(SitNews) Juneau, Alaska - Senate Joint Resolution 12 urging Congress to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) of the Social Security Act unanimously passed the Alaska Senate on Friday.

The WEP cuts the Social Security benefits of public employees in Alaska if they switch between work in the public sector and private sector or the military. In 2021, this loss could be as much as $498 per month, or about $6,000 a year. The GPO cuts spousal or widows’ benefits for public employees for no reason other than their work time in the public sector. This cut could amount to as much as 2/3rds the value of the individual’s government pension.

Because Alaska is one of few states that no longer provides a defined benefit plan and does not offset coverage by Social Security, the WEP and GPO affect more Alaskans per capita than in any other state. Public employees in Alaska are essentially punished for choosing to work in public service.

The WEP and GPO negatively impact the recruitment and retention of Alaska public employees like firefighters, police officers, and teachers. Those who do not want to be subject to these provisions will simply look elsewhere for employment.

Quoting a news letter published by Senator Bill Wielechowski (D-Anchorage), punishing individuals for choosing public service runs counter to retaining dedicated Alaskan workers and recruiting the best of the best to and within Alaska. Passage of SJR 12 will demonstrate that the Alaska Legislature opposes arbitrary and unfair cuts to the rightfully earned Social Security benefits of Alaskans.

The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) are two separate provisions that reduce regular Social Security benefits for workers and their eligible family members if the worker receives (or is entitled to) a pension based on earnings from employment not covered by Social Security.

As of December 2021, about 2.0 million people (or about 3% of all Social Security beneficiaries) were affected by the WEP. Nearly 1.9 million of those affected were retired- worker beneficiaries, which was about 4% of the entire retired-worker beneficiary population. The remaining affected individuals were disabled-worker beneficiaries and eligible family members of retired- or disabled-worker beneficiaries.

In December 2021, 723,970 Social Security beneficiaries, or about 1% of all beneficiaries, had their benefits reduced by the GPO. Of those directly affected by the GPO, 52% were spouses and 48% were widow(er)s. The GPO affected 17% of all spouse beneficiaries and 9% of all widow(er) beneficiaries. About 71% of all GPO-affected beneficiaries had their benefits fully offset and about 29% had their benefits partially offset.

The WEP was enacted in 1983 as part of major amendments designed to shore up the financing of Social Security. The GPO was enacted in 1977, after the Supreme Court ruled that men were not required to prove that they received at least one-half of their support from their wives in order to qualify for husband’s or widower’s benefits.

SJR 12 unanimously passed the Alaska Senate Friday and will now go to the Alaska House for consideration.

On the Web:

Senate Joint Resolution 12

Source of News:

Office of Senator Bill Wielechowski
www.akleg.gov

Congressional Research Service (CRS)

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