Social Security Issues in the 110 th Congress

Social Security Social Security Issues in the 110Issues in the 110thth

CongressCongress

NCPERS NCPERS 20072007

CONTEXTCONTEXT

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       Party Party 2006 2006 2004 2004 ChangChange e

RepublicaRepublicans ns 4949 5555 -6-6

  DemocratDemocrats s 5050 4444 66

  Other Other 11 11 00

United States SenateUnited States Senate

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House of House of RepresentativesRepresentatives

       Party Party 2006 2006 2004 2004 Change Change

RepublicanRepublicans s 202202 232232 -30-30

Democrats Democrats 233233 202202 3131

Other Other 00 11 -1-1

55

New New Congressional LeadershipCongressional Leadership

Senate Senate Majority LeaderMajority LeaderHarry Reid (D-NV)Harry Reid (D-NV)

Senate Senate Minority LeaderMinority LeaderMitch McConnell (R-KY)Mitch McConnell (R-KY)

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Speaker of the HouseSpeaker of the House

Nancy Pelosi (D-CA)Nancy Pelosi (D-CA)

House Majority House Majority Leader Steny Hoyer Leader Steny Hoyer (D-MD)(D-MD)

House Minority House Minority LeaderLeaderJohn Boehner (R-OH)John Boehner (R-OH)

77

Previous Chair: Charles Previous Chair: Charles Grassley (R-IA)Grassley (R-IA)

New Chair: Max Baucus (D-New Chair: Max Baucus (D-MT)MT)

SENATE FINANCE SENATE FINANCE COMMITTEECOMMITTEE

88

Previous Chair: Bill Thomas (R-Previous Chair: Bill Thomas (R-CA)CA)

New Chair: Charlie Rangel (D-New Chair: Charlie Rangel (D-NY)NY)

HOUSE WAYS AND MEANS HOUSE WAYS AND MEANS COMMITTEECOMMITTEE

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SOCIAL SECURITY SOCIAL SECURITY OFFSETSOFFSETS

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What is the What is the Government Government

Pension Offset?Pension Offset?

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Reduces some public Reduces some public employees’ Social Security employees’ Social Security spousal or survivor spousal or survivor benefits by benefits by two-thirdstwo-thirds of of their public pensiontheir public pension..

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WHOM DOES IT WHOM DOES IT AFFECT?AFFECT?

Any public employee who does Any public employee who does not pay into Social Security but not pay into Social Security but whose spouse does/did. whose spouse does/did.

public employee expects survivor public employee expects survivor benefits based on deceased spouse’s benefits based on deceased spouse’s earnings.earnings.

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What is the What is the Windfall Windfall

Elimination Elimination Provision?Provision?

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Changes Social Security Changes Social Security formula to reduce EARNED formula to reduce EARNED benefits of persons with a benefits of persons with a public pension.public pension.

Some employees lose up to Some employees lose up to $340 per month (maximum $340 per month (maximum reduction for 2007) in Social reduction for 2007) in Social Security. Security.

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WHOM DOES IT WHOM DOES IT AFFECT?AFFECT? Public employees receiving Public employees receiving

pension from job not covered by pension from job not covered by Social Security.Social Security.

Affects benefits from: Affects benefits from: Earnings in prior career;Earnings in prior career; Earnings in a non-offset state;Earnings in a non-offset state; Earnings from part-time or Earnings from part-time or

summer jobs.summer jobs.

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NEA worked to get re-introduced in NEA worked to get re-introduced in House (H.R. 82) and Senate (S. 206) House (H.R. 82) and Senate (S. 206) in first few days of the 110in first few days of the 110thth Congress. Congress.

In last Congress, record numbers of In last Congress, record numbers of Members of Congress cosponsored.Members of Congress cosponsored.

Need to rebuild cosponsor lists in Need to rebuild cosponsor lists in the 110th Congress!the 110th Congress!

The Solution:The Solution:Social Security Fairness Social Security Fairness

ActAct

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What Would the Bill Do?What Would the Bill Do?

Completely repeal GPO and Completely repeal GPO and WEP.WEP.

Anyone currently impacted Anyone currently impacted would be helped prospectively. would be helped prospectively.

Not retroactive to cover Not retroactive to cover benefits already lost.benefits already lost.

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Why is it Taking So Why is it Taking So Long???Long???

Legislation takes on average 7-8 Legislation takes on average 7-8 years to move through Congress.years to move through Congress.

Opposition from previous Opposition from previous congressional leaders:congressional leaders:

Cost (ten year cost of full repeal Cost (ten year cost of full repeal is over $60 billion)is over $60 billion)

Philosophical disagreement Philosophical disagreement (“double dipping”)(“double dipping”)

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New Opportunities?New Opportunities? New congressional leadership offers New congressional leadership offers

new opportunities.new opportunities.

New committee chairs with jurisdiction:New committee chairs with jurisdiction:

House Ways and Means – Charlie Rangel (D-House Ways and Means – Charlie Rangel (D-NY), cosponsored repeal bill last year.NY), cosponsored repeal bill last year.

Senate Finance – Max Baucus (D-MT) – not a Senate Finance – Max Baucus (D-MT) – not a cosponsor in the past.cosponsor in the past.

