SJR 1: Social security: retirement benefits: public employees.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-07-06
This measure would request the President and the Congress of the United States to pass legislation repealing the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act.
This measure would request the President and the Congress of the United States to pass legislation repealing the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act.
This measure would request the President and the Congress of the United States to enact the Social Security Fairness Act of 2013, which would repeal pass legislation repealing the Government Pension Offset and the Windfall Elimination Provisions from the Social Security Act.
This measure would request the President and the Congress of the United States to enact the Social Security Fairness Act of 2013, which would repeal the Government Pension Offset and the Windfall Elimination Provisions from the Social Security Act.
WHEREAS, After 1965, Californias educators were not allowed to participate in the federal social security system; and
WHEREAS, Most peace officers and firefighters, and many other public employees, are not covered by social security; and
WHEREAS, Due to higher contribution rates, the California State Teachers Retirement System and the California Public Employees Retirement System provide retirees with superior benefits compared to those provided by the federal social security system; and
WHEREAS, The State Teachers Retirement System is not coordinated with the federal social security system; and
WHEREAS, The benefits of certain members of the Public Employees Retirement System and retirement systems established pursuant to the County Employees Retirement Law of 1937 are not coordinated with the federal social security system; and
WHEREAS, The public safety officers retirement plans are uniquely designed to address the special needs of their professions, including firefighters unique employment characteristics, such as the physical demands of the job, which ultimately result in higher injury rates and permanent disabilities; and
WHEREAS, The Social Security Act includes two offsets, the Government Pension Offset and the Windfall Elimination Provision, that reduce the social security benefits payable to persons who are entitled to benefits under other retirement systems, under certain conditions which directly controvert the designed intention of these California public retirement system plans; and
WHEREAS, These provisions penalize individuals who move from private sector employment into teaching, public safety, and other careers in public service; and
WHEREAS, These provisions penalize individuals who earned social security benefits through their own employment prior to or after public service by denying earned benefits; and
WHEREAS, California has a significant teacher shortage and requires more than 16,000 new teachers per year to meet enrollment growth and retirement replacement needs in targeted schools; and
WHEREAS, Every child should have the opportunity to have a highly qualified teacher in his or her classroom, but the Social Security Act offsets limit the number of fully credentialed teachers in the classroom by penalizing individuals who change from private to public employment; and
WHEREAS, The recruitment and retention of career firefighters, peace officers, and other public safety officers from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by the existing offsets, thereby making non-social security covered employment less attractive to those professionals and, as a result, limiting the number of experienced, knowledgeable people who might otherwise seek out public safety careers in California; and
WHEREAS, The recruitment and retention of teachers and other public employees from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by these offsets; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provision would greatly improve the opportunities for hiring and retaining teachers, peace officers, firefighters, and other public employees in California; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provision would provide economic stimulus across California by providing earned retirement benefits to public servants in every region of this great state during this time of economic distress; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature of the State of California requests the Congress of the United States to pass legislation repealing the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act, and further requests President Barack Obama to sign that legislation; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
WHEREAS, After 1965, Californias educators were not allowed to participate in the federal social security system; and
WHEREAS, Most peace officers and firefighters, and many other public employees, are not covered by social security; and
WHEREAS, Due to higher contribution rates, the California State Teachers Retirement System and the California Public Employees Retirement System provide retirees with superior benefits compared to those provided by the federal social security system; and
WHEREAS, The State Teachers Retirement System is not coordinated with the federal social security system; and
WHEREAS, The benefits of certain members of the Public Employees Retirement System and retirement systems established pursuant to the County Employees Retirement Law of 1937 are not coordinated with the federal social security system; and
WHEREAS, The public safety officers retirement plans are uniquely designed to address the special needs of their professions, including firefighters unique employment characteristics, such as the physical demands of the job, which ultimately result in higher injury rates and permanent disabilities; and
