BILL ANALYSIS Ó
SJR 1
Page 1
Date of Hearing: June 24, 2015
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL
SECURITY
Rob Bonta, Chair
SJR
1 (Beall) - As Amended January 12, 2015
SENATE VOTE: 33-5
SUBJECT: Social security: retirement benefits: public
employees.
SUMMARY: Requests Congress to pass, and President Barack Obama
to sign, legislation repealing the Social Security Act's
Windfall Elimination Provision and Government Pension Offset.
Specifically, this resolution:
1)Requests that the Congress of the U.S. pass legislation
repealing the Government Pension Offset (GPO) and the Windfall
Elimination Provisions (WEP) from the Social Security Act.
2)Specifies that the Legislature of the State of California
further requests President Barack Obama to sign that
legislation.
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3)Requires that the Secretary of the Senate transmit copies of
this resolution to the President and Vice President of the
U.S., to the Speaker of the House of Representatives, the
Majority Leader of the Senate, and each Senator and
Representative from California in the Congress of the U.S.,
and to the author.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: Under federal law, state and local public employees
who work for an employer in a position not coordinated with
Social Security and who receive a government pension upon
retirement may be affected by two federal offsets to their
Social Security benefits.
The WEP affects individuals who earn a pension in any job where
the person did not pay into Social Security and also worked in
other jobs long enough to qualify for a Social Security
retirement or disability benefit for those jobs. Depending on
how many years of qualifying substantial earnings the individual
has in Social Security, the WEP results in a pro rata reduction
of 40% to 90% of one of the three factors used in determining
the average monthly earnings upon which the Social Security
benefit is based.
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The GPO affects individuals who earn a government pension based
on work where the employee did not pay into Social Security but
who are also eligible for Social Security dependent's benefits
(i.e., benefits based on a spouse's Social Security benefit or
as the widow or widower of an eligible Social Security benefit
recipient). The GPO reduces the dependent's Social Security
spouse/widow/widower benefit by two-thirds of the amount of the
individual's government pension.
In California, the WEP and the GPO primarily impact teachers and
public safety officers who begin their careers in the private
sector and earn enough qualifying quarters to receive a Social
Security benefit but then switch mid-career to become, for
example, a teacher in a public school or a safety officer in a
job with a state or local government employer not coordinated
with Social Security. Many do not learn of the consequences to
their Social Security benefits until they apply to begin
receiving Social Security benefits.
Numerous other resolutions have been adopted by the California
legislature in the past to encourage Congress and the President
to eliminate, or limit the application of, the Social Security
offsets. These include: SJR 30 (Hancock), Resolution Chapter
126, Statutes of 2012, AJR 10 (Torlakson), Chapter 103, Statues
of 2009; AJR 5 (Hernandez), Chapter 116, Statutes of 2007; SJR
15 (Dutton), Chapter 62, Statutes of 2006; AJR 29 (Pavley),
Chapter 65, Statutes of 2003; AJR 3 (Leonard), Chapter 66,
Statutes of 2001; and, SJR 4 (Soto), Chapter 94, Statutes of
2001.
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REGISTERED SUPPORT / OPPOSITION:
Support
Association of California School Administrators (Co-Sponsor)
California Retired Teachers Association (Co-Sponsor)
California Teachers Association (Co-Sponsor)
Faculty Association of California Community Colleges
(Co-Sponsor)
American Federation of State, County and Municipal Employees,
Local 685
Association for Los Angeles Deputy Sheriffs
CAL FIRE, Local 2881
California Association of Highway Patrolmen
California State Firefighters' Association
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California State Lodge, Fraternal Order of Police
California State Retirees
California State Teachers Retirement System
California Teachers Association
Long Beach Police Officers Association
Los Angeles County Employees Retirement Association
Los Angeles County Professional Peace Officers Association
Los Angeles Police Protective League
Los Angeles Probation Officers Union
Organization of SMUD Employees
Retired Public Employees Association
Riverside Sheriffs Association
Sacramento County Deputy Sheriffs' Association
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San Bernardino Public Employees Association
San Diego County Court Employees Association
San Luis Obispo County Employees Association
Santa Ana Police Officers Association
Opposition
None on file
Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916)
319-3957