Thursday, March 17, 2016

Hearing on WEP Next Week

I guess having some kind of hearing on the "Windfall Elimination Provision" affecting millions of public sector workers including yours truly is a step in the right direction, but since a Republican is sponsoring this "recalculation" of SS benefits in order to be more fair to people affected by WEP, I don't trust it as far as I can throw it.

I think more people could be screwed than before. After all, the GOP has always been in the forefront to cut SS benefits, so I am not buying this legislation.

Nothing but outright repeal of WEP (and GPO) is acceptable.

Currently, the WEP reduces the Social Security benefits of 1.3 million people who also receive public pensions from work not covered by Social Security—for example, educators and other dedicated public servants who must take part-time or summer jobs to make ends meet. H.R.711 would replace the WEP with a new “public service fairness formula” for people who turn 62 during or after 2017. Under this formula, the Social Security Administration would take into account the years a public sector employee paid into Social Security versus the years that employee paid into a public pension system while working in a position not covered by Social Security. Under H.R. 711, Social Security benefits would be calculated as if all the worker’s earnings were subject to Social Security taxes. This amount would then be multiplied by the percent of earnings covered by Social Security, thus taking into account that Social Security benefits are based on Social Security wages.

Call me skeptical of anything coming out of Congress.

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