
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p>The Social Security Administration says it is speeding up implementation of the Social Security Fairness Act, issuing back payments and recalculating benefits for those previously affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) sooner than initially announced.</p>



<p>After President Joe Biden signed the Social Security Fairness Act into law, the Social Security Administration (SSA) said it was facing a shortage of staff and funding as it worked to recalculate benefits for the millions of Americans whose benefits had been reduced by WEP and GPO. At that time, SSA said implementation <a href="https://www.copera.org/pera-on-the-issues/social-security-fairness-act-rollout-could-take-a-year-or-more" target="_blank" rel="noreferrer noopener">could take a year or more</a> due to manual processing of accounts.</p>



<p>In late February, SSA said <a href="https://www.ssa.gov/news/press/releases/2025/#2025-02-25-a" target="_blank" rel="noreferrer noopener">it had set up an automated process</a> to handle most accounts, allowing the agency to speed up processing. The agency said it was “immediately” beginning to issue retroactive payments to reflect higher benefit amounts going back to January 2024.</p>



<p>Retirees and other beneficiaries can expect to see a lump sum payment deposited directly into the bank account on file with SSA by the end of March, SSA said. New monthly benefit amounts will go into effect with benefits paid in April.</p>



<p>It’s important to note the Social Security Fairness Act does not affect Colorado PERA retirement benefits. PERA members or retirees with questions about how the law affects them should contact the Social Security Administration directly.</p>



<p><strong>LEARN MORE:</strong> <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a></p>



<p>Affected beneficiaries will receive a letter from SSA explaining any change in benefits, but that letter may arrive after the lump sum for back payments, according to SSA.</p>



<p>The agency said it would have to manually process accounts that have a high level of complexity and those without a bank account on file, which will take additional time. That means not everyone will see their retroactive payments or new benefit amounts right away.</p>



<p>In addition to recalculating benefits, SSA is encouraging anyone who never applied for Social Security benefits due to WEP or GPO reductions to go ahead and apply now.</p>



<p>For more information, visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2%2C6%2C10" target="_blank" rel="noreferrer noopener">ssa.gov</a>.</p>


Social Security Administration Expediting Benefit Processing for Those Affected by WEP/GPO


<p>The 2025 legislative session is well underway with more than 400 bills introduced so far.</p>



<p>To hear the latest from the State Capitol, we caught up with PERA Director of Public &amp; Government Affairs Michael Steppat, who meets regularly with lawmakers throughout the legislative process.</p>



<h4 class="wp-block-heading"><strong>Let’s start with a quick recap of the PERA-related bills we’ve seen so far and where they stand.</strong></h4>



<p>So far this session, legislators have introduced six bills that affect PERA or our members. <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">One of those bills</a>—which reintroduced last year’s bill to create a temporary tax credit for retirees—has already been defeated in committee.</p>



<p>The five bills that remain under consideration touch on a variety of topics. For example, <a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">SB25-136</a> would remove the state income tax deduction limit on pension income, and <a href="https://leg.colorado.gov/bills/hb25-1150" target="_blank" rel="noreferrer noopener">HB25-1150</a> would require a PERA member who’s convicted of a sex crime to forfeit part of their benefits.</p>



<p>Two of the bills—<a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">SB25-028</a> and <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>—propose changes to state law that in many cases codify work PERA and the PERA Board are already doing. That includes things such as financial studies and reporting, video streaming Board meetings and posting meeting materials online. As a mission-driven organization, transparency is important to the work we do, and we appreciate working with the Legislature to ensure all stakeholders have the information they need.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/2025-proposed-pera-related-legislation-status" target="_blank" rel="noreferrer noopener">2025 Proposed PERA-Related Legislation Status</a></p>



<h4 class="wp-block-heading"><strong>Writing the State’s budget is always an important part of the legislative session; how’s that process going this year?</strong></h4>



<p>Lawmakers began the session with a challenging budget situation—a shortfall of nearly $700 million. There have also been some questions about whether anything in Washington, DC will affect the hundreds of millions of dollars Colorado receives from the federal government. Throughout the budget writing process, lawmakers are keeping a close eye on any potential impacts to the state budget.</p>



