FOR IMMEDIATE RELEASE, Contact: (202) 225-9263
June 20, 2000
No. SS-19
Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on the Social Security Government Pension Offset (GPO). The hearing will take place on Tuesday, June 27, 2000, 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 at this hearing will be from invited witnesses only. Witnesses are expected to include representatives from the Social Security Administration, the Congressional Budget Office, and Federal and State government employee associations. 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:
Many Federal, State, and local government employees are affected by a provision commonly known as the GPO which reduces their Social Security spouse benefit. The GPO was created in 1977 to address a perceived inequity in the law between the treatment of government workers and those covered by Social Security.
Social Security pays retirement benefits to workers who pay into the system throughout their careers. It also pays spouse benefits to their husbands and wives. As a result, some married workers may qualify for two Social Security benefits: (1) a retirement benefit based on their own work, and (2) a spouse benefit based on the other spouse's work. However, Social Security will not pay both benefits in full. Instead, the spouse benefit is offset by the full amount of the retirement benefit. The rationale behind this "dual entitlement rule" is that spouse benefits are intended to provide a safety net to those who are financially dependent on their husbands or wives.
Prior to 1977, government workers who paid nothing (or little) into Social Security could receive a full government pension plus a full spouse benefit from Social Security. In contrast, private-sector workers who paid into Social Security had their spouse benefits reduced or eliminated because of the dual entitlement rule. The GPO was created in 1977 to help address this situation. Under the GPO, a worker's Social Security spouse benefit is reduced by two-thirds of the value of his or her government pension. This attempts to equalize the treatment between government workers and private-sector workers. However, many government employees believe the provision is unfair and arbitrary. Legislative proposals have been introduced which would modify the way benefits are calculated for those affected by the GPO.
In announcing the hearing, Chairman Shaw stated: "Workers who pay into Social Security are entitled to benefits for their spouses. However, spouse benefits are designed for husbands and wives who are financially dependent on the other spouse because they don't have pensions of their own. The government pension offset was initially created to address these somewhat conflicting principles. We now need to determine whether it should be changed to improve the fairness of the Social Security program."
FOCUS OF THE HEARING:
The hearing will focus on why the government pension offset was created, how it works, and suggestions for modification. The hearing will also discuss how modifications to the provision would affect the budget and the solvency of the Social Security Trust Funds.
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 or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, July 11, 2000, 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, by close of business the day before the hearing.
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 or MS Word 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.