Wednesday, June 17, 2015

The Windfall Elimination Provision: An Action Alert from the Illinois Retired Teachers Association




The 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. 
 
Congressman Richard Neil (D-MA) and Congressman Kevin Brady (R-TX) are continuing their efforts to pass HR 711, a measure to reform the Social Security Windfall Elimination Provision.   

This measure is continuing to progress slowly through the process and has continued to draw bipartisan support since its introduction in February. The legislation has garnered the support of 27 co-sponsors and has been assigned to the House Ways and Means Committee.

HR 711 proposes to reform the Windfall Elimination Provision by replacing the existing WEP formula, which uses an arbitrary reduction percentage with a formula that takes into account the actual wage history for the public employee. The WEP was enacted in 1983 as part of a large reform package designed to shore up the financing of the Social Security system. 

We are asking retirees to contact their members of Congress and ask them to co-sponsor HR 711. To log in and send your message, please Click Here.

For more detailed information about WEP and GPO, Click Here.


2 comments:

  1. Would anyone care to give some kind of example explaining what is being proposed?

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    Replies
    1. HR 711 Official Summary:

      Equal Treatment of Public Servants Act of 2015 Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to replace the current windfall elimination provision (WEP) (that reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security) for individuals who:
      (1) become eligible for old-age insurance benefits after 2016 or would attain age 62 after 2016 and become eligible for disability insurance benefits after 2016,
      (2) subsequently become entitled to such benefits, and
      (3) have earnings derived from non-covered service performed after 1977. Establishes a new formula for the treatment of non-covered earnings in determining Social Security benefits. Prescribes a second formula to modify the WEP for current beneficiaries. Directs the Commissioner of Social Security to recover over payments from certain individuals.

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