<p>The Legislature will release its budget proposal, known as the “long bill,” in March and finalize it in April. While the state budget doesn’t determine PERA’s budget or the payment of benefits, we’ll keep an eye out for anything that might affect PERA or PERA employers down the line.</p>



<h4 class="wp-block-heading"><strong>Do any of the changes in the federal government, such as staffing reductions and spending freezes, affect PERA?</strong></h4>



<p>PERA does not receive federal funding and so far, none of the changes in the federal government have any direct impact on PERA. All of our funding comes from employee and employer contributions, investment returns, and an annual $225 million direct distribution from the state. PERA benefits are paid from the PERA trust funds and are not subject to federal funding or programs.</p>



<p>The Colorado General Assembly created PERA and remains in charge of things like benefit provisions and legislative oversight. While the federal government has limited jurisdiction over public retirement plans like PERA, it does oversee other benefits PERA members and retirees may receive, such as Medicare and Social Security.</p>



<h4 class="wp-block-heading"><strong>Speaking of Social Security, what’s the latest on the Social Security Fairness Act and the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</strong></h4>



<p>Since the Social Security Fairness Act <a href="https://www.copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law">became law in early January</a>, the Social Security Administration (SSA) has been working to figure out how it will implement all the necessary changes and recalculate retiree benefits. That could take some time under the best of circumstances, since it’s a complicated issue with millions of affected beneficiaries.</p>



<p>The SSA said it’s been under a hiring freeze since November so it’s working with limited staff, and that’s likely to cause a delay in implementing the law. If we see further reductions in the SSA workforce, it’s possible the delay could stretch even further. Only time will tell, and we’re keeping an eye out for any updates or developments from SSA.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/social-security-fairness-act-rollout-could-take-a-year-or-more" target="_blank" rel="noreferrer noopener">Social Security Fairness Act Rollout Could Take A Year or More</a></p>



<h4 class="wp-block-heading"><strong>What’s the best way to stay up to date throughout the session?</strong></h4>



<p>We post regular updates here on <em>PERA On The Issues</em>, so <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribing to the biweekly newsletter</a> is a great way to receive the latest news in your inbox. The legislative session will run through early May, and we’ll be sure to let everyone know about any new bills that come up between now and then.</p>


Checking in on the 2025 Legislative Session So Far


<p><em>Editor&#8217;s note (Feb. 27, 2025): Since this article was published, the Social Security Administration announced it is expediting processing for many cases and sending out retroactive benefit payments. View <a href="https://www.copera.org/pera-on-the-issues/social-security-administration-expediting-benefit-processing-for-those-affected-by-wep-gpo">our updated article</a> or visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2%2C6%2C10" target="_blank" rel="noreferrer noopener">ssa.gov</a> for the latest information.</em></p>



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<p>Public employees hoping to see larger Social Security benefit payments following the repeal of the federal Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) may have a long wait.</p>



<p>While the Social Security Administration (SSA) hasn’t provided a timeline for when changes will take effect, officials are warning the process of recalculating and paying benefits for millions of beneficiaries will likely take a significant amount of time to complete—potentially a year or more.</p>



<h4 class="wp-block-heading"><strong>What we know so far</strong></h4>



<p>Congress passed H.R. 82, the Social Security Fairness Act, in late December and President Joe Biden <a href="https://www.copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law" target="_blank" rel="noreferrer noopener">signed the bill in early January</a>. The bill repeals WEP and GPO, which for decades had reduced Social Security benefits for retirees who also received a pension for work not covered by Social Security.</p>



<p>As enacted, the bill applies to benefits payable after December 2023, meaning affected retirees who were already receiving Social Security benefits in 2024 will be owed back payments once their benefit is recalculated. So far, SSA hasn’t said whether those back payments for 2024 will come as a lump sum or be included in future benefit payments.</p>



<h4 class="wp-block-heading"><strong>Why the long timeline?</strong></h4>



<p>There are a couple reasons why implementation of the Social Security Fairness Act could have an extended timeline, with staffing and funding being two of the biggest challenges.</p>



<p>According to SSA, the agency is understaffed and has been under a hiring freeze since November 2024, meaning it is unable to bring on any additional staff to help with implementation or answering the phones. In addition, the Social Security Fairness Act did not include any funding to pay for any of the administrative costs associated with this significant change in federal law, SSA said.</p>



