Sponsored by:
Assemblywoman BARBARA MCCANN STAMATO
District 31 (Hudson)
Assemblyman REGINALD W. ATKINS
District 20 (Union)
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Urges Congress and President enact Social Security Fairness Act.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging Congress and the President of the United States to enact the Social Security Fairness Act.
Whereas, The "Social Security Fairness Act," currently pending in Congress, aims to repeal two provisions of the Social Security Act, the government pension offset (GPO) and the windfall elimination provision (WEP), that reduce the Social Security benefits payable to persons who under certain conditions are entitled to benefits from public retirement systems; and
Whereas, Social Security is the foundation for retirement income for tens of millions of American workers and their families; and
Whereas, Nearly two-thirds of older Americans who receive program benefits rely on Social Security for 50 percent or more of their total income, and one-third rely on it for 90 percent or more; and
Whereas, Among beneficiaries aged 80 and older 42 percent rely on Social Security for nearly all of their income; and
Whereas, The GPO, enacted in 1977, and the WEP, enacted in 1983, severely and unfairly penalize recipients of certain public pensions; and
Whereas, Until 2005, there were no requirements that a public employer advise new employees that they would be subject to these penalties; and
Whereas, According to the Congressional Research Service, the GPO effectively prohibits 4,126 New Jersey retirees from collecting both their pension and full Social Security benefits; and
Whereas, An estimated 9 out of 10 public employees affected by the GPO lose their entire spousal benefit, even though their spouse paid Social Security taxes for many years; and
Whereas, According to the Congressional Research Service, the WEP reduces the Social Security benefit for 22,689 New Jersey retirees who did not participate in Social Security while working for certain governmental entities, but who at some time in their careers were in jobs where they paid Social Security taxes for the period required to qualify for retirement benefits; and
Whereas, The WEP can deprive a New Jersey retiree of nearly $587 per month in Social Security benefits duly earned by that individual; and
Whereas, These provisions penalize individuals and retirees in the Police and Firemen's Retirement System of New Jersey and some local retirement systems who did not participate in Social Security and dedicated their lives to public service on behalf of the State and local governments; and
Whereas, The provisions of the GPO and WEP cause first responders and certain local governmental employees in New Jersey to prematurely retire and discourage qualified individuals from entering into government service; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully urges the United States Congress and the President of the United States to enact the "Social Security Fairness Act."
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President and the Vice President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of the United States Congress elected from this State.
STATEMENT
This resolution urges Congress and the President of the United States to enact the "Social Security Fairness Act," currently pending in Congress.
Many of New Jersey's law enforcement officers, firefighters, and certain local governmental employees are unfairly penalized by Social Security offsets that reduce or eliminate the earned Social Security benefits of these employees or their spouses.
Social Security was enacted in 1935. Initially, state and local governments and their employees were prohibited from participating. Over the years, federal laws were passed allowing these employers and employees the opportunity to elect to join the program. Most public employees in New Jersey retirement systems contribute to Social Security with the exception of law enforcement officers, firefighters, correctional officers, and others in certain local retirement systems.
The windfall elimination provision (WEP) reduces benefits that were paid for as part of the Social Security payroll tax. The WEP can lead to a significant reduction of the Social Security benefit and can deprive a retiree of up to $587 per month of the Social Security that was earned and paid. The survivor benefit was paid for by the Social Security earner as part of the Social Security payroll tax. The survivor benefit was created to ensure the surviving spouse was not left without adequate financial support. The government pension offset (GPO) eliminates the survivor benefit even with a modest public pension.
These provisions cause first responders and certain local governmental employees to prematurely retire and discourage qualified individuals from entering into government service. The Social Security Fairness Act would repeal these provisions.