Thank you for providing the opportunity to provide testimony regarding the personal impact that the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) have on me.

I retired in 1995 after a working career that spanned 35 years. For 15 years I worked full-time in jobs covered by Social Security. The first six of these years were my lowest earning years. I worked as a clerk-typist for a small manufacturing company in St. Louis while I finished my teaching degree in night school at Washington University. The last nine of these years (and the years immediately preceding my retirement) were my highest earning years. In each of these nine years I contributed the maximum F.I.C.A. required by Social Security.

For 17 years I was a teacher, contributing 9-1/2 to 10-1/2 percent of my salary to the Public School Retirement System of Missouri (PSRS). My school districts, Ladue and Parkway, contributed and equal amount to my pension. These are monies that I would have been paid in salary. I also worked part-time during my teaching years as a consultant, teaching summer school and teaching at the graduate level. For these jobs, however, a F.I.C.A. contribution was automatically deducted. I did not have a choice.

Although I tried several times, beginning in 1986 or 1987, to find out what the impact of the Windfall Elimination Provision would be on my Social Security benefit, I had difficulty getting any accurate information. The local Social Security offices that I contacted, and yes, I did contact several hoping that someone would have the answers, would refer me back to the Public School Retirement System.  PSRS would refer me back to the Social Security offices. Written estimates of benefits I requested from Social Security were also vague.

In 1995 I retired. Yes, I was only 55 at the time and took advantage of an early retirement program offered by the Parkway School District in Missouri. Since I was vested but did not have 25 years in the retirement system, I needed to wait until age 60 to start collecting any pension and I also knew that I would be age 62 before I could start drawing Social Security. I knew my Social Security benefit would be reduced but still did not have an accurate estimate of how much.

But my husband and I were not worried about our financial security at the time. We had saved and invested wisely over a period of many years. We built our own home, literally, had no mortgage and no car payments - and no debt. Our "nest egg" would be more than adequate to support us through our retirement years.  

In 2000 I began to collect my public pension, which now amounts to $1468 a month, less federal and state taxes.  In 2002, at age 62, I applied for Social Security for which I now receive $648 per month. Of course this is subject to income taxes and is about $400 per month less what it should be because of the Windfall Elimination Provision, just because I have a public pension. This is not a lot of money after a 35-40 year career in the workforce!

When the Government Pension Offset was passed by Congress, I'm not sure that I was even aware of it. And even if I had been, retirement and the possibility of my spouse predeceasing me was something that was so far in the future that I probably wouldn't have given it much thought. My husband is now 72 and has a history of heart attacks in his family. I am 67 and have a family history of longevity.  My 95 year old father still lives by himself and just bought a new “previously used” car.  Our future is here. The probability that that my spouse will predecease me is quite real.

My husband retired from McDonnell-Douglas/Boeing in September, 1997, after more than thirty years with that company and another ten years of employment elsewhere. He was not a manager or an executive, but an electrician. His pension from Boeing now nets him $807 per month after taxes and over $450 per month for health care and Medicare supplemental coverage is deducted. He receives $1207 per month for Social Security, also subject to taxes. Even if you add our pensions and Social Security benefits together, we are far from being wealthy.

In the last five years our financial situation has changed significantly, making the repeal of the Windfall Elimination Provision and the Government Pension Offset imperative. Because of the economy, assumptions we made when we retired are no longer accurate even though we did careful planning, invested wisely and met with all sorts of financial advisors over the years.

Like many others in this country, our nest egg, the money we counted on during retirement, has shriveled to less than 50% of its value five years ago. We also aren't making the money on our investments that were predicted at the time of our retirement. We have two older model cars and wince at paying $3.00 per gallon for gas.   We have gone from no mortgage to two mortgages because income taxes were cutting so heavily into our income.  I am very concerned that my husband may pre-decease, me for I know I will receive absolutely no spousal survivor benefit from Social Security because of the Government Pension Offset - unless you call an estimated $45 a month a benefit from 45 years of employment.

Ironically, I am still contributing to Social Security – money that we will never see – because of part-time employment as a travel agent, a job I have held since I retired. 

The Windfall Elimination Provision and the Government Pension Offset are bad public policy and were passed under false assumptions. We're not talking about wealthy individuals. We're talking about teachers in 15 states and public employees - policeman, firefighters and federal employees - in all 50 states.  We’re talking about provisions that impact women more than men by an estimated 2 to 1 margin. 

We’re not asking to receive Social Security benefits for the earnings we made while contributing to a public pension system – that would be “double dipping.”   We are asking only for our fair share of benefits for which we or our spouses qualify because of earnings and contributions to Social Security.  No one questions the right of people with healthy private pensions to their full Social Security benefit –regardless of the amount of that private pension.  Why should public employees be penalized?

An argument against full repeal of the Social Security Offsets is cost – an estimated $70 billion at this time.  But the solution, in my opinion, is to significantly raise the cap on payroll earnings from the current $97,500 per year.  I can assure you that I would notice a more significant increase to my well being with an additional $400 per month than someone making $100,000 plus would notice paying FICA contributions a month or two longer into the calendar year.

The Social Security Fairness Act (S. 206 and H.R. 82) has strong bipartisan support.  The 110^th Congress has the opportunity to do the right thing for thousands of retired public employees across the United States by voting for full repeal of the Windfall Elimination Provision and the Government Pension Offset.