Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/07/2024 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HJR18 | |
| HB330 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 330 | TELECONFERENCED | |
| *+ | HJR 18 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HJR 18-SOCIAL SECURITY BENEFIT REDUCTION REPEAL
3:38:38 PM
CHAIR KAWASAKI announced the consideration of CS FOR HOUSE JOINT
RESOLUTION NO. 18(STA) Urging the United States Congress to
repeal the Windfall Elimination Provision and Government Pension
Offset of the Social Security Act.
3:38:58 PM
REPRESENTATIVE ALYSE GALVIN, District 14, Alaska State
Legislature, Juneau, Alaska, said that the issue addressed by
HJR 18 may be familiar to members, as similar resolutions have
been passed in recent years. She explained that HJR 18 would
encourage the United States Congress to pass the Social Security
Fairness Act, Senate Bill 1723 (S.1723). She stated that
Alaska's public employees are unfairly penalized through two
provisions of the social security act: the Windfall Elimination
Provision (WEP) and Government Pension Offset (GPO). She
emphasized the need for HJR 18 to move through the legislative
process as quickly as possible. She pointed out that S.1723 has
bipartisan congressional support, with over 300 cosponsors in
the House and 53 sponsors in the Senate. She said that Alaska is
disproportionately affected by this issue, with 11.7 percent of
all beneficiaries and 15.2 percent of all retired workers
impacted. She added that many new employees are not aware that
they will be affected when they reach retirement. She gave an
example to illustrate how public employees may be penalized when
they receive their social security benefits. She added that,
should the employee pass away, their beneficiary would also be
unfairly penalized.
3:41:05 PM
SENATOR CLAMAN joined the meeting.
3:42:51 PM
MEREDITH TRAINOR, Staff, Representative Galvin, Alaska State
Legislature, Juneau, Alaska, presented an overview of HJR 18.
She said HJR 18 urges Congress to repeal WEP and GPO of the
Social Security Act by voting on bipartisan legislation that has
been introduced. She explained that WEP and GPO penalize workers
who split their careers between a job that withholds social
security and a job that pays into a different retirement
program. For example, in Alaska this might be the Public
Employees' Retirement System (PERS) or the Teachers Retirement
System (TRS). These individuals' benefits are greatly reduced,
to avoid a perceived "windfall." After death, this reduction is
passed along to their beneficiaries.
3:44:00 PM
MS. TRAINOR said that these employees did not choose to opt out
of social security; rather, they chose to spend part of their
career as public servants. She emphasized that their social
security contributions should not be discounted for their desire
to serve the Alaskan public. She stated that Alaska has the
highest percentage or WEP/GPO affected beneficiaries of any
state - 15.2 percent of retired workers impacted are Alaskans.
She noted that Alaskan Senator Lisa Murkowski and Representative
Mary Peltola are cosponsors of Social Security Fairness Act
legislation that would eliminate this penalty for Alaskans - and
other Americans - affected by WEP/GPO. She reiterated that this
congressional legislation has bipartisan support. She commented
that time is of the essence. She emphasized the importance of
making a clear request of Alaska's congressional delegation and
added that beneficiaries have waited too long for relief on this
issue.
3:46:09 PM
MS. TRAINOR moved to slide 2 of the presentation titled, "HJR
18: Urging the United States Congress to Repeal the Windfall
Elimination Provision and Government Pension Offset:
[Original punctuation provided.]
WHAT ARE WEP/GPO?
THE WINDFALL ELIMINATION PROVISION
The Windfall Elimination Provision (WEP)can affect how
Social Security calculates your retirement or
disability benefit. If you work for an employer who
doesn't withhold Social Security taxes from your
salary, any retirement or disability pension you get
from that work can reduce your Social Security
benefits. Such an employer may be a government agency
or an employer in another country.
MS. TRAINOR noted that many employees do not discover the impact
these provisions will have on their Social Security benefits
until they retire.
