Transcript PRESENTATION BY - Social Security Fairness

The GPO/WEP, Why They Should Be Repealed!
Government Pension Offset
Windfall Elimination Provision
Prepared by Liz Curtis for SSFAIRNESS.COM
For use by public in fight to repeal the GPO/WEP
Shocking facts about Social Security
Even though you and/or your spouse
have paid the required minimum or
more into Social Security, your
benefits may be cut by thousands
of dollars or completely eliminated!
Your Social Security may be in jeopardy if:
You have had two jobs: one in which
you paid Social Security taxes and
therefore earned your own Social
Security credits and another job in
which you did not pay SS taxes.
Penalized by the Windfall Elimination
Provision (WEP).
Your Social Security may be in jeopardy if:
Your spouse of at least ten years has earned
Social Security credits. Penalized by the
Government Pension Offset (GPO).
a. You probably will lose all the
payments due you as a dependent
spouse. (e.g. a stay-at-home
childcare parent)
b. You will lose at least part, or
more often, all of the Social
Security retirement payments that
that normally go to the widow/er.
GPO losses = Further Penalties
You must pay a higher rate
Medicare premium if you lose
all Social Security benefits.
You will be denied the $255
burial payment sent by the
Social Security Administration to
other bereaved families, if you
are a widow/er who has lost all
spousal benefits.
Your retirement may be in double jeopardy
It is not uncommon to be
penalized by both the
Government Pension Offset
(GP0) and the Windfall
Elimination Provision (WEP).
GPO/WEP based on Faulty Assumptions
Social Security & public pensions are different.
The offsets were based on a decision to treat pensions from
certain public positions as if they were the same as benefits
from Social Security, despite the fact that these “non-covered”
state and local positions have nothing to do with Social
Security.
Offsets equitable or inequitable?
What is unjust about GPO/WEP?
Why Social Security and public pensions are different.
These pensions were earned separately and differently from
Social Security, yet they are used to reduce the amount of
Social Security benefits that a worker receives during
retirement. When participation is required by both Social
Security and also State and local pensions, the public pension
is earned and collected separately.
So, Social Security should also remain separate.
Federal Tax Law differs for Social
Security & public pensions
Federal tax law treats Social Security & public agency
pension benefits differently.
While federal income tax is collected on public agency
pensions, Social Security benefits are sheltered, often
completely, from this tax. State community property laws
may treat them differently, also. These two differences are
even more evidence that a public pension should not be
used to offset the amount of Social Security earned.
They are taxed differently; they are different!
Social Security taxes are paid
Therefore benefits should be paid
All who pay full Social Security contributions do not
receive full benefits.
The present GPO/WEP do not treat all citizens equally
when computing benefits. It is possible to pay Social
Security taxes of as much as $90,000 and perhaps more
and, yet, receive nothing in retirement benefits.
GPO/WEP equitable or inequitable?
Affordable cost to restore these
benefits which were duly paid for
The cost of repeal of the GPO/WEP is minimal
when compared to the total amount paid to
retirees annually. In addition, these benefits were
paid for by required Social Security taxes.
The cost of repeal of the GPO/WEP is only 2% of the
overall Social Security costs paid to recipients. Find
Estimated Trust Fund Information at
http://www.ssa.gov.
Justice must prevail.
GPO discriminates against women
The GPO penalizes more women than men.
The GPO currently penalizes about one half million
retirees. 79% of them are women. Of those affected,
the average non-covered pension for men was $961
more per month than those paid to women.
(Congressional Research Service)
More women suffer and earn less!
GPO/WEP = Social In$ecurity
GPO/WEP cuts to earned benefits are substantial,
commonly causing serious lifestyle reductions, sometimes
even to poverty levels.
74% of those affected by GPO lose their entire spousal benefits.
Even a pension of as little as $1,500/month can cause TOTAL
LOSS of needed survivor benefits. Few people can survive on
that amount without the addition of Social Security benefits
which have been fully paid for as required.
GPO = Loss of entire benefits for 79%
GPO/WEP not well publicized
Until recently, no law existed to inform employees
about the GPO/WEP penalties.
Large numbers of current public employees have not
been told their public service employment is jeopardizing
their already earned Social Security benefits.
Careers were chosen and retirement contracts entered
into without knowledge of the WEP/GPO penalties. The
law to notify new employees about the WEP/GPO only
went into effect in 2005.
Penalized, but not told!
In 2005 law to inform new employees
But, still not well understood
New Public employees still not well informed.
The law to require notification of new employees about
the WEP/GPO did not go into effect until 2005. Even with
notification, the WEP/GPO are so lacking in logic and
complex, that many of these new employees still do not
understand their long term financial effects.
GPO/WEP–not logical & difficult to understand
Serious information gap remains
Especially for those hired before 2005
and even pre-retirees
Furthermore, there has been no requirement
that employers inform those hired before 2005
of the effect that the GPO/WEP penalties will
have on their retirement income if they will be
Social Security recipients or beneficiaries. Some
pre-retirees have not even been informed when
counseled on retirement and what income to
expect.
Expected benefits disappear
With NO prior notification!
GPO/WEP = Heroes’ Penalties
The GPO/WEP penalizes our public servants.
• One third of all U.S. educators are in positions where they are
likely to be affected by the offsets, thereby, discouraging the
choice of teaching as a profession.
• State and local workers in 29 state and local governments and
18% of federal positions can be affected by the offsets.
Can we as a nation afford this?
GPO/WEP needs to be repealed!
The GPO/WEP do not treat all citizens in an
equitable manner when distributing Social Security
benefits.
Our government is built upon democratic principles, and
therefore all laws should abide by the principle of equal
rights for all citizens.
Change is needed for faulty provisions
Those who pay, should be those who receive
We must work for repeal of the unjust GPO/WEP!
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“Be the change you wish to see in the world”
Gandhi
Now is the time Social
Security changes are being
considered and there is a
window of opportunity. This
may be our last chance to
be “heard” for quite some
time to come.
Just as Gandhi persisted, we too must persist.
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