Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
NPPC News
Millions of public servants face unfair cuts to their Social Security benefits because of outdated policies like WEP & GPO. Learn how these provisions hurt retirees and how you can fight for change in our latest blog, Understanding WEP and GPO: Why We Must Act Now.
Senate next to act on the Social Security Fairness Act
With only six weeks left for U.S. legislators to pass bi-partisan initiatives, all eyes are on the Senate now that the Social Security Fairness Act has passed the House. The effort to repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)–two federal provisions that unfairly penalize public workers by revoking their access to earned Social Security benefits–has 62 bipartisan Senate sponsors, which exceeds the 60 votes required to ensure the bill passes.
Holding the bill back is the estimated $190 million projected price tag attached to the legislation. Bill authors Congressman Garret Graves (R-LA) and Congresswoman Abigail Spanberger (D-VA) said in a joint statement, “The long-term solvency of Social Security is an issue that Congress must address — but an issue that is wholly separate from allowing Virginians, Louisianans, and Americans across our country who did their part and contributed their earnings to retire with dignity.”
Senate leadership must bring the bill to a vote before December 31, 2024.
Kansas Tier 3 Needs Fixing–Will Lawmakers Heed the Call?
As COVID-19 funds begin to dwindle, states are debating how to distribute budget surplus dollars, including Kansas, where one lawmaker wants to dedicate $1 billion toward pension debt.
On Wednesday, Senator Michael Fagg attempted to persuade the Legislature’s joint committee on pensions to address the system’s unfunded liability with the payment, which would reduce the current $9.7 billion deficit by more than 10%. This move, which is right out of pension-opponent Reason Foundation’s pension reform playbook, did not find universal support amongst committee members.
Senator Pat Pettey suggested using the excess revenue to enhance the KPERS 3 retirement plan benefits. “I cannot support this recommendation because I think we have to look at the whole picture,” she said. “We can’t underestimate the senior tsunami that is facing us.”
The pension committee voted to recommend a study on the benefits of an additional payment to lower the unfunded liability and ask the Legislature to consider altering KPERS 3 and giving KPERS’ retirees a cost-of-living adjustment.
New Hampshire Fire Departments Struggle to Keep Staff
Career firefighters are becoming rare in New Hampshire, and small departments throughout the state are feeling the pinch the most. Leaders in the public safety community point to the lack of retirement benefits as one of the main reasons for widespread vacancies.
“Every fire department in the state has staffing issues because of the lack of qualified candidates,” said Barnstead Fire Chief Alfred Poulin. Poulin said the legislative changes to the pension system in 2011, which reduced benefits, are partly to blame. New hires don’t have access to the same retirement benefits as previous hires, reducing interest among young potential firefighters.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.