3:46:39 PM
MS. TRAINOR moved to slide 3:
[Original punctuation provided.]
WHAT ARE WEP/GPO?
THE GOVERNMENT PENSION OFFSET
The Government Pension Offset (GPO) adjusts Social
Security spousal or widow(er) benefits for people who
receive "non-covered pensions." A non-covered pension
is a pension paid by an employer that does not
withhold Social Security taxes from your salary,
typically, state and local governments or non-U.S.
employers.
Under Social Security's dual-entitlement rule, spouses
with their own covered earnings have their spousal
benefits offset dollar-for-dollar by their own earned
benefit. The GPO has a similar intention; the offset
originally was dollar-for-dollar for non-covered
pensions, but Congress reduced it to two-thirds in
1983.
MS. TRAINOR noted that neither provision was original to the
Social Security Act but were added in the 1970s and 1980s.
3:47:20 PM
MS. TRAINOR moved to slide 4:
[Original punctuation provided.]
THE WEP/GPO in Alaska
ACCORDING TO THE CONGRESSIONAL RESEARCH SERVICE...
Alaska has the highest percentage of WEP-affected
beneficiaries of any state, with 11.7 percent of all
beneficiaries and 15.2 percent of all retired workers
THIS IS A BIPARTISAN ISSUE
There are over 300 co-sponsors in the U.S House*
There are over 49 co-sponsors in the US Senate*
ALASKANS ARE DIFFERENT
With many veteran and seasonal employment
opportunities, our teachers, troopers, and
firefighters can be disproportionately penalized by
these provisions
3:47:45 PM
MS. TRAINOR said that the only way to avoid being impacted by
these provisions is to work a minimum of 30 years for an entity
that withholds for social security payments. She moved to slide
5 and pointed out that WEP/GPO impact a variety of individuals,
including teachers, rural workers, families, and retirees:
[Original punctuation provided.]
WEP-GPO ROLLBACK ENJOYS WIDESPREAD CONSTITUENT SUPPORT
"...I have at least 40+ years working experience. I
spent 26 years as an elementary school teacher on the
North Slope and in Fairbanks. During my work years I
worked at various jobs before and during college,
summer jobs to help make ends meet while teaching, and
for the University of Alaska as an adjunct professor
(all paying into social security). I have earned well
over forty quarters towards my Social Security
benefits over the years."
"My current Social Security benefit, after paying my
monthly premium for Medicare is $65,00, well under
what I am entitled. I earned those benefits on the
jobs outside of my public service and because of my
public school teaching I face the penalty of the WEP."
"I am married to a Social Security beneficiary who
spent his whole career in private employment...If he
were to pass away before me, using the current formula
of my public service in Alaska, I would not be able to
receive any of his spouse survival benefits that
others receive. He paid into the Social Security
system his whole work life and due to the GPO penalty,
none of the normal spousal benefits will apply for
me..."
3:48:31 PM
CHAIR KAWASAKI opened invited and public testimony on HJR 18.
3:48:57 PM
MARILYN PILLIFANT, representing self, Anchorage, Alaska,
testified in support of HJR 18. She said it is imperative to
pass this resolution. She shared that, when she retired after a
30-year teaching career, she discovered that her retirement
would be penalized because of GPO-WEP. She explained that, prior
to teaching, she worked in the private sector for over 20 years.
She paid into social security at that time and was under the
impression that it would count toward her retirement. However,
when she retired from teaching, she discovered that her social
security is diminished. She emphasized the unfair and punitive
nature of GPO-WEP and added that most teachers are not aware of
these provisions. She noted that during the Congressional House
Ways and Means committee, many retirees testified that they had
been penalized and now needed to fill in gaps in their
retirement. She encouraged support of HJR 18 and expressed
gratitude to Representative Galvin.
3:51:54 PM
CHAIR KAWASAKI closed public testimony on HJR 18.
3:52:07 PM
CHAIR KAWASAKI held HJR 18 in committee.