Effort to Repeal WEP Continues

If you plan to retire from an institution that does not participate in the Social Security system, but are otherwise entitled to Social Security due to other employment, the Windfall Elimination Provision (WEP) can significantly reduce the amount of your pension.

Decades ago, Texas decided to allow local governments, including independent school districts and community colleges, to opt out of the Social Security system. If your school participates in Social Security, with its required payroll deductions, you should not be affected if you retire from your institution. It can get complicated for a recent hire who retires. The only definitive source to rely upon is the Social Security Administration. Be sure to mention the WEP when consulting with a local SSA office, as a mistake can be expensive later.

Here is background information on WEP.

The most recent effort to repeal WEP is known as the Equal Treatment of Public Servants Act, introduced by U.S. Rep. Kevin Brady (R-The Woodlands). Rep. Brady is chair of the U.S. House Ways and Means Committee, the panel most crucial to the WEP issue. So far such efforts have failed but sponsors continue to urge repeal.

Based on past experience, success will be difficult, given the present budget deficit, plus the fact that WEP applies only in 15 “non-mandatory” states, in which school and college districts opted (in most cases many years ago) not to participate in Social Security. In other words, elected officials from 35 states may not see repeal as a priority.

The effort to repeal WEP does not address the Government Pension Offset (GPO), which affects spousal benefits. Here is information on the GPO.

If you would like pertinent talking points regarding the unfairness of the WEP, here is a useful link from the Way and Means Committee. It might be most effective to cite this official source when communicating with U.S. Representatives or Senators.

Here is a link to find out  “Who Represents Me?