For Immediate Release
Friday, January 10, 2003
AFSCME Criticizes Unfair Social Security Offsets for Public-Sector Retirees
Washington, DC —The American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, with over 1.5 million working and retired members, today criticized the unfair pension offset that reduces Social Security benefits for thousands of retired public employees.
The Windfall Elimination Provision (WEP) affects those who work in public jurisdictions not covered under Social Security (approximately 25% of state and local government employees), but who've also had significant careers in Social-Security- covered jobs. Under the federal WEP law, they must forego a large percentage of their earned Social Security benefits if they are also getting a pension from their public employer.
"These are average folks who paid thousands of dollars into Social Security over 15, 20 and even 30 years, yet cannot receive the full benefits they're entitled to simply because they're also receiving a public pension," said AFSCME President Gerald W. McEntee. "AFSCME has been trying to correct this inequity for years, with only tepid support from Congress.
Bills to reform or repeal the WEP have been circulating in Congress for several years. The same is true for another Social Security offset that affects public pensioners: the Government Pension Offset (GPO). The GPO applies to pensioners in the same uncovered public jurisdictions. In this case, the offset reduces Social Security spouse or widow's benefits by an amount equal to two-thirds of a retiree's public pension.
"In the last Congress, AFSCME and our GPO-reform allies lobbied hard for a bill that modified the GPO by offering Social Security-benefit protection targeted at low-pension public-employee women," McEntee said. The bill, introduced by Sen. Barbara Mikulski (D-MD) and Rep. William Jefferson (D-LA), had broad bi-partisan support with nearly 300 co-sponsors in the House and over 30 in the Senate. "Nevertheless, it was never given the chance for a floor vote. There is an urgent need to change the Government Pension Offset, as well as the Windfall Elimination Provision. Both laws unfairly penalize public pensioners and should be reformed," McEntee added.
