WEP/GPO
What is GPO and WEP?
The Government Pension Offset (GPO) eliminates or reduces the spousal benefit by two-thirds the value of a teacher's retirement benefit. Windfall Elimination Provision (WEP) reduces, but does not eliminate, a portion of an individual's Social Security earned from other work outside of his/her public employment. The greatest penalty is fifty percent-- you will only receive half of what you should have received.
Who is Affected?
GPO and WEP affect public employees in states that do not participate in the Social Security system. The GPO and WEP affect public employees in virtually every state; however, those states with the greatest impact are Alaska, California, Colorado, Connecticut, Illinois, Louisiana, Kentucky, Maine, Massachusetts, Missouri, Nevada, New Mexico, Ohio, Rhode Island, and Texas.
The Call for Repeal
The National Coalition for GPO/WEP Repeal is calling for an immediate and complete repeal of both the GPO and WEP. These Social Security provisions discriminate against individuals who have chosen to serve their communities or country in public jobs by reducing retired public employee's Social Security or survivor benefits. Non-public employees with private pensions get to keep their entire pension and receive their full Social Security or survivor benefits.
What is being proposed and what you can do?
Several bills have been proposed to address this issue; however, there are two that deserve our support. U.S. Representatives Garret Graves(R-LA) introduced H.82 that calls for complete repeal of both the GPO and WEP. Sen Sharrod Brown (D-OH) introduced S597 as a companion bill in the Senate. Contact your U.S. Senator and Representative and ask them to co-sponsor these initiatives.
What you need to know.
Government Pension Offset
The Government Pension Offset (GPO) eliminates or reduces the spousal benefit by two-thirds the value of a teacher's retirement benefit. This reduction occurs whether the Social Security receiving spouse is alive, deceased, or divorced. Remember, the GPO only impacts those individuals who were not eligible to retire prior to December 1, 1982 (at least age 55 and tens years of creditable service or twenty years of creditable service and any age). or those who were eligible to retire by July 1, 1983. If you fall in the 1993 category contact Marie Ardito to see if you qualify at mardito@retireesunited.org The following examples help clarify how the GPO may affect an individual in these different circumstances.
Michael collects a Social Security benefit of $800 per month. His wife, Jan, who is a retired public school teacher worked for a school district that did not pay Social Security on its employees. Jan receives a monthly teacher annuity of $1,200. For the purpose of this example, both Michael and Jan are age 65 or older.
Effect of GPO with Living Spouse
Jan's potential Social Security: Benefit: $800 X 1/2 = $400
Amount Calculated for GPO reduction: $1,200 X 2/3 = $800
Total monthly Social Security benefit: $400 - $800 = No benefit
Effect of GPO upon Death or Divorce Jan's potential Social Security Benefit: $800
Amount Calculated for GPO reduction: $1,200 X 2/3 = $800
Total Social Security Benefit: $800 - $800 = No benefit
These examples illustrate a complete offset, whereas in other situations there may not be a complete offset. It is important to remember that in cases where a complete offset has not occurred, any increase in the teacher's benefit will result in a recalculation of the Social Security benefit. In other words, as the teacher's annuity goes up, the Social Security benefit goes down. When the Social Security spouse dies the surviving spouse is eligible for all of his/hers Social Security. However, even here, the offset number is used and therefore you will loose most or even all of their Social Security
The Windfall Elimination Provision
The Windfall Elimination Provision (WEP) uses a modified formula that may reduce your earned Social Security benefit. The modified formula applies to you when you attain age 62 or if you become disabled after 1985 and first become eligible after 1985 for a monthly pension based in whole or in part on work where you did not pay Social Security taxes.
The modified formula is used to figure your Social Security benefit beginning with the first month you get both a Social Security benefit and a teacher's retirement benefit. However, you can be exempt from WEP if you retired or were eligible to retire prior to January 1,1986 or have 30 years of substantial Social Security earnings.
The WEP reduction formula does not totally eliminate potential Social Security earnings. In addition, the WEP reduction is not based on how much you earned from other work not covered by Social Security (e.g., your teacher's retirement benefit). The formula used for calculating the first portion of the Social Security benefit will be reduced if you have less than 30 years of "substantial" earnings in Social Security.
What Constitutes Substantial Earnings?
The following is a chart provided by Social Security. You are considered to have a year of substantial earnings if your earnings equal or exceed the figures shown for each year in the chart below. For the years 1937-1950 the total earnings from these years are divided by $900 to get the number of years of coverage to a maximum of 14 years.