WHEREAS, The Social Security Act includes two offsets, the Government Pension Offset and the Windfall Elimination Provision, that reduce the social security benefits payable to persons who are entitled to benefits under other retirement systems, under certain conditions which directly controvert the designed intention of these California public retirement system plans; and
WHEREAS, These provisions penalize individuals who move from private sector employment into teaching, public safety, and other careers in public service; and
WHEREAS, These provisions penalize individuals who earned social security benefits through their own employment prior to or after public service by denying earned benefits; and
WHEREAS, California has a significant teacher shortage and requires more than 16,000 new teachers per year to meet enrollment growth and retirement replacement needs in targeted schools; and
WHEREAS, Every child should have the opportunity to have a highly qualified teacher in his or her classroom, but the Social Security Act offsets limit the number of fully credentialed teachers in the classroom by penalizing individuals who change from private to public employment; and
WHEREAS, The recruitment and retention of career firefighters, peace officers, and other public safety officers from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by the existing offsets, thereby making non-social security covered employment less attractive to those professionals and, as a result, limiting the number of experienced, knowledgeable people who might otherwise seek out public safety careers in California; and
WHEREAS, The recruitment and retention of teachers and other public employees from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by these offsets; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provision would greatly improve the opportunities for hiring and retaining teachers, peace officers, firefighters, and other public employees in California; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provision would provide economic stimulus across California by providing earned retirement benefits to public servants in every region of this great state during this time of economic distress; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature of the State of California requests the Congress of the United States to pass legislation repealing the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act, and further requests President Barack Obama to sign that legislation; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
WHEREAS, After 1965, Californias educators were not allowed to participate in the federal social security system; and
WHEREAS, Most peace officers and firefighters, and many other public employees, are not covered by social security; and
WHEREAS, Due to higher contribution rates, the California State Teachers Retirement System and the California Public Employees Retirement System provide retirees with superior benefits compared to those provided by the federal social security system; and
WHEREAS, The State Teachers Retirement System is not coordinated with the federal social security system; and
WHEREAS, The benefits of certain members of the Public Employees Retirement System and retirement systems established pursuant to the County Employees Retirement Law of 1937 are not coordinated with the federal social security system; and
WHEREAS, The public safety officers retirement plans are uniquely designed to address the special needs of their professions, including firefighters unique employment characteristics, such as the physical demands of the job, which ultimately result in higher injury rates and permanent disabilities; and
WHEREAS, The Social Security Act includes two offsets, the Government Pension Offset and the Windfall Elimination Provisions, that reduce the social security benefits payable to persons who are entitled to benefits under other retirement systems, under certain conditions which directly controvert the designed intention of these California public retirement system plans; and
WHEREAS, These provisions penalize individuals who move from private sector employment into teaching, public safety, and other careers in public service; and
WHEREAS, These provisions penalize individuals who earned social security benefits through their own employment prior to or after public service by denying earned benefits; and
WHEREAS, California has a significant teacher shortage and requires more than 16,000 new teachers per year to meet enrollment growth and retirement replacement needs in targeted schools; and
WHEREAS, Every child should have the opportunity to have a highly qualified teacher in his or her classroom, but the Social Security Act offsets limit the number of fully credentialed teachers in the classroom by penalizing individuals who change from private to public employment; and
WHEREAS, The recruitment and retention of career firefighters, peace officers, and other public safety officers from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by the existing offsets, thereby making non-social security covered employment less attractive to those professionals and, as a result, limiting the number of experienced, knowledgeable people who might otherwise seek out public safety careers in California; and
