Two lawmakers last week introduced legislation to provide more money to federal retirees who are eligible for a Social Security spousal benefit.
The Government Pension Offset reduces the amount of Social Security spousal benefits federal retirees receive by two-thirds of the amount of their government pension. The offset affects federal retirees enrolled in the Civil Service Retirement System. For example, if a CSRS retiree receives a monthly pension of $600, their Social Security spousal benefits are reduced by $400 a month.
"This is a harsh, heartless rule of government that penalizes people who have worked hard and played by the rules," said Sen. Barbara Mikulski, D-Md.
Mikulski introduced the Government Pension Offset Act (S. 717) on Thursday. Her bill would exempt people whose monthly pension and Social Security spousal benefit checks total less than $1,200 from the offset.
Rep. William Jefferson, D-La., introduced a similar bill (H.R. 1217) in the House on Tuesday.
Proponents of the offset argue that Social Security spousal benefits are meant for spouses who have no retirement income of their own because they are, or were, dependent on their husbands or wives. Eliminating the offset creates an unfair windfall for people who receive government pensions, proponents say.
Both Jefferson and Mikulski contend that the offset is unfair, particularly to lower-income retirees.
"While Social Security benefits of spouses or surviving spouses earning government pensions are reduced by $2 for every $3 earned, Social Security benefits of spouses and surviving spouses earning private pensions are not subject to the offset at all," Jefferson said on the House floor Wednesday. "If retirees on private pensions do not have Social Security benefits subject to offset, why should retirees who work in the public service system?"
Jefferson and Mikulski introduced similar bills in the last Congress, but did not gain enough support to get either the House or Senate to pass them.
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