[Congressional Record Volume 147, Number 135 (Wednesday, October 10, 2001)]
[Senate]
[Page S10459]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 1523. A bill to amend title II of the Social Security Act to 
repeal the Government pension offset and windfall elimination 
provisions; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
to repeal the Government pension offset and windfall elimination 
provisions of the Social Security Act, provisions of current law that 
reduce earned Social Security benefits for teachers and other 
government pensioners.
  Under current law, public employees, whose salaries are often lower 
than those in the private sector to begin with, find that they are 
penalized and held to a different standard when it comes to retirement 
benefits. The unfair reduction in their benefits makes it more 
difficult to recruit teachers, police officers, and fire fighters.
  The legislation that I introduce today addresses two provisions in 
the current Social Security Act that create this problem: The Windfall 
Elimination Provision and the Government Pension Offset provision.
  The Social Security Windfall Elimination Provision reduces Social 
Security benefits for retirees who paid into Social Security and also 
receive a government pension, such as from a teacher retirement fund. 
Private sector retirees receive monthly Social Security checks equal to 
90 percent of their first $561 in average monthly career earnings, plus 
32 percent of monthly earnings up to $3,381 and 15 percent of earnings 
above $3,381. Government pensioners, however, are only allowed to 
receive 40 percent of the first $561 in career monthly earnings, a 
penalty of $280.50 per month.
  To my mind it is simply unfair, especially at a time when we need to 
be doing all we can to attract qualified people government service, and 
this bill will allow government pensioners the chance to earn the same 
90 percent to which non-government pension recipients are entitled.
  The current Government Pension Offset provision reduces Social 
Security spousal benefits by an amount equal to two-thirds of the 
spouse's public employment civil service pension. This can have the 
effect of taking away, entirely, a spouse's benefits from Social 
Security.
  It is beyond my understanding why we would want to discourage people 
from pursuing careers in public service, such as teaching, by 
essentially saying that if you do become a teacher your family will 
suffer by not being able to receive the full retirement benefits they 
would otherwise be entitled to.
  There is a teaching crisis in California right now, as there is in 
many States. Yet current Social Security benefit rules penalize private 
sector employees who leave their jobs to become public school teachers, 
or public school teachers who work second jobs during the summer months 
to help make ends meet. They lose legitimately earned Social Security 
benefits. And in certain cases, their wives and husbands will lose 
spousal benefits, too.
  That is simply not fair and not right. California faces a teaching 
crisis, and we need to do everything we can to attract and keep good, 
qualified people as public school teachers, not make an already 
difficult job more difficult.
  The same can be said for other public employees, like police and fire 
fighters.
  This legislation addresses this inequity in the Social Security Act, 
and I urge my colleagues to support it.
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