Retirement insights from a Colorado PERA perspective

Legislation & Governance

House Committee Argues the WEP Is Unfair

WEP

Earlier in August, we reported on the postponement of consideration of federal legislation that would have replaced the current formula used in the Windfall Elimination Provision (WEP).

The House Ways and Means Committee, chaired by Congressman Kevin Brady (R-TX), recently published a blog post, “The WEP is Unfair – and Here’s Why” arguing that because of a “flawed policy” known as the Windfall Elimination Provision, public employees who have paid into Social Security for part – but not all – of their careers are treated unfairly. The teachers, firefighters, police officers and others who work for public employers sacrifice fairness just because of the nature of their service careers.

Three specific reasons are cited by the Committee that demonstrate the unfairness built into the flawed formula:

  1. The benefits for workers who choose to serve their communities are calculated differently than other workers.
  2. For some, the WEP is not based on their entire earnings history.
  3. For those who choose to serve their communities, the WEP makes it harder to plan for their retirement.

The Bipartisan Policy Center, in a letter to the committee, called for replacing the WEP with a provision that would “proportionally scale Social Security benefits based on the ratio of covered earnings to total earnings,” creating a more equitable distribution of Social Security benefits.

Additional information on how Social Security benefits are calculated and how the WEP applies is available here.

Ways and Means Chairman Kevin Brady (R-TX) and Rep. Richard Neal (D-MA), who together first introduced H.R. 711, want to hear how the WEP has impacted public employees as they work on a solution to treat all workers fairly. To share your story, contact them at WEP.feedback@mail.house.gov.

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.

Comments

  1. Thanks to COPERA for keeping us up-to-date on this issue. It has had a substantially negative affect on numerous Colorado retirees and is extremely unfair.

  2. Wayne Flick says:

    I really do agree with Kevin, it really is very unfair!!

  3. Mary Cornell says:

    WEP removes $300+ from my monthly Social Security benefit. I’ve emailed Congressmen Brady and Neal at the email address in the article. They need to hear from all of us! By the way, the Bipartisan Policy Committee’s recommendation is an obfuscation, in my opinion. WEP already works that way, to our detriment. If the House Ways and Means Committee is truly serious about treating all workers fairly, they’ll draft legislation that abolishes the WEP.

    • Wayne Flick says:

      I suffer from WEP and GPA as well. Please element these unfair components of our retirement.

    • Wayne Flick says:

      Both my wife and I suffer from WEP & GPO as well and would be ever so grateful if you could eliminate these unfair components of our retirement.

  4. Kathleen Turner-Suarez says:

    I suffer from both WEP and GPA. As a result I cannot make ends meet. I was never told that this could happen. If I had known I would have chosen another career path to avoid thiis unfair treatment. Please eliminate these unfair rules.

  5. Larry King says:

    WEP is VERY UNFAIR! Had I known early on I would have done things differently with my career in pubic education in Colorado. My wife receives only SS. At times we have to assist kids and grand kids, consequently the dollars aren’t there at the end of the month. Not a great reward for teaching kids in Colorado!

    • Wayne Flick says:

      My feelings exactly. Both my wife and I are retired teachers and it’s such a shame that we get punished for “being substitute teachers”!

  6. Steve says:

    I agree with all of the comments above. I hope you completed the response email provided by PERA. I also cc’ed my congressman, Rep. Polis. May I suggest you do contact your respective local congressman, too? Thanks.

    • Wayne Flick says:

      As I’ve said before, I agree that WEP and GPO are unfair and I’d like nothing more than to have them over turned. I now live in Grand Junction and do not know who my state rep is but would like to thank Rep Polis as he was my Rep where I lived before and hope he is still my rep.

  • Share

  • Print