WEP-GPO Repeal Effort–Hitting Some Rough Waters? - Investment News; CRFB; MarketWatch
As the countdown continues toward the end of the 118th Congress and the potential vote on S.597 (Social Security Fairness Act), it appears some opposing views are surfacing. The most recent to hit the internet is an analysis by a non-partisan fiscal advocacy group, the Concord Coalition, asserting that the bill would give a minority of workers an advantage from a repeal of the GPO and WEP. In a post summarizing the Coalition’s position on the legislation, Investment News reporter Leo Almazora recaps the point that “…scrapping the GPO and WEP under the Social Security Fairness Act would lead to ‘an unearned windfall’ for workers who would end up getting more and paying less than others.” Almazora’s post, which you can access here, also explains the Coalition’s viewpoint that non-covered workers who never earn a pension from their non-covered work are the real victims of unfairness, an issue that calls for a review of IRS regulations related to low-income workers in non-covered jobs.
The Concord Coalition is not the only group citing concerns over the WEP-GPO repeal bill. Last week, for example, the Committee for a Responsible Federal Budget (CRFB) expressed concerns regarding the bill’s financial impact. CRFB recommended consideration of formula changes rather than a full elimination of the provisions, and two weeks ago, Market Watch contributor Brenton Smith labeled the bill “incredibly irresponsible.” Also two weeks ago, American Enterprise Institute Senior Fellow Andrew Biggs called the bill a “$200 billion giveaway to people who neither paid for these benefits nor need them.”
So, why is there all this contradiction in viewpoints on WEP and GPO? Our research here at the AMAC Foundation has made it clear that there is a general misunderstanding about the logic behind these two provisions. As part of our mission to provide relevant, impartial education to seniors on matters affecting their well-being, we contributed information intended to ensure clarity for those wishing to take a position on this issue. The rules are controversial, to be sure, and there are two sides to the argument. For this reason, our Social Security Advisory Service has heavily researched the origin of these two troublesome provisions and has offered a publication (WEP and GPO: To Repeal or Not?) to help clarify the matter. We also conducted a public webinar presenting thoughts on the subject. A recording of the webinar can be viewed on the Foundation website here. As the webinar title suggests, the intent is to provide the background needed to take an informed stance.