GPO/WEP Update

JANUARY 2003
- When the new Congress convenes its 108th Session this January,
legislation, repealing or otherwise providing relief from Social
Security's Government Pension Offset (GPO) and Windfall Elimination
Provision (WEP), will again be introduced. According to Legislative
Chairman Bill Hill, "We expect that support for GPO and WEP relief
bills will be stronger than ever as the number of retirees and
employees hurt by these federal laws continues to grow - not only here
in Massachusetts but also in another 26 states.

"Currently,
over 600,000 Social Security recipients have their benefits reduced by
the WEP with the number growing by about 60,000 annually. As for the
GPO, the number being hurt is about 335,000, and it's climbing by about
15,000 each year."

Association
officials will continue to work closely with the coalition - CARE
(Coalition to Assure Retirement Equity). "Success can only be achieved
through a coordinated national effort, like CARE," continues Hill.

"One
can only speculate now whether the current political landscape - with
the Republicans regaining control of the Senate - will help or hinder
progress on these issues. We are confident this Congress will provide
the relief that our members and the other affected retirees deserve."

The
following 26 states have public retirees and employees who could be
affected by either the GPO/WEP. Like Massachusetts, the 6 states in
bold have almost all or a large majority of their employees not
contributing to Social Security, and, therefore, potentially affected
by these laws as retirees. The remaining 20 states are ranked in terms
of the percent of employees who may be impacted (66-16%):

California
Colorado
Illinois
Louisiana
Ohio
Texas
Florida
New York
Nevada
Connecticut
Kentucky
Minnesota
Georgia
Missouri
Michigan
Tennessee
Wisconsin
Washington
Indiana
Pennsylvania
Alaska
Maine
Hawaii
Montana
New Mexico
New Hampshire
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