<p>Unless SSA receives additional funds or the staffing freeze is lifted, the agency will have to work within its current budget and staffing levels to complete all the changes required under the law.</p>



<h4 class="wp-block-heading"><strong>How to stay in the loop</strong></h4>



<p>The Social Security Administration will continue to provide updates <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2%2C6%2C10">on its website</a>, and more information should be available in the weeks and months ahead.</p>



<p>We will be closely monitoring this issue and will post updates on <em>PERA On The Issues</em> when available. To stay in the know, be sure to subscribe to the <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">biweekly newsletter</a>.</p>


Social Security Fairness Act Rollout Could Take A Year or More


<p>Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) will soon be no more.</p>



<p>After legislators took historic action to pass the <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">Social Security Fairness Act</a> in the final hours of Congress in late December, President Joe Biden signed the bill into law on Sunday, Jan. 5.</p>



<p>It’s now up to the Social Security Administration to begin implementing the changes.</p>



<h4 class="wp-block-heading"><strong>Why it matters</strong></h4>



<p>The bill removes from federal law Social Security’s WEP and GPO, two provisions that can significantly reduce Social Security benefits for retirees who also receive retirement income from work that wasn’t covered by Social Security. In Colorado, most public employees do not contribute to Social Security and therefore faced reductions to any earned Social Security benefits under WEP and GPO if they or their spouse contributed to Social Security before or after their public sector employment.</p>



<p>Lawmakers had been trying for decades to remove or modify WEP and GPO, but those bills never made it to the floor of the House or Senate for a vote. The passage of the Social Security Fairness Act in 2024 marks a historic change; removing those two provisions means the public employees affected by them will no longer receive reduced Social Security benefits.</p>



<p>As written, the bill’s changes are effective for Social Security benefits payable starting in 2024 and beyond.</p>



<h4 class="wp-block-heading"><strong>What does repeal mean for PERA members?</strong></h4>



<p>At this early stage, there are still a lot of questions about how the bill will be implemented. The Social Security Administration has not yet released any details on when or how any changes might take place. Visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html">ssa.gov</a> for the latest information from the Social Security Administration.</p>



<p>It’s important to note the repeal of WEP and GPO does not affect a PERA retiree’s PERA benefit; the changes only apply to Social Security benefits. Any questions about Social Security benefits should be directed to the Social Security Administration.</p>



<p>Throughout the legislative process, much of the debate on the bill had to do with its cost—the Congressional Budget Office <a href="https://www.cbo.gov/publication/60690" target="_blank" rel="noreferrer noopener">estimates</a> it will require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected by WEP and GPO. That additional cost could also accelerate the depletion of the Social Security trust funds, which may add urgency to legislative efforts to shore up the program.</p>



<p><em>PERA On The Issues</em> will continue to closely monitor this issue and provide updates when available. Be sure to <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a> to our biweekly newsletter and follow Colorado PERA on social media (we’re on <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>, <a href="https://www.instagram.com/coloradopera/?hl=en" target="_blank" rel="noreferrer noopener" class="broken_link">Instagram</a>, and <a href="https://www.linkedin.com/company/colorado-pera" target="_blank" rel="noreferrer noopener">LinkedIn</a>) for the latest information.</p>


President Biden Signs WEP/GPO Repeal Bill into Law


<p>As 2024 comes to a close, we’re taking a look back at the articles that resonated most with <em>PERA On The Issues </em>readers. Here are our most-read articles of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/2024-proposed-legislation-status"><strong>2024 Proposed Legislation Status</strong></a></h4>



<p>Legislation is always a popular topic on <em>PERA On The Issues</em>, and 2024 was no exception—our article tracking PERA-related bills throughout the session was our most-visited page of the year. State lawmakers introduced nine PERA-related bills during the legislative session, ultimately passing six of them, though one was amended to remove the provision related to PERA.</p>



<p>Continue reading to find out what we expect to see in the 2025 legislative session.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/what-to-expect-for-medicare-advantage-in-2025-blog"><strong>What to Expect for Medicare Advantage in 2025</strong></a></h4>



