FOR IMMEDIATE RELEASE, Contact: (202) 225-9263
May 13, 1998
No. SS-16
Congressman Jim Bunning (R-KY), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold the ninth in a series of hearings on "The Future of Social Security for this Generation and the Next." At this hearing, the Subcommittee will examine the implications of proposals affecting Federal, State, and local government employees. These proposals include extending mandatory Social Security coverage to all newly hired State and local employees, and altering current law provisions affecting the Social Security benefits of persons who receive government pensions. The hearing will take place on Thursday, May 21, 1998, in room B-318 Rayburn House Office Building, beginning at 10:00 a.m.
In view of the limited time available to hear witnesses, oral testimony will be from invited witnesses only. Witnesses are expected to include Members of Congress, the U.S. General Accounting Office, Federal and State government employee representatives, and social insurance experts. However, any individual or organization may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
Numerous Social Security reform proposals include a provision to extend mandatory coverage to all newly hired State and local government employees. Social Security coverage has been expanded since Social Security's beginning. Workers in business and industry, then about 60 percent of the workforce, were the only persons covered in the initial Social Security Act of 1935. Over time, the program's coverage has grown to include the self-employed, nonprofit groups, agricultural and household workers, the Armed Services, Members of Congress, and all other Federal employees hired after 1983.
State and local governments were excluded altogether in the original Social Security Act of 1935 to avoid raising the possible constitutional questions of whether the Federal Government could tax State and local governments, and because many State and local government employees were already covered under other pension plans. Beginning in 1950, Congress amended the law several times to make participation in Social Security available on a voluntary basis to employees of State and local governments. In 1983, the State and local government option to terminate Social Security coverage was repealed and all State and local governments participating in the system were required to continue their participation. Beginning July 1, 1991, Social Security coverage was made mandatory for State and local government workers who do not participate in a retirement system for such employment.
The Social Security Administration estimates that 96 percent of the workforce, including 70 percent of State and local government workers, is now covered by Social Security and that about 4.9 million State and local government workers are not covered by Social Security. Seven States (California, Colorado, Illinois, Louisiana, Massachusetts, Ohio, and Texas) account for over 75 percent of non-covered payroll. Previous surveys have found that police, firefighters, and teachers are more likely to occupy non-covered positions.
Also impacting Federal, State, and local government employees are two current law provisions that reduce entitlement to Social Security benefits. These provisions, commonly known as the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP), were enacted in 1977 and 1983, respectively, in an attempt to provide Social Security benefits which are fair to all workers, whether they work in non-Social Security-covered government employment or in jobs under Social Security.
Since the enactment of the GPO and WEP, government workers have expressed concern that benefit reductions are imprecise and unfair. Legislative proposals have been introduced which modify the way benefits would be calculated.
In announcing the hearing, Chairman Bunning stated: "Most Americans are surprised to learn that not all workers are covered by Social Security. To many, covering those State and local government workers not covered under Social Security is an issue of simple fairness. Yet, changing the retirement systems of many of our teachers, firefighters, and police forces could have far reaching effects on these workers and the long-term financing of their retirement plans. These workers have devoted their careers to us, ensuring the safety and sound education of ourselves and our children. Their views are very important to this Subcommittee, and we need to listen and carefully consider what they have to say."
FOCUS OF THE HEARING:
The Subcommittee will receive views on proposals to extend mandatory Social Security coverage to all newly hired State and local government employees and altering current law provisions affecting the Social Security benefits of persons who receive government pensions.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Thursday, June 4, 1998, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Social Security office, room B-316 Rayburn House Office Building, at least one hour before the hearing begins.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press and the public during the course of a public hearing may be submitted in other forms.
The
Committee seeks to make its facilities accessible to persons with
disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event
(four business days notice is requested). Questions with regard to
special accommodation needs in general (including availability of
Committee materials in alternative formats) may be directed to the
Committee as noted above.