WHEREAS, The recruitment and retention of teachers and other public employees from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by these offsets; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provisions would greatly improve the opportunities for hiring and retaining teachers, peace officers, firefighters, and other public employees in California; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provisions would provide economic stimulus across California by providing earned retirement benefits to public servants in every region of this great state during this time of economic distress; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature of the State of California requests the Congress of the United States to support the Social Security Fairness Act of 2013, which would repeal pass legislation repealing the Government Pension Offset and the Windfall Elimination Provisions from the Social Security Act, and the Legislature of the State of California further requests President Barack Obama to sign that legislation; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
WHEREAS, After 1965, Californias educators were not allowed to participate in the federal social security system; and
WHEREAS, Most peace officers and firefighters, and many other public employees, are not covered by social security; and
WHEREAS, Due to higher contribution rates, the California State Teachers Retirement System and the California Public Employees Retirement System provide retirees with superior benefits compared to those provided by the federal social security system; and
WHEREAS, The State Teachers Retirement System is not coordinated with the federal social security system; and
WHEREAS, The benefits of certain members of the Public Employees Retirement System and retirement systems established pursuant to the County Employees Retirement Law of 1937 are not coordinated with the federal social security system; and
WHEREAS, The public safety officers retirement plans are uniquely designed to address the special needs of their professions, including firefighters unique employment characteristics, such as the physical demands of the job, which ultimately result in higher injury rates and permanent disabilities; and
WHEREAS, The Social Security Act includes two offsets, the Government Pension Offset and the Windfall Elimination Provisions, that reduce the social security benefits payable to persons who are entitled to benefits under other retirement systems, under certain conditions which directly controvert the designed intention of these California public retirement system plans; and
WHEREAS, These provisions penalize individuals who move from private sector employment into teaching, public safety, and other careers in public service; and
WHEREAS, These provisions penalize individuals who earned social security benefits through their own employment prior to or after public service by denying earned benefits; and
WHEREAS, California has a significant teacher shortage and requires more than 16,000 new teachers per year to meet enrollment growth and retirement replacement needs in targeted schools; and
WHEREAS, Every child should have the opportunity to have a highly qualified teacher in his or her classroom, but the Social Security Act offsets limit the number of fully credentialed teachers in the classroom by penalizing individuals who change from private to public employment; and
WHEREAS, The recruitment and retention of career firefighters, peace officers, and other public safety officers from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by the existing offsets, thereby making non-social security covered employment less attractive to those professionals and, as a result, limiting the number of experienced, knowledgeable people who might otherwise seek out public safety careers in California; and
WHEREAS, The recruitment and retention of teachers and other public employees from other states, who are entitled to social security benefits upon retirement, are also limited and restricted by these offsets; and
WHEREAS, The Social Security Fairness Act of 2013, which would repeal the Government Pension Offset and the Windfall Elimination Provisions, is currently before Congress; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provisions would greatly improve the opportunities for hiring and retaining teachers, peace officers, firefighters, and other public employees in California; and
WHEREAS, The elimination of the Government Pension Offset and the Windfall Elimination Provisions would provide economic stimulus across California by providing earned retirement benefits to public servants in every region of this great state during this time of economic distress; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature of the State of California requests the Congress of the United States to support the Social Security Fairness Act of 2013, which would repeal the Government Pension Offset and the Windfall Elimination Provisions from the Social Security Act, and the Legislature of the State of California further requests President Barack Obama to sign that legislation; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
|
Date
|
Status
|
|---|---|
| Dec 1, 2014 | Introduced. Referred to Com. on RLS. |
| Jan 12, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Jan 15, 2015 | Re-referred to Com. on P.E. & R. |
| Mar 25, 2015 | Set for hearing April 13. |
| Apr 14, 2015 | From committee: Be adopted. Ordered to third reading. (Ayes 4. Noes 1. Page 594.) (April 13). |
| Apr 16, 2015 | In Assembly. Held at Desk. |
| Apr 16, 2015 | Read. Adopted. (Ayes 33. Noes 5. Page 633.) Ordered to the Assembly. |
| Jun 11, 2015 | Referred to Com. on P.E., R., & S.S. |
| Jun 24, 2015 | From committee: Be adopted. Ordered to third reading. (Ayes 6. Noes 0.) (June 24). |
| Jul 2, 2015 | In Senate. Ordered to engrossing and enrolling. |
| Jul 2, 2015 | Read. Adopted. Ordered to the Senate. |
| Jul 2, 2015 | Read. Adopted. (Ayes 66. Noes 10. Page 2232.) Ordered to the Senate. |
| Jul 6, 2015 | Chaptered by Secretary of State. Res. Chapter 92, Statutes of 2015. |
| Jul 6, 2015 | Enrolled and filed with the Secretary of State at 3:15 p.m. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 2, 2015 | SJR 1 Beall Senate Third Reading By O'DONNELL | Assembly Floor |