<p>The open enrollment period for PERACare—PERA’s health benefits program—happens every fall for coverage beginning the following January. While premiums for PERACare’s Medicare Advantage plans had been stable for three years, that rate freeze expired and various regulatory changes led to carriers announcing this fall that Medicare Advantage premiums would be higher for plan year 2025.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-and-more-to-know-for-2025"><strong>Updated Tax Brackets, Contribution Limits and More to Know for 2025</strong></a></h4>



<p>If you’re already thinking about your tax situation for 2025, you’re not alone. Our roundup of various tax-related inflation adjustments was one of our most-read articles of the year. The article includes details on updated retirement plan contribution limits, HSA/FSA contribution limits, new marginal tax brackets, and more.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate" target="_blank" rel="noreferrer noopener"><strong>U.S. House Passes WEP/GPO Bill, Heads to Senate</strong></a></h4>



<p>We frequently hear from PERA members who are frustrated with the way the Windfall Elimination Provision (WEP) and/or Government Pension Offset (GPO) reduce their Social Security benefit, so it was no surprise to see a high level of interest in the topic again this year.</p>



<p>Lawmakers have been introducing bills to modify or repeal WEP and/or GPO for years, and in 2024 the House of Representatives brought one such bill, the Social Security Fairness Act, up for a vote and passed it. With the bill awaiting action in the Senate, PERA and the Fire &amp; Police Pension Association of Colorado teamed up to <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf">send a letter to Colorado’s senators</a> encouraging them to support the bill. The bill has since passed the Senate and is awaiting President Biden&#8217;s signature.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/state-lawmakers-pursuing-two-pera-related-bills-in-2025" target="_blank" rel="noreferrer noopener"><strong>State Lawmakers Pursuing Two PERA-Related Bills in 2025</strong></a></h4>



<p>Back here in Colorado, state lawmakers are getting ready for the start of another legislative session in January. We expect to see some PERA-related legislation introduced in the new session, including two bills that lawmakers on the Pension Review Commission drafted during this year’s interim period between sessions.</p>



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<p>We want to thank everyone who subscribes and reads <em>PERA On The Issues</em>. We appreciate your readership and we look forward to helping you stay informed in the new year.</p>



<p>Make sure you’re <a href="https://www.copera.org/pera-on-the-issues/subscribe">subscribed to our biweekly newsletter</a> to stay up-to-date on all the latest news, and join the conversation on <a href="https://www.facebook.com/ColoradoPERA/" class="broken_link">Facebook</a> and <a href="https://www.linkedin.com/company/colorado-pera">LinkedIn</a>.</p>


Year in Review: Our Top Articles of 2024


<h4 class="wp-block-heading"><a href="https://thehill.com/homenews/5013493-social-security-bill-senate/" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Social Security Reform Bill Awaits Senate Vote Amid Uncertainty | The Hill</strong></a></h4>



<p>The Social Security Fairness Act, a federal bill that would repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, passed the U.S. House in November. The bill is now awaiting action in the Senate, where its fate is increasingly uncertain with just days left for lawmakers to pass legislation before a new Congress begins.</p>



<h4 class="wp-block-heading"><a href="https://www.investopedia.com/lost-track-of-your-old-401-k-accounts-a-new-service-could-help-recover-the-money-8749171" target="_blank" rel="noreferrer noopener"><strong>Lost Track Of Your Old 401(k) Accounts? A New Service Could Help Recover The Money | Investopedia</strong></a></h4>



<p>The U.S. Department of Labor is getting ready to launch a database to help workers find old retirement accounts. The so-called retirement savings lost and found aims to make sure workers can find and access their 401(k) savings when they switch jobs rather than leaving that money behind. The database should be up and running by the end of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.fastcompany.com/91236800/retirement-saving-spending-psychology" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Retirement Saving and Spending Can Be Complicated. Here&#8217;s What Psychology Says | Fast Company</strong></a></h4>



<p>When making the transition from regular, full-time work into retirement, many people find themselves struggling to move from a saving mindset to a spending mindset. While every person’s situation is different, principles of psychology can help explain why that transition can be so difficult.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/personal-finance/ways-to-maximize-your-end-of-year-philanthropy" target="_blank" rel="noreferrer noopener"><strong>Five Ways to Maximize Your End-of-Year Philanthropy | Kiplinger</strong></a></h4>



