In late April, new legislation was introduced in the U.S. Senate that proposes to change how the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) are applied to those who, like many PERA members, spend a majority of their work life in employment outside of the Social Security system. The Social Security Fairness Act of 2017, introduced by Sen. Sherrod Brown (D-OH), would repeal both the WEP and the GPO. The bill, S.915, has been assigned to the Senate Finance Committee. An identical bill, H.R.1205, has been introduced in the U.S. House of Representatives, and Colorado Reps. Ed Perlmutter (D-CO-07) and Jared Polis (D-CO-02) are cosponsors of the legislation.
Most PERA members contribute to PERA instead of Social Security. But if a PERA member also qualifies for a Social Security benefit, that benefit will most likely be reduced by either the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). For members who have contributed to both PERA and Social Security, the Social Security benefit will be subject to the WEP. Members who are eligible for a Social Security spousal benefit – a benefit for those married to someone who has earned their own Social Security benefit – the Social Security spousal benefit will be reduced by the GPO.
Below is a list of frequently asked questions from PERA members about the WEP, GPO, Social Security, and PERA:
Question: Will my PERA benefit be reduced because I’m getting a Social Security benefit?
Answer: No. PERA does not reduce the PERA benefit for members who have also earned a Social Security benefit. However, the Social Security benefit may be subject to either the WEP or GPO.
Question: Will I get the projected retirement benefit amount that is currently listed on my Social Security earnings statement?
Answer: Probably not. Chances are very good that the actual Social Security benefit amount will be less than the amount listed on the Social Security earnings statement.
Question: By how much will my Social Security benefit be reduced because I’ve worked for an employer who contributes to PERA instead of Social Security?
Answer: It’s hard to say because every work situation is unique. In terms of earning a Social Security benefit, the reduction could be determined by a number of factors including the number of years worked under Social Security, called substantial earnings. For PERA members who also have 30 years of substantial earnings under Social Security, the reduction may be lower. However, PERA members with fewer than 20 years of substantial earnings under Social Security are subject to the maximum reduction under the WEP. There is a maximum dollar amount that can be subtracted from the Social Security benefit amount. This maximum dollar amount changes each year and is established when a beneficiary reaches age 62. For people turning 62 this year, that amount is $442.50. For people turning 62 in the future, that amount will most likely increase. Use the WEP calculator to determine how this provision in federal law might impact you.
The GPO works differently. Typically, Social Security benefits are reduced by two-thirds of the PERA (or other government pension) benefit, but there are some exceptions. A GPO calculator at Social Security’s website can help estimate a Social Security Spousal Benefit.
Question: If the PERA member dies and their spouse becomes the benefit recipient, would they be subject to a reduction in Social Security?
Answer: No. If the PERA member selected Option 2 or 3 at retirement and passes away, the cobeneficiary, whether a spouse or someone else, begins to receive a PERA benefit. The cobeneficiary’s Social Security benefit is not reduced because they are receiving this type of benefit from PERA.
Question: How do I know if I’ve even earned a Social Security benefit?
Answer: In order to receive a Social Security benefit, a worker will need to have earned 40 credits (formerly called quarters) under Social Security. Forty credits equals 10 years of work. Those who have fewer than 40 credits are not eligible to receive a Social Security benefit. Create an online Social Security account to learn more about the federal program.
Question: Why are the minimum ages for qualifying for a PERA retirement and receipt of Social Security different?
Answer: For PERA members who recently began working for a PERA-affiliated employer, the minimum age to be eligible for service retirement benefits is 60 (58 for those who work for a School Division employer). The minimum age to begin receiving unreduced Social Security benefits for those born in 1960 or later is now 67. Minimum retirement ages in both programs have increased over time, reflecting the longer life expectancies of workers in the United States.
Read the Center for Retirement Research Issue Brief: Social Security’s Financial Outlook: The 2017 Update in Perspective
Windfall elimination provisionA provision of federal law that may reduce Social Security benefit payments to retirees who receive a pension based on work during which they did not contribute to Social Security. The WEP does not apply to those with 30 or more years of substantial earnings in Social Security.Government pension offsetA provision of federal law that reduces Social Security dependent benefit payments to spouses, widows, and widowers who receive a government pension like PERA.
Interesting how Republicans always say they’re for the middle class and for lower taxes; yet no CO Republicans seemed to have signed on in support of repealing this incredibly unfair tax that is aimed only at middle class, hard-working public servants.
Since I retired in 2010 and then became eligible for “MY” social security benefits and learned that I was qualified to apply for “MY” social security benefits; but along with my PERA retirement (that I worked and earned also!) I also was taken aback when the Social Security Administration “told” me that “they” were reducing “MY” benefits because I had a pension. I am still wondering when the Fed’s are going to pay back all of the IOU’s they owe the American workers who have been subjected to their “political GREED!”. Now I know where “they” get some the monies that “they” give to all the “freeloaders” that somehow end up on the the Government dole.
What bother me also, is for instance: my friend was in the military….he gets a pension. Then he worked in Civil Service for the Feds….he gets a pension here too. Then he retired with the state, and he gets a pension. 3 full pensions, plus a terrific medical plan: Tri-Care.
If we worked for the state and private industry paying into Social Security….we get hardly any Social Security. And, not great choices in medical insurance.
I still do not understand how I am NOT able to receive my deceased husband’s social security !!! It’s bad enough I don’t get mine that I PAID into for many yesrs — as well as teaching for over 26 years & paying into PERA . WHO GETS his social security??? We both worked since we were 16 years old . I worked in high school, full time in college, worked 2 jobs while teaching and in the summers!!! Who gets my social security !!! What a farce — because I taught public school I get denied my own & my husband’s social security !!!