Passed |
|
| Jun 24, 2015 | Be adopted. To third reading. | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
|
| Apr 16, 2015 | Senate 3rd Reading SJR1 Beall | Senate Floor |
Passed |
|
| Apr 13, 2015 | Be adopted. Ordered to third reading | Senate Standing Committee on Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association For Los Angeles Deputy Sheriffs | ** Support | Jun 24, 2015 |
| Association Of California Community College Administrators | * Support | Jun 24, 2015 |
| Association Of California School Administrators | ** Support | Jun 24, 2015 |
| CAL FIRE, Local 2881 | ** Support | Jun 24, 2015 |
| California Association Of Highway Patrolmen | ** Support | Jun 24, 2015 |
| California Federation Of Teachers | ** Support | Apr 16, 2015 |
| California Retired Teachers Association | ** Support | Jun 24, 2015 |
| California State Firefighters' Association | ** Support | Jun 24, 2015 |
| California State Lodge, Fraternal Order of Police | ** Support | Jun 24, 2015 |
| California State Retirees | ** Support | Jun 24, 2015 |
| California State Teacher's Retirement System | * Support | Jun 24, 2015 |
| California Teachers Association | ** Support | Jun 24, 2015 |
| Faculty Association Of California Community Colleges | ** Support | Jun 24, 2015 |
| Long Beach Police Officers Association | ** Support | Jun 24, 2015 |
| Los Angeles County Employees Retirement Association | ** Support | Jun 24, 2015 |
| Los Angeles County Probation Officers Union | ** Support | Apr 16, 2015 |
| Los Angeles County Professional Peace Officers Association | ** Support | Jun 24, 2015 |
| Los Angeles Police Protective League | ** Support | Jun 24, 2015 |
| Los Angeles Probation Officers Union | ** Support | Jun 24, 2015 |
| Organization Of Smud Employees | ** Support | Jun 24, 2015 |
| Retired Public Employees Association | ** Support | Jun 24, 2015 |
| Riverside Sheriffs' Association | ** Support | Apr 16, 2015 |
| Sacramento County Deputy Sheriffs' Association | ** Support | Jun 24, 2015 |
| San Bernardino Public Employees Association | ** Support | Jun 24, 2015 |
| San Diego County Court Employees Association | ** Support | Jun 24, 2015 |
| San Luis Obispo County Employees Association | ** Support | Jun 24, 2015 |
| Santa Ana Police Officers Association | ** Support | Jun 24, 2015 |
SJR 1
Page 2
SENATE THIRD READING
SJR 1
(Beall and Pavley)
As Amended January 12, 2015
Majority vote
SENATE VOTE: 33-5
Committee |
Votes |
Ayes |
Noes |
Public Employees |
6-0 |
Bonta, Waldron, Cooley, Jones-Sawyer, O'Donnell, Rendon |
|
SUMMARY: Requests Congress to pass, and President Barack Obama to sign, legislation repealing the Social Security Act's Windfall Elimination Provision and Government Pension Offset. Specifically, this resolution:
Requests that the Congress of the United States (U.S.) pass legislation repealing the Government Pension Offset (GPO) and the Windfall Elimination Provisions (WEP) from the Social Security Act.
Specifies that the Legislature of the State of California further requests President Barack Obama to sign that legislation.
Requires that the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the U.S., to the Speaker of the House of Representatives, the Majority Leader of the Senate, and each Senator and Representative from California in the Congress of the U.S., and to the author.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.
COMMENTS: Under federal law, state and local public employees who work for an employer in a position not coordinated with Social Security and who receive a government pension upon retirement may be affected by two federal offsets to their Social Security benefits.
The WEP affects individuals who earn a pension in any job where the person did not pay into Social Security and also worked in other jobs long enough to qualify for a Social Security retirement or disability benefit for those jobs. Depending on how many years of qualifying substantial earnings the individual has in Social Security, the WEP results in a pro rata reduction of 40% to 90% of one of the three factors used in determining the average monthly earnings upon which the Social Security benefit is based.
The GPO affects individuals who earn a government pension based on work where the employee did not pay into Social Security but who are also eligible for Social Security dependent's benefits (i.e., benefits based on a spouse's Social Security benefit or as the widow or widower of an eligible Social Security benefit recipient). The GPO reduces the dependent's Social Security spouse/widow/widower benefit by two-thirds of the amount of the individual's government pension.
In California, the WEP and the GPO primarily impact teachers and public safety officers who begin their careers in the private sector and earn enough qualifying quarters to receive a Social Security benefit but then switch mid-career to become, for example, a teacher in a public school or a safety officer in a job with a state or local government employer not coordinated with Social Security. Many do not learn of the consequences to their Social Security benefits until they apply to begin receiving Social Security benefits.
Numerous other resolutions have been adopted by the California legislature in the past to encourage Congress and the President to eliminate, or limit the application of, the Social Security offsets. These include: SJR 30 (Hancock), Resolution Chapter 126, Statutes of 2012, AJR 10 (Torlakson), Resolution Chapter 103, Statues of 2009; AJR 5 (Hernandez), Resolution Chapter 116, Statutes of 2007; SJR 15 (Dutton), Resolution Chapter 62, Statutes of 2006; AJR 29 (Pavley), Resolution Chapter 65, Statutes of 2003; AJR 3 (Leonard), Resolution Chapter 66, Statutes of 2001; and, SJR 4 (Soto), Resolution Chapter 94, Statutes of 2001.
