Coalition to Preserve Retirement Security
www.retirementsecurity.org
The Arguments for Mandatory Coverage • Universality --- “Everyone should participate.” • Fairness --- “Most will collect a benefit from other employment.” • Solvency --- “Additional revenue will extend the life of Social Security.” • Employee Benefit --- “Social Security will provide essential benefits for public workers.” • Necessary Safety Net --- “The public sector DB plans are at risk.”
Bowles-Simpson Deficit Reduction Report …a small share of states and localities exclude their employees from Social Security and instead maintain separate retirement systems. As states face a
double hardship of prolonged fiscal challenges and an aging workforce, relying entirely on this pension model has become riskier for both government sponsors and for program participants, and a potential future bailout risk for the federal government. To mitigate this risk and to plan for an orderly transition to comprehensive Social Security coverage, the
Commission proposes to mandate coverage for all state and local workers newly hired after 2020.
The Impact of Mandatory Coverage on State and Local Budgets Center for Retirement Research at Boston College • Equity – Social Security legacy costs • Employee Benefits – Portability, disability and dependent benefits • “Trivial” Impact on State and Local Budgets
Government Pension Offset (GPO) Windfall Elimination Provision (WEP) • GPO – www.ssa.gov/pubs/10007.pdf • WEP – www.ssa.gov/pubs/10045.pdf • Repeal Legislation – – Unsuccessful attempts for nearly 30 years – 128 Co-Sponsors (324 out of 435 Members in 2007)
• Reform Legislation – But what?
Coalition to Preserve Retirement Security
www.retirementsecurity.org
Questions or More Information:
Coalition to Preserve Retirement Security c/o Lussier, Gregor, Vienna & Associates 703.684.5236
[email protected]
www.retirementsecurity.org
