The Windfall Elimination Provision August 28 at 3:00 PM/ET The Windfall Elimination Provision (WEP) reduces the monthly Social Security benefits of public employees who also earn a pension
The Windfall Elimination Provision
August 28 at 3:00 PM/ET
The Windfall Elimination Provision (WEP) reduces the monthly Social Security benefits of public employees who also earn a pension from employment not covered by Social Security. It does so based on an arbitrary standard formula that does not reflect individual circumstances.
Congressman Kevin Brady (R-TX), the top Republican on the House Ways and Means Committee and its former Chairman, has been a long-time proponent of reforming the WEP, and he introduced his latest attempt to do so on July 24. His new legislation, H.R. 3934, would permanently repeal the existing WEP formula and replace it with a new “proportional” approach.
This new WEP formula would reflect all past earnings, including earnings in employment that was not covered under the OASDI program. In this way, beneficiaries will receive a Social Security benefit that reflects the replacement rate applicable for a worker covered by Social Security with the same career earnings. Brady’s new bill would also provide for a rebate payment starting in 2022 for individuals 60 and older in 2019 affected by the current WEP.
There are a lot of moving parts to this legislation, and there has been concern in the past that earlier reform proposals could create both losers, as well as winners. Therefore, NCTR wanted to be sure that our members fully understand what this new proposal would – and wouldn’t – do.
And who better to help with this task than one of the top drafters of the bill, Amy Shuart. Amy is Republican Staff Director for the House Ways and Means Committee’s Subcommittee on Social Security, and she will be joining Leigh Snell, NCTR’s Director of Federal Relations, in a special webinar on Wednesday, August 28, at 3:00 PM/ET to explain the new legislation, how it will work if adopted, and the next steps in that legislative process.
If your plan participants and retirees are impacted by the WEP, or could be, you will not want to miss this! So register now, as attendance is limited.