![]() The group already offered their support of this bill, releasing a statement to say they wanted to “express support for – and thank you for preparing to introduce – the Public Servants Protection and Fairness Act of 2021.” While there may still be roadblocks to The Public Servants Protection and Fairness Act of 2021, objections from NARFE won’t be one of them. Ultimately, the House Committee on Ways and Means postponed its consideration of that proposal due to concerns raised by the 175,000-member National Active and Retired Federal Employees Association (also known as NARFE). ![]() The closest any WEP reform legislation has gotten in the past few years was when Representatives Kevin Brady (R-TX) and Richard Neal (D-MA) co-sponsored the Equal Treatment of Public Servants Act of 2015 (H.R. Once the election is over, however, the bills struggle to get the necessary traction and bipartisan support for passage. The topic of WEP repeal or reform makes for good election-year campaign speeches. In the past, most of the reform bills died a fairly quick death. ![]() This is certainly not the first serious effort to reform the WEP, but this could have a better chance of success than its predecessors. The much-needed reforms in this bill provide meaningful WEP relief to current retirees and public employees while treating all workers fairly.” However, in practice, it unfairly penalizes many public employees. “Originally, the WEP was intended to equalize the Social Security benefit formula for workers with similar earnings histories, both inside and outside of the Social Security system. ![]() In a press release, Representative Neal explained why he introduced a new piece of legislation to repeal the existing Windfall Elimination Provision: What the Windfall Elimination Provision Repeal Looks Like Now Teachers are one of the most common groups to be impacted by this rule, but it often includes other public sector workers like firefighters, police officers, and numerous other state, county, and local employees. They worked at another job where they qualified for Social Security benefits.They qualified for a pension from that job, and.They did not pay Social Security taxes, a nd.The WEP rule reduces Social Security benefits for those who worked in a job in which: Understanding the Windfall Elimination Provision As Is Today To better understand the legislation on the table and how it would impact your Social Security benefits, it helps to start with a quick recap of how the WEP works today, what would change, and why reform has been a long time coming. It’s past time for this outdated rule to be reformed. T here’s no reason we need to keep going this way. They cannot explain it adequately, and although they may be trying to help, too often only add to the confusion. Furthermore, most Social Security technicians – let alone financial advisors – fail to understand the nuances of how the WEP is applied. Although it’s not widely known, the annual Social Security benefit estimate does not include the WEP penalty in the estimated benefit. Repealing the WEP with a new formula should help ease the difficulty that individuals with noncovered pensions face when planning for retirement. The goal of this Act is to provide an equitable Social Security formula for individuals with noncovered employment and to provide relief for individuals currently affected by Social Security’s Windfall Elimination Provision (also known as the WEP). But now that the balance of power has shifted in both houses of Congress, this proposal has a much higher likelihood of passage. This legislation was originally presented to Congress in 2019, but died without receiving a vote. In April of 2021, Ways and Means Committee Chairman Richard Neal, (D-Mass.), reintroduced the Public Servants Protection and Fairness Act of 2021.
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