BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SJR 30|
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THIRD READING
Bill No: SJR 30
Author: Hancock (D), et al.
Amended: As introduced
Vote: 21
SUBJECT : Social security: retirement benefits: public
employees
SOURCE : California Retired Teachers Association
California Teachers Association
DIGEST : This resolution requests the President and the
Congress of the United States to enact the Social Security
Fairness Act of 2011, which would repeal the Government
Pension Offset and the Windfall Elimination Provision from
the Social Security Act.
ANALYSIS : Currently, the Social Security system applies
two penalties to California teachers who retire from the
State Teachers' Retirement System (CalSTRS).
The first penalty is the so-called Windfall Elimination
Provision which reduces the earned Social Security benefit
for those individuals who have both Social Security
retirement and a STRS retirement. This reduction can be
more than almost $400 per month of the Social Security
allowance.
The second penalty is the Government Pension Offset which
reduces the spousal Social Security benefits and the
widower's benefits for individuals who retire from STRS.
CONTINUED
SJR 30
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In many cases, the spousal benefit is reduced to zero.
Even more damaging is the frequent situation when the
Social Security spouse dies and the teacher spouse does not
even receive the Social Security death benefits as a widow
or widower.
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 8/15/12)
California Retired Teachers Association (co-source)
California Teachers Association (co-source)
ARGUMENTS IN SUPPORT : The proponents state this
resolution is a continuation of bipartisan legislation
urging repeal of two Social Security Penalties. The
Federal penalty repeal legislation, H.R. 1332 (McKeon and
Berman) as well as the U.S. Senate legislation, S 2010
(Kerry and Collins) is bipartisan. Last Session, AJR 10 by
Assembly Member Torlakson addressed this issue. The
Windfall Elimination Provision and the Government Pension
Offset reduce earned Social Security Benefits for
California's public school teachers, public safety
employees and other public employees. California will need
more than 100,000 new teachers in the next 10 years -
recruiting these teachers from the private sector will be
more difficult if the person will lose some of their earned
Social Security benefits. More than 90% of teachers
retiring will be hurt by these penalties. Fore retired
teachers affected by the penalties, they will lose some of
their own earned Social Security benefit and can lose 100%
of the survivor benefit - a 100% death tax.
DLW:k 8/15/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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