Social Security Issues in the 110th Congress

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Social Security Issues in the 110th Congress

• NCPERS
• 2007

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CONTEXT
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United States Senate


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House of Representatives
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New Congressional Leadership

• Senate
• Majority Leader
• Harry Reid (D-NV)
• Senate
• Minority Leader
• Mitch McConnell (R-KY)

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• Speaker of the House
• Nancy Pelosi (D-CA)

House Majority Leader Steny Hoyer (D-MD)
House Minority Leader John Boehner (R-OH)
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SENATE FINANCE COMMITTEE

• Previous Chair Charles Grassley (R-IA)
• New Chair Max Baucus (D-MT)

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HOUSE WAYS AND MEANS COMMITTEE

• Previous Chair Bill Thomas (R-CA)
• New Chair Charlie Rangel (D-NY)

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SOCIAL SECURITY OFFSETS
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What is the Government Pension Offset?
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• Reduces some public employees Social Security
  spousal or survivor benefits by two-thirds of
  their public pension.

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WHOM DOES IT AFFECT?

• Any public employee who does not pay into Social
  Security but whose spouse does/did.
• public employee expects survivor benefits based
  on deceased spouses earnings.

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What is the Windfall Elimination Provision?
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• Changes Social Security formula to reduce EARNED
  benefits of persons with a public pension.
• Some employees lose up to 340 per month (maximum
  reduction for 2007) in Social Security.

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WHOM DOES IT AFFECT?

• Public employees receiving pension from job not
  covered by Social Security.
• Affects benefits from
• Earnings in prior career
• Earnings in a non-offset state
• Earnings from part-time or summer jobs.

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The SolutionSocial Security Fairness Act

• NEA worked to get re-introduced in House (H.R.
  82) and Senate (S. 206) in first few days of the
  110th Congress.
• In last Congress, record numbers of Members of
  Congress cosponsored.
• Need to rebuild cosponsor lists in the 110th
  Congress!

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What Would the Bill Do?

• Completely repeal GPO and WEP.
• Anyone currently impacted would be helped
  prospectively.
• Not retroactive to cover benefits already lost.

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Why is it Taking So Long???

• Legislation takes on average 7-8 years to move
  through Congress.
• Opposition from previous congressional leaders
• Cost (ten year cost of full repeal is over 60
  billion)
• Philosophical disagreement (double dipping)

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New Opportunities?

• New congressional leadership offers new
  opportunities.
• New committee chairs with jurisdiction
• House Ways and Means Charlie Rangel (D-NY),
  cosponsored repeal bill last year.
• Senate Finance Max Baucus (D-MT) not a
  cosponsor in the past.

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• Will still have obstacles
• Cost continues to be an issue
• Congress may continue to push issue off until
  they address larger Social Security reform

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Campaign to Repeal the Offsets
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COALITION TO ASSURE RETIREMENT EQUITY (CARE)

• NEA is a member, along with other unions,
  firefighters, police, etc.
• Working together to target Members of Congress,
  activate grassroots, and conduct other activities
  in support of repeal.

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What Can You Do?

• Contact all Members of Congress
• Explain impact of offsets on you, your
  colleagues, your profession.
• Thank cosponsors of House and Senate bills urge
  all other Members to cosponsor the Social
  Security Fairness Act (H.R. 82/S.206).

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• Ask Governor to write Congress and state
  legislature to pass a resolution calling on
  Congress to repeal the GPO and WEP.
• Organize a call-in day.
• Deliver postcards to Members of Congress in their
  local offices.
• Go to NEA website or website of your organization
  and send an e-mail message to Congress ask
  friends, family, and co-workers to do the same.
  

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• Reach out to other impacted groups in your area.
• Organize a rally.
• Host a town hall meeting with a wide cross
  section of public employees.
• Submit a letter to the editor or an op-ed to your
  local newspaper.

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Talking Points

• GPO and WEP take away benefits folks have EARNED
  by working for many years.
• This is a national problem --there are affected
  people in all states.

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• Economic Impact
• Loss of income forces some people into poverty
  and onto expensive government programs like food
  stamps.
• Impacted people have less to spend -- hurts
  local economies.

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• IMPACT ON THE PUBLIC SECTOR
• GPO and WEP discourage people from
  entering/staying in public sector professions.
• If Congress wants to encourage people moving from
  private sector into public service, they must
  address the offsets!
• These issues are important to voters!!

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Remember

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

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PRIVATIZATION
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A Little History

• At start of 109th Congress, Social Security was
  on the front-burner.
• President was pushing privatization and the issue
  appeared on the fast track.

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Where Are We Now?

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

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Outlook for 110th Congress

• Unclear if/when Social Security will be on
  agenda.
• Democrats in charge oppose privatization.
• Dems. priorities for 1st 100 hours included
  fighting any attempt to privatize Social
  Security.

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CONTINUE TO OPPOSE ANY PRIVATIZATION!!

• Would jeopardize secure retirement of many
  Americans.
• Cost could reach over 1 trillion in ten years.
• Would subject financial security to unpredictable
  ups and downs of the market.

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Mandatory Coverage
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The Issue

• Some reform proponents suggest requiring Social
  Security participation for all public employees.
  
• This is a bad idea
• Would weaken state and local plans.
• Increase state and local financial burdens.
• Wont solve Social Securitys financial concerns.

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Mandatory Coverage Status

• Strong bipartisan coalition in Congress opposed
  to mandatory coverage.
• Issue off table until Social Security reform
  resurfaces.

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QUESTIONS ?
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