Year ------------------------Earnings
1937-50 ---------------------$900
1951-54 ----------------------900
1955-58---------------------1,050
1959-65---------------------1,200
1966-67---------------------1,650
1968-71---------------------1,950
1972-------------------------2,250
1973-------------------------2,700
1974-------------------------3,300
1975-------------------------3,525
1976-------------------------3,825
1977-------------------------4,125
1978-------------------------4,425
1979-------------------------4,725
1980-------------------------5,100
1981-------------------------5,550
1982-------------------------6,075
1983-------------------------6,675
1984-------------------------7,050
1985-------------------------7,425
1986-------------------------7,875
1987-------------------------8,175
1988-------------------------8,400
1989-------------------------8,925
1990-------------------------9,525
1991-------------------------9,900
1992------------------------10,350
1993------------------------10,725
1994------------------------11,250
1995------------------------11,325
1996------------------------11,625
1997------------------------12,150
1998------------------------12,675
1999------------------------13,425
2000------------------------14,175
2001------------------------14,925
2002------------------------15,750
2003------------------------16.125
2004------------------------16,275
2005------------------------16,725
2006------------------------17,475
2007------------------------18,150
2008 -----------------------18,975
2009-2011----------------- 19,800
2012----------------------- 20,475
2013----------------------- 21,075
2014----------------------- 21,750
2015-2016---------------- 22,o50
2017----------------------- 23,625
2018.............................. 23,850
2019.............................. 24,675
2020...............................25,575
2021...............................26,550
2022...............................27,300
2023...............................29,700
If you have 30 or more years of substantial savings the first factor of 90 percent is the same for you as it is for those not affected by the WEP. The following is a chart provided by Social Security of the percent of the first factor.
Years of Social Security Earnings--------------------First Factor
30 or more-----------------------------------------------90 percent
29---------------------------------------------------------85 percent
28---------------------------------------------------------80 percent
27---------------------------------------------------------75 percent
26---------------------------------------------------------70 percent
25---------------------------------------------------------65 percent
24---------------------------------------------------------60 percent
23---------------------------------------------------------55 percent
22---------------------------------------------------------50 percent
21---------------------------------------------------------45 percent
20 or less------------------------------------------------- 40 percent
Updated Status of Co-Sponsors of Bills
To check on who has signed on to co-sponsor the bills: simply type in the bill # ex. S597 co-sponsors and you will be provided with a list of those that cosponsor the bill, their party, State, and date they signed on to the bill. Also in the above "Legislation" drop is "tally" which will provide you with the Senators and Reps of each state who are cosponsoring the bill. Those who do not have a YES after their name have not signed on and they are the ones you should target with a phone call or email.
This page is usually updated every couple of weeks if there is movement on a bill.
Sample Letter
Dear Senator/Congressman:
I am a retired public educator from (insert where you taught) writing about two unjust Social Security provisions that affect hundreds of thousands of retired educators and other public employees across the country. These provisions are known as the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). I urge Congress to enact legislation repealing these two Social Security provisions.
The Government Pension Offset (GPO) eliminates or reduces the spousal benefit by two-thirds the value of a teacher's retirement benefit. The WEP reduces, but does not eliminate, a portion of an individual's Social Security earned from other work outside of his/her public employment.
I am affected by the (insert your personal story here about how the GPO, the WEP or both have affected you).
There are two that deserve our support. U.S. Representatives Rodney Davis(R-IL) introduced HR 1795 that calls for complete repeal of both the GPO and WEP. Sen Mark Begich(D-AL) introduced S896 as a companion bill in the Senate. Contact your U.S. Senator and Representative and ask them to co-sponsor these initiatives.
The repeal of the GPO and the WEP would greatly benefit thousands of public servants now being penalized for their live's work. Lawmakers have promised to help seniors with various programs or reforms. These are hard times for seniors living on fixed incomes. The costs of health insurance, prescription drugs and general cost of living expenses continue to increase. Thank you for taking the time to consider this issue. I look forward to hearing from you on how
you will help in this endeavor.
Sincerely,
Letter Writing Tips
1. Remember proper format including date and appropriate titles:
Today's date
The Honorable (name -U.S. Senator)
United States Senate
Washington, D.C. 20510
The Honorable (name -U.S. Rep.)
U.S. House of Representatives Washington, D.C. 20515
Dear Senator or Representative (Insert Last Name):
2. The first paragraph should be a short introduction of who you are and that you are requesting your Senator or
Congressman to sign on as a cosponsor of either S2010 or HR 1332.
3. The second paragraph should be a brief explanation of the issue on which you are writing.
4. The third paragraph (or section, if needed) is an explanation of how the GPO, WEP or both are impacting you. Include as much information as you feel comfortable sharing, such as how long you taught, how many years your spouse may have worked to earn his/her Social Security, how much money you are losing on a monthly/yearly basis, how many years you worked in education and in other employment to earn the Social Security, etc.
5. The concluding paragraph should thank them for their time and consideration on this issue. Ask to be sent a written response to your letter and to be kept on a mailing list regarding this issue. Remember to be factual and direct.
Limit your letter to one page.
Address the envelope to U.S. Senator as: The Honorable (insert name of U.S. Senator)
United States Senate
Washington, D.C. 20510
Address the envelope to U.S. Representatives as:
The Honorable (insert name of U.S. Representative)
U.S. House of Representatives, Washington D.C. 20515
Social Security
Age To Receive Full Social Security Benefits
(Called "full retirement age" or "normal retirement age.")
Note: If you qualify for benefits as a Survivor, your full retirement age may be different.
Year of Birth* Full Retirement Age
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943--1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67
If you were born on January 1st of any year you should refer to the previous year.
The earliest you can start receiving Social Security retirement benefits will remain age 62.