I get nothing from social security. He worked for many years and was a social security because of my pera benefit⛅️. I only lacked one quarter earning my own social security. He died 12/28/15. Is that fair or not? Clara Huffman
Thank you, and credit given (when due), to PERA staff for posting information about how Colorado civil servants (retired and soon to be) are harmed by the unfair penalties against PERA members who also paid FICA taxes, but with out any of the (or greatly reduced) benefits.
The bottom line is all PERA members, their friends, and family members should immediately write their elected federal representatives demanding TOTAL repeal of the GPO & WEP provisions that discriminate against public employees! Since older Americans often prefer to write a letter, or talk over the phone rather than email, I close with some information I have found useful.
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Colorado Elected Federal Delegation Postal Addresses & Phone Numbers (BTW – Even if the politicians ignore you or provide some non-committal response, it’s not the content of your communication, IT’STHE QUANTITY OF COMMENTS THEY RECIEVE! And they’ll respond if you keep contacting them relentlessly):
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Sen. Bennett, Washington, D.C. Office, 261 Russell Senate Office Building, Washington, DC 20510, Phone: 202-224-5852, Fax: 202-228-5097 ;
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Sen. Gardner, 1125 17th St., Ste. 525, Denver, CO 80202, Ph: (303) 391-5777, Fax: (202) 228-7171;
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Congresswoman DeGette, 600 Grant Street, Suite 202, Denver, CO 80203-3525, Phone: (303) 844-4988, Fax: (303) 844-4996;
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Congressman Polis, Boulder Office, 1644 Walnut St., Boulder, CO 80302, Phone: (303) 484-9596, Fax: (303) 568-9007;
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Congressman Tipton, 503 N. Main Street, Suite 658, Pueblo, CO 81003, P: (719) 542-1073, F: (719) 542-1127;
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Congressman Buck, 1023 39th Ave., Unit B, Greeley, CO 80634, Phone: (970) 702-2136;
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Congressman Lamborn, 1125 Kelly Johnson Blvd., Suite 330, Colorado Springs, CO 80920, Ph: (719) 520-0055, Fax: (719) 520-0840;
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Congressman Coffman, 3300 S. Parker Road, Cherry Creek Place IV Suite #305, Aurora, CO 80014, Ph: (720) 748.7514, Fax: (720) 748.7680;
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Congressman Perlmutter, 12600 West Colfax Avenue, Suite B-400, Lakewood, CO 80215, Ph: (303) 274-7944, Fax: (303) 274-6455
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Also phone your congress members in D.C., by calling the U.S. capitol switchboard at (202) 224-3121 and ask to be transferred to the office of your Senators and/or Representative.
I am 62 years old right now and my wife is 72 years old and on Social Security, currently she only receives $800 a month. Myself, I will work till I am 66 years and 4 months so hopefully I can get full benefits from Social Security and my State Pension with 19 1/2 years in. I am disturbed by the fact that I have worked almost 53 years of my life to receive these benefits and fellow Legislative want to take away more or I am having to pay more and for what? I am not going to get better benefits but the fact that the State of Colorado new about Pera being under funded for years and now they say we are in dire straits. Why did they wait so long. Maybe my family and I should move into the Governor’s Mansion where most everything is paid for. I believe in the American Dream where you work hard all your life for a good retirement and live comfortably.
The article starts out with information about legislation that was introduced in both the House and the Senate in April of 2017, not 2018. Has legislation been introduced this year and by whom?
I am a victim of the WEP. I have and continue to be a self-employed private teacher. For 50 years, I have paid both the employer and employee contributions to Social Security. I taught in the Colorado Public Schools for 25 years and receive my PERA retirement benefit. My Social Security benefit has been seriously reduced because of my PERA retirement benefit. When I have inquired about the reasoning behind this, I’ve been told that I can’t “double dip.” However, military retirees go on to other careers in which they pay into Social Security. They receive their military pension and their full Social Security benefits.
I have contacted my senators and representatives in the past, but the legislation that is introduced has never become law, regardless of whether the Democrats or the Republicans have the majority in either house. It is not a partisan issue; it is a fairness issue. I feel betrayed because I chose to become a teacher.
Dear Ms. Rino,
Each session of Congress lasts two years so legislation introduced in 2017 could be considered in 2018.
I agree why should anyone be penalized from s.s. because you were in pera employment . you worked hard and earned your s.s.also .this is nothing but another criminal act of robbery from our goverment to all of us goverment servants!!! Not to speek of the pain and suffering of your spouse passing on!
WHY SHOULD A PERSON WHO HAD A NON PERA JOB, MADE CONTRIBUTIONS TO S.S. FOR FIFTEEN YEARS WHO THEN SHIFTED HIS/HER CAREER TO A JOB MAKING CONTRIBUTIONS TO PERA BE SUBJECT TO THE WEP ADJUSTMENT? THAT PERSON’S CAREER SPANNED TWO SEPARATE PERIODS THAT WERE SUBSEQUENT NOT SIMULTANEOUS. THOSE TWO CALCULATIONS SHOULD BE MADE SEPARATELY AND PAID IN FULL.
I started teaching at the age of 30 and prior to that worked since I was 18 and paid into social security. I am just discouraged that the ~$875 that Zi gained through SS will almost all be taken away from me.
Not only that, I was told by SS rep that if my husband were to die before I do, I would either have to take my pension or his – not both. However, if I pass before he does, then he will not only get to keep his SS pension but mine as well!! This is SO discouraging as I look at our bleak future of very little in retirement.