New WEP fix introduced in Congress, again
John Sullivan describes legislation introduced by Rep. Richard Neal (D-MA) to change the formula for Social Security’s Windfall Elimination provision (WEP). Public employees in the handful of states who did not make payroll tax contributions through those jobs but had Social Security earnings (and thus contributions) in an earlier or later career are hit by the WEP. The “fix” here is to be sure no one loses any more, and there are even $150 per month relief payments in this bill. Read piece here.
Note: AMAC has fought for WEP repeal or reform for years but prefers it be part of a more comprehensive overhaul of Social Security to make the program financially solvent over the long term. WEP repeal or reform does cost the Social Security Trust Fund money. Not covered in this piece is the Government Pension Offset (GPO), which experts tend to agree is even more onerous in how it penalizes. AMAC’s Social Security Guarantee is here: