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Most Texas teachers and other school employees who are entitled to Social Security benefits through a current or former spouse are subject to a reduction in those benefits known as the Government Pension Offset (GPO). The GPO applies not only to Texas teachers, but to any government employee in any state who retires from a government position in which he/she did not pay into Social Security.

The GPO reduces the spousal Social Security benefit by 2/3 of the government pension. For example, if a teacher retired and had earned a $2,400 monthly TRS pension, the spousal Social Security benefit would be reduced by $1,600. In many cases, this completely eliminates the Social Security benefit for the retired school employee.

A separate exemption applies to employees who have earned Social Security benefits through their own participation in Social Security. The Windfall Elimination Provision, or WEP, reduces Social Security benefits for retired government employees receiving a pension for work in which they did not participate in Social Security. The reduction is calculated differently from the GPO reduction, and in no case will it fully eliminate the Social Security benefit. The primary way to avoid the WEP reduction is to have at least 30 years of participation in Social Security. The last-day exemption discussed in the following paragraphs DOES NOT APPLY to the WEP offset. The Social Security Administration has additional information about the WEP.

An exemption in law that allowed many school employees to receive full spousal benefits became popular several years ago. The exemption provided that the GPO would not apply to an employee who worked in a position paying into both the government pension (in this case, TRS) and Social Security on the last day of employment prior to retirement. This was interpreted in a way that allowed an employee to work for as little as one day in one of the few Texas school districts that pay into Social Security, or in one of the community colleges or other entities that pay into both TRS and Social Security.

Congress passed a law removing that last-day exemption effective June 30, 2004.

More information:

For several years, both before and after Congress passed the bill removing the last-day exemption, attempts have been made at removing the GPO and WEP benefit reductions, or revising them in a matter more favorable to school employees. A new Congress convened in January, 2007, and legislation was quickly filed to address these issues.

The House Ways and Means Subcommittee on Social Security will hold a hearing on the GPO and WEP (though not on a specific piece of legislation) on Wed., Jan. 16.

HR 82 would repeal both the Government Pension Offset and the Windfall Elimination Provision. It was filed by Rep. Howard Berman of California and referred to the Committee on Ways and Means, Subcommittee on Social Security. As of January 2007, the bill had 341 co-sponsors and had not been scheduled for a committee hearing.

Texas co-sponsors:

  • Rep. Michael Burgess
  • Rep. John Carter
  • Rep. Michael Conaway
  • Rep. Henry Cuellar
  • Rep. Lloyd Doggett
  • Rep. Chet Edwards
  • Rep. Louie Gohmert
  • Rep. Charles Gonzalez
  • Rep. Kay Granger
  • Rep. Al Green
  • Rep. Gene Green
  • Rep. Ralph Hall
  • Rep. Ruben Hinojosa
  • Rep. Sheila Jackson-Lee
  • Rep. Eddie Bernice Johnson
  • Rep. Nick Lampson
  • Rep. Kenny Marchant
  • Rep. Michael McCaul
  • Rep. Randy Neugebauer
  • Rep. Solomon Ortiz
  • Rep. Ron Paul
  • Rep. Ted Poe
  • Rep. Silvestre Reyes
  • Rep. Ciro Rodriguez
  • Rep. Pete Sessions

S 206 is the Senate companion to HR 82. It was filed by Sen. Dianne Feinstein of California and has 34 co-sponsors. It was referred to the Senate Committee on Finance and has not been scheduled for a committee hearing (though a subcommittee hearing on the issues was held on Tues., Nov. 6, 2007).

Texas co-sponsors:

(none)

HR 2772 by Rep. Kevin Brady of Texas was filed in June of 2007 and has 21 co-sponsors. It establishes a new formula for the Windfall Elimination Provision (the bill does not address the Government Pension Offset) based on each worker's actual work history and contributions, rather than the current uniform calculation. The bill has been referred to the House Ways and Means Subcommittee on Social Security, but has not been scheduled for a hearing.

Texas co-sponsors:

  • Rep. Michael Burgess
  • Rep. John Carter
  • Rep. Michael Conaway
  • Rep. John Culberson
  • Rep. Chet Edwards
  • Rep. Louis Gohmert
  • Rep. Kay Granger
  • Rep. Ralph Hall
  • Rep. Ruben Hinojosa
  • Rep. Sam Johnson
  • Rep. Kenny Marchant
  • Rep. Michael McCaul
  • Rep. Randy Neugebauer
  • Rep. Ron Paul
  • Rep. Ted Poe
  • Rep. Lamar Smith

S 1647 is the Senate companion to HR 2772, filed by Sen. Kay Bailey Hutchison of Texas. It was referred to the Senate Committee on Finance, and has not been scheduled for a hearing.

Texas co-sponsors:

(none)

HR 1090 is a more comprehensive Social Security reform bill filed by Rep. Ron Lewis of Kentucky. It was referred to the Committee on Ways and Means, and has not been scheduled for a committee hearing. The bill includes a provision that would reduce the impact of the Government Pension Offset by changing the 2/3 reduction to 1/3. It has 2 co-sponsors.

Texas co-sponsors:

(none)

HR 2988 was filed in July 2007 by Rep. Albert Russell Wynn of Maryland. The bill lessens the Government Pension Offset reduction by providing that the reduction is equal to the amount by which 2/3 of the government pension (TRS) and unreduced Social Security benefit exceeds $1,200 (adjusted for inflation). It has been referred to the House Committee on Ways and Means; no hearing has been scheduled yet.

Texas co-sponsors:

(none)

S 1254 is the Senate companion to HR 2988, and was filed in May 2007 by Sen. Barbara Mikulski of Maryland. Referred to the Senate Committee on Finance, it has eight co-sponsors and has not yet been scheduled for a hearing.

Texas co-sponsors:

(none)

HR 726 by Rep. Barney Frank of Massachusetts would exempt individuals from the Windfall Elimination Provision if their combined Social Security and government pension (TRS) benefits exceed $2,500. The reductions on amounts above $2,500 would be graduated. The bill, referred to the Social Security Subcommittee of the House Ways and Means Committee, has not been scheduled for a hearing.

Texas co-sponsors:

Sheila Jackson-Lee

TCTA will continue to keep our members informed of any additional developments.

Updated: 01/11/08