2020

Will still have obstacles:Will still have obstacles:

Cost continues to be an issueCost continues to be an issue

Congress may continue to Congress may continue to push issue off until they push issue off until they address larger Social Security address larger Social Security reformreform

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Campaign to Campaign to Repeal the Repeal the

OffsetsOffsets

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COALITION TO ASSURE COALITION TO ASSURE RETIREMENT EQUITY (CARE)RETIREMENT EQUITY (CARE)

NEA is a member, along with NEA is a member, along with other unions, firefighters, police, other unions, firefighters, police, etc.etc.

Working together to target Working together to target Members of Congress, activate Members of Congress, activate grassroots, and conduct other grassroots, and conduct other activities in support of repeal.activities in support of repeal.

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What Can You Do?What Can You Do? Contact all Members of Contact all Members of

Congress: Congress:

Explain impact of offsets on Explain impact of offsets on you, your colleagues, your you, your colleagues, your profession. profession.

Thank cosponsors of House and Thank cosponsors of House and Senate bills; urge all other Senate bills; urge all other Members to cosponsor the Members to cosponsor the Social Security Fairness Act Social Security Fairness Act (H.R. 82/S.206). (H.R. 82/S.206).

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Ask Governor to write Congress and Ask Governor to write Congress and state legislature to pass a resolution state legislature to pass a resolution calling on Congress to repeal the GPO calling on Congress to repeal the GPO and WEP. and WEP.

Organize a call-in day. Organize a call-in day.

Deliver postcards to Members of Deliver postcards to Members of Congress in their local offices.Congress in their local offices.

Go to NEA website or website of your Go to NEA website or website of your organization and send an e-mail organization and send an e-mail message to Congress; ask friends, message to Congress; ask friends, family, and co-workers to do the family, and co-workers to do the same. same.

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Reach out to other impacted Reach out to other impacted groups in your area.groups in your area.

Organize a rally. Organize a rally.

Host a town hall meeting with a Host a town hall meeting with a wide cross section of public wide cross section of public employees. employees.

Submit a letter to the editor or an Submit a letter to the editor or an op-ed to your local newspaper. op-ed to your local newspaper.

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Talking PointsTalking Points

GPO and WEP take away benefits GPO and WEP take away benefits folks have EARNED by working for folks have EARNED by working for many years.many years.

This is a national problem --there This is a national problem --there are affected people in are affected people in all all states.states.

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Economic Impact:Economic Impact:

Loss of income forces some Loss of income forces some people into poverty and onto people into poverty and onto expensive government expensive government programs like food stamps.programs like food stamps.

Impacted people have less $ to Impacted people have less $ to spend -- hurts local economies.spend -- hurts local economies.

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IMPACT ON THE PUBLIC SECTOR:IMPACT ON THE PUBLIC SECTOR:

GPO and WEP discourage people from GPO and WEP discourage people from entering/staying in public sector entering/staying in public sector professions. professions.

If Congress wants to encourage people If Congress wants to encourage people moving from private sector into public moving from private sector into public service, they must address the offsets!service, they must address the offsets!

These issues are important to These issues are important to voters!!voters!!

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Remember:Remember:

The Battle is Not Over!!! We The Battle is Not Over!!! We Must Keep Fighting!!Must Keep Fighting!!

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PRIVATIZATIONPRIVATIZATION

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A Little HistoryA Little History At start of 109At start of 109thth Congress, Social Congress, Social

Security was on the front-burner.Security was on the front-burner.

President was pushing President was pushing privatization and the issue privatization and the issue appeared on the fast track.appeared on the fast track.

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Where Are We Now?Where Are We Now?

VICTORY!!! Strong opposition VICTORY!!! Strong opposition from a broad coalition of groups from a broad coalition of groups stopped privatization proposals stopped privatization proposals from moving. Social Security from moving. Social Security moved to the back-burner.moved to the back-burner.

3333

Outlook for 110Outlook for 110thth CongressCongress

Unclear if/when Social Security will Unclear if/when Social Security will be on agenda.be on agenda.

Democrats in charge oppose Democrats in charge oppose privatization. privatization.

Dems.’ priorities for “1Dems.’ priorities for “1stst 100 hours” 100 hours” included “fighting any attempt to included “fighting any attempt to privatize Social Security.privatize Social Security.””

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CONTINUE TO OPPOSE CONTINUE TO OPPOSE ANY PRIVATIZATION!!ANY PRIVATIZATION!!

Would jeopardize secure Would jeopardize secure retirement of many Americans. retirement of many Americans.

Cost could reach over $1 trillion Cost could reach over $1 trillion in ten years. in ten years.

Would subject financial security Would subject financial security to unpredictable ups and downs to unpredictable ups and downs of the market. of the market.

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Mandatory Mandatory CoverageCoverage

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The IssueThe Issue Some reform proponents suggest Some reform proponents suggest

requiring Social Security participation requiring Social Security participation for all public employees. for all public employees.

This is a bad idea:This is a bad idea: Would weaken state and local plans.Would weaken state and local plans.

Increase state and local financial burdens.Increase state and local financial burdens.

Won’t solve Social Security’s financial Won’t solve Social Security’s financial concerns.concerns.

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Mandatory Coverage: Mandatory Coverage: StatusStatus

Strong bipartisan coalition Strong bipartisan coalition in Congress opposed to in Congress opposed to mandatory coverage.mandatory coverage.

Issue off table until Social Issue off table until Social Security reform resurfaces.Security reform resurfaces.

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QUESTIONS

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