Q: I teach high school, but I was an engineer for 10 years and paid into Social Security. I have California STRS (State Teachers’ Retirement System) contributions deducted from my paycheck. I have been told that I will get all of my STRS benefits but only a portion of the Social Security when I retire. What is going on?
A: The 10 years you worked as an engineer and paid into Social Security would entitle you to Social Security benefits, but because you are also entitled to a state retirement pension, your Social Security benefits will be reduced under Windfall Elimination Provision (WEP) rules. The WEP was part of the 1983 package of Social Security reforms that cut benefits. According to Robert M. Wilson, Social Security’s Deputy Commissioner for Legislation and Congressional Affairs, Congress established the WEP to prevent workers who spent a portion of their careers in employment not covered by Social Security from receiving “more favorable Social Security benefits than comparable workers who had worked a lifetime in a job covered by Social Security.” If you retire this year in 2005, the WEP would reduce your Social Security benefit by more than $313.
A similar reduction is the Government Pension Offset (GPO) that affects persons who are entitled to a state or local government pension based on their own work history and a Social Security spouse or survivors benefit based on the work history of a spouse or deceased spouse. The GPO can wipe out most, or even totally eliminate the Social Security spouse or survivor benefit if a person receives a state or local government pension.
TSCL supports measures that would repeal these two rules that cut the benefits of school teachers, fire fighters, police, and many other public servants. Legislation that would eliminate the WEP and GPO, “The Social Security Fairness Act of 2005”, H.R. 147, has been introduced in the House by Representative Buck McKeon (CA) and in the Senate, S.619, by Senator Diane Feinstein (CA). The bills have broad support and H.R. 147 has picked up more than 245 cosponsors. While this is enough support to pass in the House (which has 435 members), supporters will need to press to get the bills to come up for a vote.
Source: Testimony of Robert M. Wilson, Deputy Commissioner for Legislation and Congressional Affairs, before the House Subcommittee on Social Security, Committee on Ways and Means, The Social Security Administration, May 1, 2003.
June 2005