<p>The end of the year is a popular time to give money to various causes. If you’re thinking of giving this holiday season, here are some things to keep in mind to ensure your donation makes an impact.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: WEP/GPO Bill’s Fate Uncertain in Final Days of Congress


<p><em>UPDATE (Jan. 7, 2025): Pres. Joe Biden has signed the Social Security Fairness Act into law. <a href="https://copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law">We posted an updated article here</a></em>.</p>



<p><em>UPDATE (Dec. 30, 2024): The U.S. Senate on Dec. 21 voted to pass the Social Security Fairness Act. The bill now awaits President Biden&#8217;s signature.</em></p>



<p><em>UPDATE (Dec. 13, 2024): Colorado PERA and the Fire &amp; Police Pension Association of Colorado sent a joint letter to Sens. Michael Bennet and John Hickenlooper, encouraging them to support the Social Security Fairness Act in the Senate. <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf" target="_blank" rel="noreferrer noopener">Read the letter</a>.</em></p>



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<p>In a historic first, the U.S. House of Representatives voted to pass a bill that aims to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which can reduce Social Security benefits for Colorado PERA members and other public employees.</p>



<p>The bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>—also known as the Social Security Fairness Act—was introduced in early January 2023 and eventually gained the support of over 300 cosponsors on both sides of the aisle. Lawmakers didn’t take any significant action on the bill until September 2024, when sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what’s known as a discharge petition, seeking to move the bill out of committee and force a floor vote.</p>



<p>Despite an Election Day maneuver seeking to table the bill, House leadership put H.R. 82 to a vote on Tuesday, November 12. It passed by a vote of 327 to 75.</p>



<p>The bill&#8217;s fate now lies with the Senate as lawmakers have just days to pass legislation before the current Congress ends. Senate Majority Leader Chuck Schumer has said he intends to bring the bill up for a vote.</p>



<p>Some lawmakers have expressed concern about the bill’s cost; a recent <a href="https://www.cbo.gov/system/files/2024-09/hr82.pdf" target="_blank" rel="noreferrer noopener">estimate from the Congressional Budget Office</a> found it would require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected.</p>



<div class="wp-block-advgb-accordions advgb-accordions-33573baf-91a8-44c8-9092-12968a0e3d9f advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">What are WEP and GPO?</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about&nbsp;<a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<p>Federal lawmakers also voted on another WEP-related bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/5342" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 5342</a>, which would have introduced a new formula for calculating Social Security benefit reductions rather than a full repeal. That bill failed on a vote of 175 to 225.</p>



<p><em>PERA On The Issues</em> will continue to monitor legislation on this issue and we’ll post updates when available. Be sure to <a href="https://copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe to our biweekly newsletter</a> to stay informed.</p>


U.S. House Passes WEP/GPO Repeal Bill, Heads to Senate


<h4 class="wp-block-heading"><a href="https://www.nerdwallet.com/article/finance/when-the-fed-cuts-rates" target="_blank" rel="noreferrer noopener"><strong>What Happens Now That the Fed Finally Cut Rates? | NerdWallet</strong></a></h4>



<p>Federal Reserve Chair Jerome Powell recently announced the central bank would lower its key interest rate for the first time since 2020. While a rate cut was expected, some were surprised by the Fed’s decision to slash the rate by 0.5% instead of a more incremental 0.25%. Here’s what lower interest rates could mean for your finances and the economy as a whole.</p>



<h4 class="wp-block-heading"><a href="https://www.govexec.com/pay-benefits/2024/09/lawmakers-successfully-force-vote-eliminating-windfall-elimination-provision/399759/" target="_blank" rel="noreferrer noopener"><strong>Lawmakers Successfully Force a Vote on Eliminating the Windfall Elimination Provision | Government Executive</strong></a></h4>



<p>The federal lawmakers leading the charge on H.R. 82—aka the Social Security Fairness Act, which would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—have succeeded in their efforts to force a floor vote on the issue. Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) used a rare tactic called a discharge petition, which reached the necessary threshold of 218 signatures to bypass Congressional leadership and get a vote on the floor of the House of Representatives. A vote likely won’t happen until at least November, and the bill would still have to pass the Senate before the conclusion of this Congress in January.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2024/09/24/september-consumer-confidence-falls-the-most-in-three-years.html" target="_blank" rel="noreferrer noopener"><strong>September Consumer Confidence Falls the Most in Three Years | CNBC</strong></a></h4>



