Retired Educators Across Nation Call On Congress To Repeal Social Security Penalties That Harm Education.

News Editors/Business Editors

WASHINGTON--(BUSINESS WIRE)--March 25, 2004

Amidst growing Congressional interest in the issue, a coalition of 16 retired educator associations from across the nation have called on the U.S. Congress and the President to repeal penalties in Social Security that can drastically reduce the income of retired teachers and deter people from pursuing second careers as educators.

The Retired Educators Coalition for Social Security Fairness, representing more than 290,000 members, cited the financial hardships many suffer due to the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

"Our members' expectations for action are high this year because of the unprecedented level of bipartisan support" for repeal, the letter noted. "We don't believe the hardships that have occurred are what the U.S. Congress intended when they originally passed these penalties more than 20 years ago."

The penalties affect benefits for retirees who receive a pension from a public plan that is not integrated with Social Security. The GPO reduces the amount of money a retiree would otherwise receive as a spousal benefit by two-thirds the amount of the teacher's pension -- usually eliminating any benefit. A retiree's own Social Security earnings are cut in half by the WEP. Many retirees who worked summers in Social Security-covered employment are affected by both penalties.

Loss of the spousal benefit is particularly devastating for women, who typically outlive their husbands. Even though they may themselves receive no spousal benefit when their husband is alive, the complete loss of Social Security income at the husband's death often pushes the widow into poverty.

Because of inadequate reporting mechanisms between the affected state pension systems and the Social Security Administration, many people only learn they are impacted by the penalties when they go to apply for their Social Security benefits.

In addition, many people who decide mid-career to become teachers do so without realizing that they are drastically reducing or eliminating their previously earned Social Security benefits.

HR 594, authored by Congressman Howard "Buck" McKeon (R-CA), would repeal both the GPO and the WEP. It has 290 co-sponsors. Senator Dianne Feinstein (D-CA) has introduced an identical bill in the Senate (S 349) which has 30 cosponsors. However, both bills have essentially been bottled up in committee since their introduction.

Recently, Congressional supporters of repeal mustered 196 votes in an unsuccessful attempt to attach language for repeal to another bill. Currently, a discharge petition is circulating in the House of Representatives to force the repeal bill (HR 594) directly to the floor for a vote. The petition has 133 signatures, with 218 needed.

The Coalition has not endorsed the discharge petition but expects Congressional action on the issue this session.

In addition to retired teachers in 15 states, federal employees are affected by the penalties as well as many police and firefighters throughout the nation.

THE RETIRED EDUCATORS

COALITION FOR SOCIAL SECURITY FAIRNESS

To President George W. Bush and Members of the 108th Congress:

On behalf of the more than 290,000 of our members who are retired educators in state pension systems directly affected by the Government Pension Offset and the Windfall Elimination Provision in Social Security, we urge you to take action during the current session of the U.S. Congress to repeal these onerous penalties. Our members have retired and live in every state of the union, and this is a national problem.

Many thousands of our members suffer undue financial hardships and virtual impoverishment in retirement because of the GPO and WEP. As lifelong, hard-working professionals in modestly paid public school and higher education positions, they frankly cannot understand the reasoning behind penalizing public service and singling out people who have dedicated their lives to the education of our children.

After years of effort to have the U.S. Congress repeal these penalties, our members' expectations for such action are high this year because of the unprecedented level of bipartisan support. Passage of HR 594 and S 349 is the Coalition's highest federal priority and we are watching progress on these bills very closely.

In addition to the hardships these penalties have caused current retirees, they also have an enormous impact on education. Many highly qualified people are deterred from pursuing a second career in education because these penalties exact too high a financial toll on their retirement. They may be willing and able to accept a pay cut to teach, but they are unable to dramatically reduce their Social Security benefits in retirement.

Long experience has shown these penalties inflict an inordinate toll on those affected. Repeal is affordable -- an estimated $4 billion per year, or less than one percent of the total Social Security benefits paid in 2001.

We don't believe the hardships suffered are what the U.S. Congress intended when they originally passed these penalties more than 20 years ago. Now you have the opportunity to at long last rectify that mistake. We expect the U.S. Congress to enact and the President to sign legislation to repeal the GPO and WEP this year. Our members cannot wait any longer for fair treatment by the Social Security system.

               Coalition Members & Contact Information:

Ken Baker
President
Alaska Retired Educators Association
907-279-6327

Eva Hain
President
California Retired Teachers Association
916-923-2200

William Gardner
Executive Director
Georgia Retired Educators Association
770-287-7721

Robert Wagoner, EdD.
Executive Director
Kentucky Retired Teachers Association
502-231-5802

Tom Curran
Executive Director
Maine Retired Teachers Association
207-650-4971

James Kreider
Executive Director
Missouri Retired Teachers Association
573-875-8802

Dave Travis
Executive Director
Ohio Retired Teachers Association
614-431-7002

Carlo A. Gamba
President
Rhode Island Retired Teachers Association

Earl Smith
President
Association of Retired Teachers of Connecticut

Artimese Cowan
Executive Director
Colorado Retired School Employees Association
303-326-1808

Jim Bachman
Executive Director
Illinois Retired Teachers Association
217-523-8488

Roland Dommert
Executive Director
Louisiana Retired Teachers Association
225-927-8837

Marie Ardito
Executive Director
Massachusetts Retired Teachers Association
781-272-8073

Dollie McPartlin
President
Nevada State Retired Teachers Association
702-876-2310

R.F. Bures
Executive Director
Retired Teachers Association of Chicago
312-939-3327

Mike Lehr
Executive Director-Emeritus
Texas Retired Teachers Association
512-476-1622