Analysis Prepared by: Karon Green / P.E., R., & S.S. / (916) 319-3957 FN: 0001075
SJR 1
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SJR 1
Author: Beall (D) and Pavley (D), et al.
Amended: 1/12/15
SENATE PUBLIC EMP. & RET. COMMITTEE: 4-1, 4/13/15
AYES: Pan, Beall, Fuller, Hall
NOES: Morrell
SUBJECT: Social security: retirement benefits: public employees
SOURCE: Association of California School Administrators
California Retired Teachers Association
California Teachers Association
Faculty Association of California Community Colleges
DIGEST: This resolution asks Congress to pass, and President Barack Obama to sign, legislation repealing the Social Security Act’s Windfall Elimination Provision and Government Pension Offset.
ANALYSIS: Existing federal law requires that a beneficiary’s Social Security allowance be offset if the beneficiary also receives a government pension and was employed by an employer not coordinated with Social Security.
This resolution asks Congress to pass, and President Barack Obama to sign, legislation repealing the Social Security Act’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
Background
Under federal law, state and local public employees who work for an employer in a position not coordinated with Social Security and who receive a government pension upon retirement may be affected by two federal offsets to their Social Security benefits.
WEP affects individuals who earn a pension in any job where the person did not pay into Social Security and also worked in other jobs long enough to qualify for a Social Security retirement or disability benefit for those jobs. Depending on how many years of qualifying substantial earnings the individual has in Social Security, WEP results in a pro rata reduction of 40 to 90 percent of one of the three factors used in determining the average monthly earnings upon which the Social Security benefit is based.
GPO affects individuals who earn a government pension based on work where the employee did not pay into Social Security but who are also eligible for Social Security dependent’s benefits (i.e., benefits based on a spouse’s Social Security benefit or as the widow or widower of an eligible Social Security benefit recipient). GPO reduces the dependent’s Social Security spouse/widow/widower benefit by two-thirds of the amount of the individual’s government pension.
In California, WEP and GPO primarily impact teachers and public safety officers who begin their careers in the private sector and earn enough qualifying quarters to receive a Social Security benefit but then switch mid-career to become, for example, a teacher in a public school or a safety officer in a job with a state or local government employer not coordinated with Social Security. Many do not learn of the consequences to their Social Security benefits until they apply to begin receiving Social Security benefits.
Prior/Related Legislation
All of the following resolutions are substantially the same as SJR 1:
SJR 30 (Hancock), Resolution Chapter 126, Statutes of 2012
AJR 10 (Torlakson), Resolution Chapter 103, Statutes of 2009
AJR 5 (Hernandez), Resolution Chapter 116, Statutes of 2007
SJR 15 (Dutton), Resolution Chapter 62, Statutes of 2006
AJR 3 (Leonard), Resolution Chapter 66, Statutes of 2001
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
Association of California School Administrators (co-source)
California Retired Teachers Association (co-source)
California Teachers Association (co-source)
Faculty Association of California Community Colleges (co-source)
American Federation of State, County and Municipal Employees, Local 685
Association for Los Angeles Deputy Sheriffs
CAL FIRE, Local 2881
California Association of Highway Patrolmen
California Federation of Teachers
California State Teachers’ Retirement System
Glendale City Employees’ Association
Los Angeles Police Protective League
Los Angeles County Probation Officers Union
Organization of SMUD Employees
Retired Public Employees Association of California
Riverside Sheriffs’ Association
San Bernardino Public Employees Association
San Diego County Court Employees Association
San Luis Obispo County Employees Association
OPPOSITION: (Verified 4/14/15)
None received
ARGUMENTS IN SUPPORT: The California Teachers Association states that WEP and GPO “penalize teachers who come into the classroom as a second career by either reducing or eliminating the Social Security benefits they contributed to during their time in the private sector.”
According to the California Retired Teachers Association, WEP and GPO “harm California’s public school educators, fire fighters, police and many other dedicated public servants.”
The Association for Los Angeles Deputy Sheriffs adds that WEP and GPO “affect recruitment of career peace officers and additional public safety job holders from other states.”