<p>The latest survey data show American consumers are increasingly pessimistic about the current and future state of the economy. According to the monthly Conference Board report, its consumer confidence index dropped to 98.7 in August, marking the biggest single-month decline since 2021. Survey respondents largely cited the weakening job market and the effects of inflation as their main concerns.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.ecu.edu.au/newsroom/articles/research/travel-could-be-the-best-defence-against-ageing" target="_blank" rel="noreferrer noopener">Travel Could Be the Best Defense Against Aging | Edith Cowan University</a></strong></h4>



<p>If your retirement plans include travel, you could be doing yourself the favor of improving your health and slowing down the aging process. According to new research from Edith Cowan University in Australia, the pleasure we derive from travel activities—such as unplugging from daily life, getting more exercise, and having new experiences—can help alleviate stress and boost our overall functioning, which can help slow down the clock in terms of aging.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: What Lower Interest Rates Mean For Your Finances


<h4 class="wp-block-heading"><a href="https://spanberger.house.gov/posts/spanberger-graves-file-discharge-petition-for-social-security-fairness-act-push-to-force-u-s-house-vote-on-bipartisan-bill-to-eliminate-wep-gpo" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Spanberger, Graves File Discharge Petition for Social Security Fairness Act, Push to Force U.S. House Vote on Bipartisan Bill to Eliminate WEP &amp; GPO | Rep. Abigail Spanberger</strong></a></h4>



<p>Congress is back from recess, and the two main sponsors of a bill that would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) say they’re going to attempt to force a floor vote on the bill. Representatives Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed a discharge petition, which will need 218 signatures to force a vote. The bill, The Social Security Fairness Act, has received the support of more than 300 members of Congress but has stalled since it was introduced in early 2023.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/employee-retirement-income-security-act-erisa-turns-50" target="_blank" rel="noreferrer noopener"><strong>Employee Retirement Income Security Act Turns 50: Protecting Your Plans | Kiplinger</strong></a></h4>



<p>It’s been 50 years since the Employee Retirement Income Security Act of 1974 (ERISA) was enacted into law, adding new protections for workers and changing the way many people save for retirement. While ERISA doesn’t govern public pension plans like Colorado PERA, it’s been a consequential piece of legislation in the private sector and paved the way for today’s employer-based retirement plans like 401(k)s.</p>



<h4 class="wp-block-heading"><a href="https://chhs.source.colostate.edu/new-drug-may-improve-memory-in-older-adults-treat-alzheimers/" target="_blank" rel="noreferrer noopener"><strong>New Drug May Improve Memory in Older Adults, Treat Alzheimer’s | Colorado State University</strong></a></h4>



<p>Researchers at Colorado State University say they’ve been testing a drug that shows promise in treating memory loss associated with aging and neurological conditions like Alzheimer&#8217;s disease. The researchers teamed up with a local biotech company to test the drug, which targets two specific proteins in the brain. The team hopes to get approval for human trials soon.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/09/10/colorado-taxes-pilot-program/" target="_blank" rel="noreferrer noopener"><strong>Colorado Department of Revenue to Help 100,000 Residents File Their Taxes | The Colorado Sun</strong></a></h4>



<p>State officials are working to implement a new law that will help many Coloradans claim tax credits they may know they qualify for. Under the law, the Colorado Department of Revenue will help up to 100,000 households file or amend their tax returns to claim state and/or federal earned income tax credits and child tax credits, which could help many lower income families in the state.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Lawmakers Push for Floor Vote on WEP/GPO Bill


<p><em>Update: In November 2024, the House passed H.R. 82, the Social Security Fairness Act. Please <a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate">visit this page</a> for the latest.</em></p>



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<p>We often hear from Colorado PERA members who want to know if legislators have made any progress in their efforts to change two provisions of federal law that can reduce retirees’ Social Security benefits.</p>



<p>Because most PERA members do not participate in Social Security while working for a PERA employer, any Social Security benefit they earned from private-sector work may be affected by the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).</p>



<p>Those provisions have been part of federal law since the 1980s, but lawmakers in recent years have repeatedly sought to modify or repeal them without success.</p>



