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Senator renews push to reduce burden of pension offset
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 am a retired teacher receiving a pension of 1800/mo. This just covers my housing & utilities. After waiting until full retirement age, I am due to receive SS benefit of $873/mo BEFORE the offset deduction. I estimate my yearly total yearly income will be about about $27,000. Is my pension so great that I do not deserve the FULL social security benefit that I paid my money into? No matter what spin you care to put on it, how is it fair??? fred hamm Posted October 2, 2009 6:41 PM
- When I first entered government service, I already had forty quarters paid into social security.Those entitled me to about over $600/mo, when I turned 66 plus. I could continue to draw that over $600 as long as I DIDN'T retire. When I retire (CSRS), that over $600 will be cut in half. Some windfall! I strongly agree that the GPO/WEP should be eliminated entirely. I am that person that worked to get my forty quarters that I paid into social security. While I was working those 10 years to get my 40 quarters there was no one yelling in my ear that when I reach 66 and apply for my Social Security Retirement Benefits, and retire under (CSRS)I would be penalized because of WEP. Again I strongly feel that GPO/WEP should be eliminated entirely. Ophelia Horne Posted May 26, 2009 2:42 PM
- I too urg to oveturn social security provisions affecting federal retirees. maxine dacosta Posted January 3, 2009 3:02 AM









