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WEP/GPO REFORM HINGE ON HEALTHCARE DEBATE PDF Print E-mail
NOVEMBER 2009: For months the Association has been reporting that 2010 is the likely time period in which Social Security reform will be debated in Congress.

The combination of a Democratic president and Congress, both of which support the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), has breathed new life into grassroots efforts across the country.

Retiree organizations and unions from Maine to California are working together to facilitate a repeal of the two laws, which have reduced or eliminated the Social Security benefits earned by retired public employees. Over 5 million Americans, spread across all 50 states, are now impacted by the two laws.

Social Security experts have repeatedly called on Congress to make changes to the national retirement program to help stabilize financing for future generations. Current reports predict that the system will become insolvent by 2037, if changes are not soon made.

However, the federal Medicare program is viewed as becoming insolvent as early as 2017. This issue is a large driving force behind health care reform efforts now underway in Washington.  President Obama has promised that action on Social Security reform will follow health care reform, perhaps as early as next year.

"Not a week goes by when we're not contacted by some group outside of Massachusetts, who is also working to repeal these two awful laws," said Association Legislative Liaison Shawn Duhamel. "In fact, I just recently received a call from a Republican State Senator from Wisconsin, who apparently has constituents effected by the WEP/GPO, and read our website.

"As we keep saying, this is a national problem that is beginning to gain a lot of support for something to finally be done to fix it. Congress needs to get through this health care reform debate, then it can focus on Social Security."

However, some Washington observers see the pitched partisan tone that the health care debate has taken as a prelude for what is to come as Congress attempts to overhaul the seventy-four year old Social Security system.
Long viewed by many as the "third-rail of American politics," Social Security is an emotionally charged, complicated issue to resolve. While it is highly unlikely that any changes will be proposed that would negatively impact the benefits now received by retirees, other provisions of a potential reform bill will likely be viewed as controversial in some quarters.

Conservative groups, many of whom have opposed Social Security since its creation in 1934, will likely come out strongly against any attempt to expand the program or raise payroll taxes to stabilize the trust fund. Since they already shoulder half of the Social Security payroll tax, employer organizations will also cry foul at the idea of raising revenues through higher taxes.

Baucus Central Figure

A figure central to both the health care reform debate, as well as a repeal of the WEP/GPO is Montana Senator Max Baucus. As chairman of the Finance Committee, Baucus is one of the most powerful members of US Senate. The Democrat has also become somewhat of a household name, in that he is now leading the effort to draft a comprehensive reform of the health care system.

The Senate Finance Committee, which is viewed by many to be among the most prestigious assignments in the Senate, has wide authority over a great many issues pending before Congress. All matters involving health care and Social Security must be reviewed by the Committee prior to being voted on by the Senate.

And while the Subcommittee on Social Security is chaired by Blanche Lincoln (AR), it is the chairman of the full Finance Committee, Baucus, who truly calls the shots. Senator John D. Rockefeller IV, (WV) and Kent Conrad (NM) are the ranking Democrats. Senators Chuck Grassley (IA), Orin Hatch (UT) and Olympia Snowe (ME), are the Committee's three top Republicans.

This so-called "gang of six" has been negotiating behind closed doors for months searching for a solution to health care reform. A similar process is likely to take place when Social Security is addressed. Massachusetts Senator John Kerry, who is fifth in rank on the Committee, has also emerged as a major player in both the health care and Social Security debates.

Kerry, who chairs the top-ranking Senate Foreign Relations Committee, has filled the void created by the death of Senator Ted Kennedy by taking on many of his former colleagues key issues.

"Max Baucus is a moderate, fiscally conservative Democrat. Coming from the Western US, he drives a hard bargain in terms of cost," explained Duhamel. "While the two issues may not seem connected, the outcome of the health care debate is going to have a major impact on when and how Social Security is addressed.

"Working with congressional leaders from outside of Massachusetts is essential to our future success on WEP/GPO. That is why we have worked so hard to build these national coalitions."

ED Note: Like Senator Kerry, Maine Senator Olympia Snowe (along with colleague Susan Collins) is a staunch supporter of WEP/GPO repeal.

 
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