Pair of Representatives Attempt to Revive Social Security Fairness Act

Will the WEP and GPO finally be eliminated? Legislation first introduced in 2021 is receiving push from Congress to see that the bill receives a vote.

In the world of government service – on the local, state, and federal levels – one of the biggest perks for employees is the pension they’re due to receive. Some of these retirement plans are considered “covered” and workers who contribute to these plans also put a portion of their paychecks into Social Security. “Non-covered” pensions, such as the Civil Service Retirement System (CSRS) for feds hired between 1920 and 1983, does not have a Social Security component. A law from 1977 took this fact into account and created two controversial regulations known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

The GPO only impacts social security benefits when the spouse or widow(er) of the employee, who contributed to a non-covered pension, are claimed. (CSRS-offset employees don’t have to worry about the GPO, read Ed’s article for more information.)For the retirees who are living and collecting their own retirement income, contributions to a non-covered pension can trigger the WEP, reducing any social security benefit they’re entitled to.

---

 

FERS, CSRS, Social Security, TSP, and More! We’ve got you covered with our no-obligation webinars for feds-

REGISTER HERE

---

 

Recent Push to Eliminate GPO & WEP

In January of 2021, HR-82, the Social Security Fairness Act, was introduced in the House of Representatives by Illinois Republican Rodney Davis. A similar bill, S-1302, was brought forth in the Senate by Democrat Sherrod Brown of Ohio just a few months later on April 22^nd. Neither of these proposed laws made it out of Congressional committees, but Representative Davis has secured enough sponsors that allow the bill to be considered for a vote without a committee’s thumbs-up. This leaves the ultimate decision about whether or not the House will vote on HR-82, up to the Speaker, Nancy Pelosi. In addition to Davis garnering the necessary amount of bipartisan sponsors for the bill, Representative Clay Higgins, a Republican from Louisiana, has attempted to personally persuade Pelosi to hold the vote over the last few weeks. It should be noted that Govtrack.us has both bills’ chances of passing at 2%.

—

Until Next Time,

The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers  and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **

Social Security Fairness Act