<div class="wp-block-advgb-accordions advgb-accordions-505a0fe6-41e1-4105-b85d-38166d97884b advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">Why WEP and GPO exist</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<h4 class="wp-block-heading"><strong>Where things stand</strong></h4>



<p>While federal lawmakers have introduced about a half-dozen bills this Congress that touch on the WEP and GPO issue, the one that has received the most attention and support is <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>, the Social Security Fairness Act of 2023. Its counterpart in the Senate is <a href="https://www.congress.gov/bill/118th-congress/senate-bill/597" target="_blank" rel="noreferrer noopener" class="broken_link">S. 597</a>. Both bills were introduced in early 2023.</p>



<p>Other bills that seek to modify or repeal WEP and/or GPO include <a href="https://www.congress.gov/bill/118th-congress/house-bill/4583" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 4583</a> and <a href="https://www.congress.gov/bill/118th-congress/senate-bill/2280" target="_blank" rel="noreferrer noopener" class="broken_link">S. 2280</a>—both known as the Social Security 2100 Act—which propose a number of changes to Social Security, including temporarily eliminating WEP and GPO. Those bills were introduced in July 2023.</p>



<p>In April 2024, the House Ways and Means Committee convened for <a href="https://www.ncpers.org/blog_home.asp?display=350" target="_blank" rel="noreferrer noopener">an informational hearing on the topic of WEP and GPO</a>. The meeting didn’t result in any action on the above bills, but lawmakers heard from a panel of experts on the effects the two provisions have on retired public employees and the potential impacts of any changes to Social Security. Testimony largely centered around the fact that the Social Security Administration now has better worker data and WEP/GPO formulas could potentially be updated, but the cost to make any changes would amount to billions of dollars over the next decade.</p>



<p>Neither Social Security Fairness Act bill has made forward progress in Congress, but they continue to gather support—H.R. 82 in particular has gained more than 300 cosponsors in the House. And in May, the bipartisan Problem Solvers Caucus threw its support behind the Social Security Fairness Act with its 62 members <a href="https://problemsolverscaucus.house.gov/media/press-releases/problem-solvers-back-legislation-to-guarantee-full-social-security-benefits-for-police-officers-firefighters-and-public-servants" target="_blank" rel="noreferrer noopener">endorsing the legislation</a>.</p>



<p>In September, bill sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what&#8217;s known as a discharge petition, seeking to move H.R. 82 out of committee and force a floor vote. That petition reached the required threshold of 218 signatures, allowing the sponsors to request a vote in the House of Representatives. With Congress in recess for the month of October, a vote could happen as soon as November, but even if it passes the House, the bill faces an uncertain future in Senate.</p>



<h4 class="wp-block-heading"><strong>What’s next?</strong></h4>



<p>We can expect congressional lawmakers to continue discussing this issue. Even if none of the above bills see any meaningful action before the current Congress ends, legislators are likely to introduce new bills in the next Congress.</p>



<p>As we’ve seen repeatedly over the years, bills that seek to modify or repeal WEP and/or GPO face a steep uphill battle, with lawmakers often citing the cost of increased Social Security benefits as a significant hurdle to overcome. That’s especially true in the face of pessimistic forecasts of Social Security’s finances.</p>



<p>While the most recent projections are somewhat better than expected, Social Security’s cash reserves are still <a href="https://www.cnbc.com/2024/05/06/social-security-expected-to-run-short-on-funds-in-2035-government-says.html" target="_blank" rel="noreferrer noopener">expected to be depleted in about a decade</a>. If that happens and Congress hasn’t taken any action, Social Security will be forced to begin reducing benefits, but experts expect lawmakers will take action to shore up the system’s finances before any benefit reductions are necessary. It’s possible that a package of reforms for Social Security could also include some changes to the WEP and GPO, but only time will tell.</p>



<p>One of the most effective forms of advocacy is for PERA members and retirees to&nbsp;<a href="https://www.usa.gov/elected-officials" target="_blank" rel="noreferrer noopener">contact their senators and representatives</a>&nbsp;in Congress to let them know how the WEP and GPO affect them, as this issue is will be decided at the federal level.</p>



<p>We’ll continue to monitor this issue and post any updates on <em>PERA On The Issues </em>when we can. To stay in the loop, be sure to <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a> to our biweekly newsletter.</p>


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