BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AJR 10
Lou Correa, Chair Hearing date: June 22, 2009
AJR 10 (Torlakson) as amended 5/18/09 FISCAL: NO
STRS BENEFITS: FEDERALLY MANDATED OFFSETS THAT REDUCE
MONTHLY ALLOWANCES
HISTORY :
Sponsor: California Federation of Teachers (CFT)
California Retired Teachers Association (CRTA)
California Teachers Association (CTA)
Prior legislation: SJR 15 (Dutton)
Resolution Chapter 62 of 2006
AJR 29 (Pavley)
Resolution Chapter 65 of 2003
AJR 3 (Leonard)
Resolution Chapter 66 of 2001
ASSEMBLY VOTES :
PER & SS 6-0 5/06/09
Assembly Floor 62-13 5/18/09
SUMMARY :
Would request that the President and Congress remove two
offset deductions that apply to teachers and other public
employees in the state.
BACKGROUND AND ANALYSIS :
1) Existing law , under the Social Security Act includes two
offsets, the Government Pension Offset (GPO) and the Windfall
Elimination Provision (WEP), that reduce the Social Security
benefits payable to persons who are entitled to benefits
under other public retirement systems.
David Felderstein
Date: 6/12/09 Page 1
2) This resolution :
a) requests the Congress of the United States to enact
legislation to remove the onerous effects of the GPO and
the WEP, and further, the Legislature of the State of
California requests President George W. Bush to support and
sign that legislation, and
b) requires that the Chief Clerk of the Assembly transmit
copies of this resolution to the President and Vice
President of the United States, to the Speaker of the House
of Representatives, the Majority Leader of the Senate, and
to each Senator and Representative from California in the
Congress of the United States.
FISCAL EFFECT :
None
COMMENTS :
1) Arguments in support
The committee is advised that when Social Security was
originally established in 1935, state and local governments
and their employees were prohibited from participating. Over
the years, federal laws were passed allowing these public
employees into the program. Many California jurisdictions
joined, including the State of California (1961, for all
current employees that elected to join, and for employees
hired after that date) except for the Highway Patrol,
firefighters and correctional officers. Other Californians
not participating in Social Security include all teachers ,
more than 450 cities, counties and special districts, judges
and the University of California.
Nationwide, more than a third of all teachers are not covered
under Social Security.
A majority of these non-covered teachers will be subject to
either the GPO or the WEP, or in some cases, both.
David Felderstein
Date: 6/12/09 Page 2
According to the sponsor, these provisions are not only
harmful to retirees but are also impacting the state's
ability to recruit and retain teachers. As pointed out in
the Resolution, California has a significant teacher shortage
and requires more than 16,000 new teachers per year to meet
enrollment growth needs as well as retirement replacement.
The application of these provisions can have a severe impact
on the financial security of retirees who have spent some
portion of their working lives serving the public as
teachers, police officers, fire fighters, Social Security's
own employees, Congressional staff, and many other federal,
state, and local government workers.
Simply stated, if a person's own Social Security is reduced,
it is because of WEP; if the benefit being reduced is based
on a husband or wife's Social Security benefit, it is because
of GPO.
2) SUPPORT :
American Federation of State, County and Municipal
(AFSCME)
American Federation of State, County and Municipal, Local
685 (AFSCME)
Association of California School Administrators (ACSA)
Association for Los Angeles Deputy Sheriffs (ALADS)
CalPERS Board of Administration
California Professional Firefighters (CPF)
California School Boards Association (CSBA)
California School Employees Association
California State Employees Association (CSEA)
CalSTRS Board of Administration
Faculty Association of California Community Colleges
(FACCC)
Glendale City Employees Association
Los Angeles County Probation Officers' Union
Los Angeles County Sheriff, Lee Baca
Los Angeles Police Protective League
Orange County Employees Association (OCEA)
Orange County Professional Firefighters' Association
Organization of SMUD Employees
David Felderstein
Date: 6/12/09 Page 3
Peace Officers Research Association of California (PORAC)
Retired Public Employees Association (RPEA)
Riverside Sheriffs' Association
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Rosa City Employees Association
3) OPPOSITION :
None to date
#####
David Felderstein
Date: 6/12/09 Page 4