Washington, DC - During the month of May – Older Americans Month – many in Congress have paid tribute to the accomplishments of our seniors. Their wisdom, experience and service to their communities reflect the character of our Nation. During this month, we honor our seniors and thank them for the lessons they teach us and the strong values they instill in our families and communities throughout the country.

 

Yet as we recall all that our seniors have done for us, many seniors, particularly those retirees who have dedicated their lives to public service, are suffering. Due to the way Social Security payments are calculated, those who work in public service such as firefighters, police officers, teachers, secretaries, school cafeteria workers, teacher's aides and others receive a smaller Social Security benefit than those in the private sector. They are the men and women who are unfairly and negatively affected by the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP).

 

These two provisions have a direct effect on public service retirees and their spouses. Generally, Social Security benefits are payable to the spouses of retired, disabled or deceased workers covered by Social Security.  However, the spousal benefit of a person who receives a pension from government employment (federal, state or local) that was not covered by Social Security is reduced by a provision known as the Government Pension Offset.  The GPO reduction in Social Security benefits is equal to roughly two-thirds of a government pension.  To better understand the devastating effect of the GPO consider, for example, a widow who retired from the federal government and receives a $600 monthly pension and is also entitled to a widow’s survivor benefit (under Social Security) of $400 a month.  But, instead of receiving $1000 a month, she only receives $600 a month. As of December 2002, nearly 376,000 people were affected by the GPO and nearly 73 percent of those affected were women. Overall, it is estimated that as a result of the GPO, men receive about $276 less per month in benefits.  Women are hit even harder and receive about $391 less per month (CRS, May 2003).

 

Likewise, the WEP reduces the Social Security benefits of workers who also have pension benefits from employment not covered by Social Security. The original goal of the Windfall Elimination Provision was to remove an unintended advantage to those who worked for a short period of time in Social Security-covered employment and those who had larger amounts of income from non-Social Security-covered pensions. However, the current formula cannot differentiate between those who have low-paid jobs in public service and those who worked in Social Security-covered jobs over their entire careers.  As a result, many who worked in public service are adversely affected. In December 2002, the Social Security Administration estimated that 635,000 recipients are penalized by the WEP. The reduction hits those who have smaller pensions exceptionally hard and often pushes the income of many public service retirees below the poverty line.

 

Public service is vital to the American character, and those who devote themselves to public service truly are the ambassadors of our communities.  Unfortunately, unless we take steps to enact meaningful pension reform there is a risk that men and women won’t pursue these or other public service professions in the future.  

 

This year, I have joined forces with Congressman Buck McKeon of California and more than 200 Members of Congress to co-sponsor the Social Security Fairness Act of 2003 (HR 594). The legislation would repeal the Government Pension Offset and Windfall Elimination Provisions that have ravaged benefits for retired public employees. The Social Security Fairness Act has been referred to the House Ways and Means Committee where it awaits further action.

 

In addition to working to correct the pension offset problem, Congress is also turning an increasing amount of attention to the challenges facing Medicare – particularly the need for a prescription drug benefit.  In Congress, I have spent the last several years working to increase the availability and affordability of health care and prescription drugs. We have been successful in doing some things to make the Medicare system more effective by offering preventative services like colorectal and mammography screenings. However, we are a long way from solving some of the more pressing health care needs -- like how to reduce the high cost of prescription drugs for seniors throughout the country and across Southern Missouri.

 

Last year, the average Medicare beneficiary was spending $942 a year on prescription drugs. Because today's Medicare was built for yesterday's medical care, Medicare has not kept pace with new medical advances and cost-effective treatments using prescription drugs. Comprehensive reform is critical and this month as well as next, we’ll be looking for workable solutions to this growing problem.

 

A few weeks ago in a tribute to Older Americans Month, President George W. Bush noted that “As these individuals continue to work on our behalf, our Nation is working to fulfill our obligations to older Americans by providing them with good health care and other services to enhance their lives.”  We can enhance their lives by addressing the pension offset and prescription drug challenges facing our seniors. Doing so is an excellent way to show our seniors just how much we value them and all that they have done for us.