the offset. I now draw $13 per month Social Security. It will never be more than that because when I get the annual COLA they round down and I never receive a penny more. Some day when Medicare goes up I will have to pay out of pocket. It's a shame that a person pays into Soc Sec but can't collect but some persons who have never paid a cent into the fund can draw more per month than I draw in an entire year. I EARNED IT LEGAL, let me draw what I deserve. Repeal this bill!!!! Kenneth A. Thompson Posted April 5, 2008 2:30 PM
• I am a widow who has no children at home and I am not 60. My husband passed away after we used his life insurance to pay for medical treatments due to Cancer. I was tols by Social Security that since I am not 60 I can't collect on my husbands Social Security. This is an unfair Law and it needs to be changed. It is hard enough to lose your spouse but widows also lose the financial support that our husbands gave us. This is something that this will correct. Not just for civil workers but for all Widows in America. We need to take care of all of our people. Ruby Behrman Posted March 18, 2008 3:36 PM