Home ::
Statement of the Texas Classroom Teachers Association to the Finance Committee Subcommittee on Social Security, Pensions and Family Policy - U.S. Senate
GPO And WEP: Policies Affecting Pensions
From Work Not Covered By Social Security
November 6, 2007
Thank you for this opportunity to provide comments on the federal laws that reduce or eliminate Social Security benefits for public employees who receive a government pension from non-covered employment.
The Texas Classroom Teachers Association (TCTA) was established 80 years ago and has grown to more than 50,000 members across the state. TCTA membership is limited to teachers and related non-administrative personnel who are directly involved with student instruction or support, and TCTA is not affiliated with a national organization.
Our members and other public servants across the country have been eagerly anticipating movement on the legislation that would address the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), and we appreciate this committee’s consideration of the issue. These employees are extremely concerned about the current offsets in the Social Security system that prevent most school employees in our state from receiving fairly earned benefits.
The GPO affects the majority of school employees in Texas, reducing, or in most cases eliminating, spousal Social Security benefits. Educators often consider the scenario of a spouse who has never worked in any capacity but who receives a full spousal benefit (without regard to income level or receipt of a private pension), and find that the reduction in their own spousal benefits falls far short by any standard of fairness.
TCTA supports the repeal of the Government Pension Offset. If the policy decision is made to retain the GPO, we strongly encourage you to reduce its impact by lowering the offset significantly. In too many cases, a school employee finds him/herself living solely on the school retirement benefit, which can be a meager amount particularly for the employee who entered the profession later in life and for lower-paid workers.
The Windfall Elimination Provision adds insult to injury. Though the Social Security system is designed to assist low-earning employees, the WEP penalizes lower-paid retirees such as educators and other public servants. It seems particularly unfair to reduce benefits to an employee who has paid into Social Security for years and then chooses to enter the teaching profession in Texas. Many teachers coming to Texas from another state or another profession do not realize the impact of the WEP until too late, and it becomes increasingly difficult to recruit individuals into teaching in Texas when they learn that the transition results in a reduction in their fairly earned Social Security benefit. Calls to our office have unfortunately borne out the other negative consequence: individuals often make the decision to become a Texas teacher only to discover the implications after the fact.
Inadequate compensation for many school employees has led to second jobs, most of which do require Social Security participation. However, those employees may not ever receive a full benefit from that required participation, because of their position as a public servant. These employees have paid into Social Security for 40 quarters or more, sometimes over an entire career, and have fully earned Social Security benefits. The WEP arbitrarily and unfairly reduces those benefits.
Sen. Kerry and others have described the GPO and WEP as “blunt instruments” that discourage educators and other public service professionals from remaining in government positions. Our members agree, and respectfully request that this committee take action swiftly to help millions of public servants across the country receive the Social Security benefits to which they are entitled.
Web posted: 11/19/07
