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WEP/GPO Repeal Gains Ground PDF Print E-mail
MAY 2005 - Now Supported By Majority In House - Legislation that would repeal both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) has quickly gained the support of a majority of members of the US House of Representatives.

With 220 cosponsors, H.R. 147, filed by California Congressman Howard “Buck” McKeon, has surpassed the “magic number” of 218 and now has enough support to be passed by a vote of the House. The bill is currently before the House Subcommittee on Social Security.

As we have previously reported, the Subcommittee is chaired by Congressman James McCrey (R-LA). While the Subcommittee is busy analyzing the various bills under its purview, no specific date has been set for H.R. 147 to receive a public hearing.

Association officials are thankful that all ten Massachusetts congressmen have signed onto the bill. Rep. Richard Neal (D-Springfield), who is a member of the Ways and Means Committee and a member of the Social Security Subcommittee, has been a key supporter of the repeal from within the Committee.

“A lot of work is being put forth to advance this bill beyond the Subcommittee this year,” said Association General Counsel Bill Rehrey. “Receiving such a large outpouring of support, this early in the Congressional session, is a big step forward. Whether through passage of H.R. 147 or as part of a larger Social Security reform law, we are cautiously optimistic that this issue will finally be addressed.”

Members may recall that the Association belongs to several national coalitions, which have been organized with the common goal of WEP/GPO repeal. Following a series of meetings in Washington over the winter, in which the Association met with representatives from other affected states, along with Congressional leaders, the general consensus is that WEP/GPO will likely be addressed as part of the larger “reform” legislation.

Skepticism Over Privatization

Over the past months, members have expressed increased frustration at the lack of national attention being paid to the WEP/GPO issues. Most national news programs and publications, while recently having devoted much time to the issue of Social Security, are focused on the larger issues facing the country as a whole.

The WEP/GPO laws impact those public retirees who did not contribute towards Social Security as public employees. As members know, the majority of public employees in seven states (CA, CO, IL, LA, OH, TX, MA) do not participate in Social Security, and are therefore subject to the offsets upon retirement.

This year, President George W. Bush has brought attention to the overall issue of Social Security with his proposal to both “reform” and privatize a portion of the program. With Bush's proposal centering on controversial changes that would impact nearly all Americans, it is understandable that most of the media attention is focused on the larger issue.

Not that the big picture is lost on Association members. In a recent informal poll, an overwhelming majority said that while they feel some change is needed to ensure Social Security's future, they are highly skeptical of the President's proposal. The concern hinges upon the issue of privatization, whereby a portion of one's Social Security contribution would be shifted into a private investment account similar to a 401(k).

While the details of any such plan have yet to surface, it is known that upon the creation of the so-called private accounts, the basic Social Security benefit would be reduced. The concept is that retirees would make up the reduction in Social Security with the earnings from their private account. However, unlike Social Security, the benefits paid through the private accounts are not guaranteed and are subject to trends of the financial markets.

“Even though the President has made it clear that current retirees are not impacted by his plan, our members are still concerned about the future of Social Security. Retirees are thinking about their children and grandchildren and do not want the guarantee of a retirement benefit taken away from them,” explained Association President Ralph White. “In practice, Social Security is the largest defined benefit plan in the country. Similar to our pension system, those benefits are guaranteed.”
Political observers have pointed to late fall as a deadline of sorts for Congressional action on Social Security reform, prior to the beginning of the 2006 election cycle. “The President has put his reputation on the line to move a bill this year. We will keep the pressure on and remain vigilant to ensure the WEP/GPO are also addressed,” continued White.

 
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