Retirement insights from a Colorado PERA perspective

News You Should Know

News You Should Know: Congressional Committee Holds Hearing on WEP/GPO

United States capitol in Washington DC with a Social Security card and money
Photo credit: zimmytws/Getty Images

What to Know About the Latest House WEP-GPO Hearing | National Conference on Public Employee Retirement Systems

Lawmakers have not acted on any of 2023’s legislation related to Social Security’s Windfall Elimination Provision (WEP) or Government Pension Offset (GPO), but the House Ways and Means Subcommittee on Social Security held an informational hearing on the topic in April. While the hearing didn’t result in any action, committee members discussed the viability of solutions and the fact that the Social Security Administration now has better worker data than it did when the WEP/GPO were put in place.

Social Security Expected to Run Short on Funds in 2035, Government Says | CNBC

Federal officials say a strong economy and low unemployment have helped improve the outlook for the trust funds that pay Social Security and Medicare benefits. According to the most recent estimates, Social Security is estimated to deplete its funds in 2035, one year later than last year’s estimates. Medicare, on the other hand, is expected to deplete its trust fund in 2036, five years later than the previous projection.

Growing Older in Colorado? You’ll be Interested in These New Laws | The Colorado Sun

The Colorado General Assembly considered hundreds of bills on a wide variety of topics in the 2024 legislative session. Some of those bills aim to improve the lives of the state’s older residents, providing additional funding for various services and programs that support aging Coloradans.

US Fed’s Powell Expects Inflation to Fall, Though Not as Confident as Before | Reuters

Federal Reserve Chair Jerome Powell said recently he still expects inflation to come down to more reasonable levels this year, though it’s not happening as quickly as expected. While experts had been expecting the Fed to start lowering rates sometime this year, Powell has said the central bank is not prepared to do so until it is confident inflation is closer to the target of 2 percent.


News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

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.Trust fundA fund in which money and/or other assets are held and managed by trustees on behalf of plan participants. PERA maintains trust funds for each of its Defined Benefit Plan divisions (State, Local Government, School, Denver Public Schools, and Judicial).Trust fundA fund in which money and/or other assets are held and managed by trustees on behalf of plan participants. PERA maintains trust funds for each of its Defined Benefit Plan divisions (State, Local Government, School, Denver Public Schools, and Judicial).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.

Comments

  1. John Huston says:

    We (retired PERA School teachers) started feeling the effects of inflation a few years ago & PERA HAS not kept us up & we’re hurting more…

    • Judy Varner says:

      Especially teachers who have their Social Security offset by WEP

    • Pixel Chi says:

      WEP/GPO hearings just an excuse for the inevitable bill that never leaves the conference. What can be said that hasn’t been said over the last 20 years? Don’t hold your breath just come back and we’ll study this some more next year.

  2. John Huston says:

    Teachers now have no respect or power for their future. Teacher Unions have been slaughtered by politicians on school boards. Who would want to teach today. Even retirement w PERA isn’t any better than just SS & we don’t get 1/3 of SOC SECURITY like many Government employees.

  3. B Sunnarborg says:

    I moved to Minnesota in order to receive help from my family for a knee replacement. My Social Security went from $1,124 in Colorado to $630 !
    What a shocker!
    This was due to WEP and my teaching PERA retirement is only $901.99 per month.
    I am “forced to work” in order to meet “Basic needs”
    Sad case for a faithful and dedicated “retired” teacher!

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