WEP & GPO Dilemma
Much has been written for decades about whether the Windfall Elimination Provision (WEP) and Government Offset Proviso (GPO) are fair. Both reduce some public employee pensions, specifically affecting those who had some time in the Social Security system but usually many more years out of the system. Alicia Munnell of MarketWatch explains the rationale behind these 1983 provisions. She also explores a reform effort to mitigate the so-called “penalty” as proposed in a bill by Rep. Kevin Brady (R-TX). Finally, she explains why ultimately, in her view, all state and local employees not now covered by Social Security should be. Full piece here.