Prepared by: Glenn Miles / P.E. & R. / (916) 651-1519
4/15/15 16:28:51
SJR 1 (Beall) Page 3 of 3
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2015 - 2016 Regular
Bill No: SJR 1 Hearing Date: 4/13/15
Author: |
Beall |
||
Version: |
1/12/15 As amended |
||
Urgency: |
No |
Fiscal: |
No |
Consultant: |
Glenn Miles |
||
Subject: Windfall Elimination Provision and Government Pension Offset repeal
SOURCE: Association of California School Administrators
California Retired Teachers Association
California Teachers Association
Faculty Association for California Community Colleges
DIGEST: This resolution asks Congress to pass, and President Barack Obama to sign, legislation repealing the Social Security Act’s Windfall Elimination Provision and Government Pension Offset.
ANALYSIS: Existing federal law requires that a beneficiary’s Social Security allowance be offset if the beneficiary also receives a government pension and was employed by an employer not coordinated with Social Security.
This resolution asks Congress to pass, and President Barack Obama to sign, legislation repealing the Social Security Act’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
Background
Under federal law, state and local public employees who work for an employer in a position not coordinated with Social Security and who receive a government pension upon retirement may be affected by two federal offsets to their Social Security benefits.
WEP affects individuals who earn a pension in any job where the person did not pay into Social Security and also worked in other jobs long enough to qualify for a Social Security retirement or disability benefit for those jobs. Depending on how many years of qualifying substantial earnings the individual has in Social Security, WEP results in a pro rata reduction of 40 to 90 percent of one of the three factors used in determining the average monthly earnings upon which the Social Security benefit is based.
GPO affects individuals who earn a government pension based on work where the employee did not pay into Social Security but who are also eligible for Social Security dependent’s benefits (i.e., benefits based on a spouse’s Social Security benefit or as the widow or widower of an eligible Social Security benefit recipient). GPO reduces the dependent’s Social Security spouse/widow/widower benefit by two-thirds of the amount of the individual’s government pension.
In California, WEP and GPO primarily impact teachers and public safety officers who begin their careers in the private sector and earn enough qualifying quarters to receive a Social Security benefit but then switch mid-career to become, for example, a teacher in a public school or a safety officer in a job with a state or local government employer not coordinated with Social Security. Many do not learn of the consequences to their Social Security benefits until they apply to begin receiving Social Security benefits.
Prior/Related Legislation
All of the following resolutions are substantially the same as SJR 1:
SJR 30 (Hancock), Resolution Chapter 126, Statutes of 2012
AJR 10 (Torlakson), Resolution Chapter 103, Statutes of 2009
AJR 5 (Hernandez), Resolution Chapter 116, Statutes of 2007
SJR 15 (Dutton), Resolution Chapter 62, Statutes of 2006
AJR 3 (Leonard), Resolution Chapter 66, Statutes of 2001
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT:
Association of California School Administrators (co-source)
California Retired Teachers Association (co-source)
California Teachers Association (co-source)
Faculty Association of California Community Colleges (co-source)
American Federation of State, County and Municipal Employees, Local 685
Association for Los Angeles Deputy Sheriffs
CAL FIRE, Local 2881
California Association of Highway Patrolmen
California Federation of Teachers
California State Teachers’ Retirement System
Glendale City Employees’ Association
Los Angeles Police Protective League
Los Angeles County Probation Officers Union
Organization of SMUD Employees
Retired Public Employees Association of California
Riverside Sheriffs’ Association
San Bernardino Public Employees Association
San Diego County Court Employees Association
San Luis Obispo County Employees Association
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: The California Teachers Association states that WEP and GPO “penalize teachers who come into the classroom as a second career by either reducing or eliminating the Social Security benefits they contributed to during their time in the private sector.”
According to the California Retired Teachers Association, WEP and GPO “harm California’s public school educators, fire fighters, police and many other dedicated public servants.”
The Association for Los Angeles Deputy Sheriffs adds that WEP and GPO “affect recruitment of career peace officers and additional public safety job holders from other states.”
Discussed in Hearing
1MIN
Assembly Floor
8MIN
Assembly Standing Committee on Public Employees, Retirement, and Social Security
11MIN
Senate Floor
4MIN
Senate Standing Committee on Public Employment and Retirement
Bill Co-Author(s):
