Pension offset bill back before Congress

A bill reintroduced this week aims to reduce the government pension offset on Social Security benefits. Under current law, when a government retiree who was not covered by Social Security is eligible for a Social Security spousal benefit, that benefit is reduced by two-thirds of the survivor's government pension. The Government Pension Offset Act (S. 611) sponsored by Sen. Barbara Mikulski, D-Md., would not require a two-thirds offset unless the combined amount of the pension plus the Social Security spousal benefit exceeds $1,200. Mikulski introduced similar bills in 1997 and 1999. "This is a harsh and heartless law that penalizes men and women who have worked hard and played by the rules," Mikulski said. The government pension offset, which Congress passed in 1977, affects Social Security spousal benefits of retirees covered under the Civil Service Retirement System. Spousal benefits are intended for people who are financially dependent on their husbands or wives. But the way Social Security law was written before 1977, people who received CSRS pensions also qualified for full spousal benefits. According to Mikulski, an estimated 305,000 Americans are affected by the pension offset, with the number increasing by 15,000 annually. "Couples who counted on Social Security benefits for a surviving spouse find that those benefits are not there for the survivor," Mikulski said. "My bill will correct this rule that unfairly penalizes people who worked in government service." In testimony last year, Rep. William Jefferson, D-La., estimated that the proposal would cost $300 million a year--$1.7 billion over five years and $4.4 billion over 10 years. Jefferson introduced H.R. 664, the House version of Mikulski's bill, earlier this month.