Weekly Column: Support the Social Security Fairness Act

June 13, 2007

Across Maine, roughly 80,000 current and retired teachers, police, firefighters, and other civil servants have collectively paid tens of billions of dollars into the federal social security system. Unfortunately, for most of these workers and the spouses they may have, they are not likely to see much of that money. As a result of the federal Government Pension Offset (GPO) and Windfall Eliminations Provision (WEP) enacted in 1977 and 1983, the federal government essentially blocks or reduces by half the social security benefits paid to these workers when they retire.

To put this into perspective, take the following example of a person who has paid into social security for 18 years. Following a career in the private sector, that person may have also taught in a public school for another 18 years. If the teacher receives any social security benefits at all, then those benefits would be drastically cut. Moreover, if the teacher is married, their spouse’s social security benefits would also be drastically reduced. Essentially, two decades of social security contributions are gone.

While social security administrators argue that it is not a retirement account, those who have paid into social security deserve to receive the same benefits others have paid in over the years.

Recently, I joined over 140 Maine Representatives and Senators to sign on as cosponsor of a joint resolution in the Maine Legislature to send to Congress and our President urging them to enact the federal Social Security Fairness Act of 2007. If Congress approves the Act and President Bush signs it into law, then both the Government Pension Offset and the Windfall Elimination Provision would be eliminated. I am pleased to say that our entire Congressional Delegation supports the Act, and that it has strong support in the United States House of Representatives with over 300 cosponsors and 30 more in the U.S. Senate.

Support for the Act is growing because Maine is not the only state dealing with the GPO and the WEP. There are 14 other states also grappling with these twin federal policies, which have disproportionately affected Maine and other states ability to attract and retain effective and qualified workers. For those Maine workers aware of the GPO and WEP, it may alter their decision to become a teacher or firefighter knowing they could be hit later with retirement penalties. In addition to creating instability in the future retirement plans, these policies reduce the overall incomes of our citizens who ultimately pay taxes and contribute to our economy.

So what can we all do to help the 80,000 current and retired teachers, police, firefighters, and other civil servants who are losing billions of dollars in retirement benefits?

Since this is a federal matter, it is important to support our federal leaders on this issue who are working to correct this multi-billion federal grab of our retirement dollars, and to urge others to support HR 82, the Social Security Fairness Act of 2007. You can call your U.S. Senator or Congressman by dialing the Capitol Switchboard at (202) 224-3121, or you can find out more information on how to e-mail or write them at http://thomas.loc.gov.

I think it is important to note that in a recent press conference, Congressman Tom Allen pointed out that he has supported legislation like HR 82 since he has been in Congress, but that Republican Leadership have refused to allow a vote on this issue for the past twelve years. This should not be a Democratic or Republican issue because it affects people of all political parties and classes. Maine retirees and people across the country have lost enough money, it is time for Congress to act.

Libby Mitchell is the Senate Majority Leader in the Maine Senate. She represents the communities of Augusta, Vassalboro, China, Oakland, and Sidney for District 24.