An Update on HR-82 (Social Security Fairness Act of 2021) - NCPSSM
H.R.82 (titled the Social Security Fairness Act of 2021) proposed by Rep. Rodney Davis (R-IL) has advanced in Congress, advancing out of the Ways and Means Committee but still facing an uncertain future in the 117th Congress. In a post on www.ncpssm.org, Dan Adcock, NCPSSM’s Director of Government Relations and Policy Dan Adcock noted that “…the chances that bill will be considered by the full House grow dimmer as the number of days on the legislative calendar for the 117th Congress dwindles.”
The Davis bill has received bipartisan support, with more than 290 cosponsors, and calls for repeal of Social Security’s Windfall Elimination Provision and Government Pension Offset provision. In support of the legislation, Rep. Richard Neal (D-MA) offered these comments: “This bill aims to address longstanding problems of WEP and GPO. While well intentioned, these provisions penalize many hard-working public servants and their family members. After serving their communities for years, teachers, firefighters, police officers, and other public employees in certain states are hit with an unwelcome surprise after retiring, a reduction in their Social Security benefits due to WEP and GPO.”
NCPSSM, as well as the Association of Mature American Seniors (AMAC), has expressed support for change to WEP and GPO, but prefers that it be addressed in the context of overall reform and modernization of Social Security in the face of the program’s long-term solvency issues.
Read the NCPSSM post here and, for the text of H.R. 82, click here.
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An explanation of Social Security’s Adjustment to the Reduction Factor rule
I will be getting lump sump payment from OPERS when I retire from my county library job. I am 73 years old. Right now i am getting social security on my late husbands record. I myself worked less than 30 year and paid into social security. What do I need to do for GPO. Once the reduction of my social security is decided at my retirement, does it stay the same for the rest of my life?
Veena,
After you take your lump sum distribution from OPERS, you should contact Social Security (1.800.772.1213 or your local SS office) to inform them. Even though you are taking a lump sum OPERS distribution, you are still subject to the Government Pension Offset (GPO), and Social Security will determine a monthly equivalent amount based on the amount of your lump sum distribution and your life expectancy. Once they have determined your OPERS monthly equivalent amount, they will reduced your monthly Social Security benefit from your husband by 2/3rds (.67%) of the OPERS monthly equivalent amount. And yes, that reduction is permanent. As you may know, if you are also entitled to your own SS retirement benefit (from work outside of OPERS) your SS retirement benefit will be reduced by the Windfall Elimination Provision (WEP). WEP will reduced your own earned SS retirement benefit, and GPO will reduce any spousal or survivor benefit from your husband.
Russell Gloor
National Social Security Advisor
The AMAC Foundation
I have been retired for almost 19 years. My social security was cut by more than half, even though I had over 40 quarters. I social security should have been around $800.00+, instead I was penalized over half to $300.00+.
Fred,
From what you’ve shared, I presume that you have either a Federal or a State pension which was earned without contributing to Social Security, which means that Social Security’s Windfall Elimination Provision (WEP) would reduce any Social Security benefits you became entitled to. Having 40 or more “quarters” of Social Security benefits doesn’t automatically entitle you to full benefits – there are other factors which affect how much your benefit is. Those factors mainly include your age when you claim, and the monthly average of your lifetime earnings from which you contributed to Social Security. But the monthly payment you are entitle to from those factors will be reduced by the WEP provision if you have a separate pension which you earned without contributing to Social Security. That is a rule that was enacted in 1983 to correct what is viewed as a “windfall” compared to what other SS beneficiaries (who don’t have a “non-covered pension”) receive. You may find the information at this link informative: http://www.socialsecurityreport.org/ask-rusty-retired-public-servant-surprised-by-wep/
Russell Gloor
National Social Security Advisor
The AMAC Foundation