Legislation
|December 21, 2024
After decades of lobbying by Maine’s public employees and their unions, Congress votes to repeal the Social Security Offsets
The Social Security Fairness Act now goes to President Joe Biden so he can sign it into law; enactment would repeal two federal laws: the Windfall Elimination Provision and the Government Pension Offset
In a historic vote that will strengthen the retirement security of millions of workers throughout the United States, including tens of thousands of Mainers, the U.S. Senate today followed the lead of the U.S. House of Representatives in voting to repeal two unfair federal laws that penalize workers for pursuing careers in public service. With the passage of The Social Security Fairness Act (H.R 82/S.597) by both chambers of Congress, the legislation now goes to President Biden’s desk so he can sign it into law.
“After just over four decades of the Windfall Elimination Provision (WEP) and nearly five decades of the Government Pension Offset (GPO), both of which have robbed public workers of their much-deserved full Social Security benefits, the U.S. Senate today finally passed S.597. Passage of this legislation is the result of a long and arduous fight by labor unions and rank-and-file union members for years,” said Steve Butterfield of Hallowell, who serves as a retiree director on the board of directors of the Maine Service Employees Association, Local 1989 of the Service Employees International Union (MSEA-SEIU Local 1989). The labor union represents thousands of Maine workers impacted by the WEP and GPO, known collectively as the Social Security Offsets. MSEA members and their union for decades have been advocating for the repeal of the offsets.
Butterfield said that once President Biden signs The Social Security Fairness Act into law, which he is expected to do, “Public sector workers can now enjoy the full benefit of the Social Security benefits that they have paid for through their work careers but have never been able to enjoy. These benefits will aid all retired public sector workers to have a better lifestyle. Thank you to the U.S. Senate and the U.S. House of Representatives for recognizing this long-term injustice and bringing it to an end.”
Caribou resident Ginette Rivard worked for nearly 25 years in the children’s behavioral health unit for the Maine Department of Health and Human Services in Caribou and served as president of MSEA-SEIU Local 1989 from 2011 to 2015. “Passage of the Social Security Fairness Act is a game changer,” said Rivard, who serves as chair of the MSEA-SEIU Retirees Steering Committee. “Between the GPO and the WEP, I have been receiving about a third of what I would have been otherwise eligible had I worked in the private sector. Repealing these provisions will enable me to live my retirement years with the assurance that I can meet my living expenses. Senator Collins has long understood the impact these unfair provisions have on so many, and I deeply appreciate her sponsoring this legislation.”
Penny Whitney-Asdourian, a retiree from Scarborough, worked for over 33 years for the Judicial Branch of Maine State Government. She said she and her husband, a retired firefighter, have been hit hard by the Windfall Elimination Provision. They are thrilled that The Social Security Fairness Act passed in both chambers of Congress.
“We have been losing over $1,000 a month in Social Security benefits due to the Windfall Elimination Provision,” Whitney-Asdourian said. “While an extra $12,000 a year may not sound like a lot to many people, it certainly is a lot of money to us. It would pay our property taxes, our homeowners’ insurance, and make a huge dent in our heating expenses during the Maine winters. For many retirees, especially older retirees who have been retired for many years, getting the Social Security retirement benefits that they paid into can mean the end to food and fuel insecurity. I cannot think of a better way to care for our seniors.”
Added Whitney-Asdourian, “This vote (by the U.S. Senate) provides some critical financial relief to millions of retired public safety workers, teachers and public service workers across this great nation. For years, these retirees have been penalized for their choice for a career in public service, rather than the private sector, but who have also qualified for Social Security benefits. The bipartisan support for this bill was amazing, and I hope the Senators and members of the U.S. House of Representatives who voted to repeal the Social Security Offsets realize that the prayers of many public pension recipients have finally been realized.”
Another retiree, Tony Gonzales of Milo, worked for the Maine Department of Transportation for 25 years, retiring in 2018. Prior to that, he worked for 20 years in the private sector, where he paid into the Social Security system.
“In April of 2018, my Social Security benefits statement said I would receive $1,000 a month, Gonzales said. However, “when I retired, I was informed that because of the Windfall Elimination Provision, I would receive 40% of the $1,000 a month that I paid for — $400 instead of $1,000! I have paid a $600 monthly penalty now for going on seven years. I pay close attention to my expenses as they rise at multiples of what my income does. I heat my home with wood, getting up in the night to feed the boiler, heat pumps and very little oil. The $600 a month that I paid for but that I currently don’t get would make my life easier.”
Continuing, Gonzales said, “I would like to thank all of the people involved for doing what’s right and passing S.597. That is the right thing to do. Thank you again for righting this wrong. I only want the benefit I paid for.”
MSEA-SEIU Local 1989 and their international union, the Service Employees International Union, have strongly supported repealing the Social Security Offsets so that public employees could begin collecting the Social Security benefits they earned. Both the WEP and GPO have been robbing public service workers and their spouses of retirement benefits they earned:
- The WEP changes the formula used to calculate benefit amounts that retirees earned while working in a system covered by Social Security; the WEP affects people who earned a pension working for a government agency and also worked at jobs where they paid Social Security taxes long enough to qualify for retirement or disability benefits. The WEP thus has chipped away at the retirement benefits of a retiree who worked both in the private and public sectors. Over 21,000 Maine workers are penalized by the WEP, according to a Congressional Research Service report dated Feb. 28, 2024.
- The GPO reduces public employees’ Social Security or survivor benefits by an amount equal to two-thirds of their public pensions. As a result, the GPO sharply reduces – and in most cases eliminates – the Social Security spousal benefit for workers who receive public pensions, even though their deceased spouse paid Social Security taxes for many years. Over 8,000 Mainers were penalized by the GPO as of December 2023, according to a report by the National Active and Retired Federal Employees Association.
“This is a great day for workers in Maine and throughout our nation,” MSEA-SEIU President Mark Brunton said of the U.S. Senate’s passage of The Social Security Fairness Act. “The members of MSEA are extremely grateful to Maine’s entire congressional delegation – Senators Angus King and Susan Collins, Congresswoman Chellie Pingree and Congressman Jared Golden – for supporting the repeal of the Social Security Offsets. Millions of current and future retirees will stand a better chance of achieving retirement security with the passage of The Social Security Fairness Act. We urge President Biden to sign it into law right away so that everyone can finally start receiving the Social Security benefits they have earned.”
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The Maine Service Employees Association, Local 1989 of the Service Employees International Union, represents over 13,000 Maine workers, including workers in all three branches of Maine State Government and other public workers impacted by the Social Security Offsets.