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Legislative Updates

WEP reform bill stalls in committee

The Windfall Elimination Provision was enacted in 1983 and reduces the Social Security benefits of those receiving annuity under the Civil Service Retirement System (CSRS) and those who also earn Social Security benefits from other employment. Nearly 36,000 letter carriers are covered under CSRS, and those subject to WEP at retirement may see reductions to their benefits by more than $400 a month.

This week, the House Ways and Means Committee was scheduled to consider the Equal Treatment for Public Servants Act (H.R. 711), which calls for reducing the penalty to 50 percent for Windfall Elimination Provision (WEP)-affected federal employees.

Prior to the committee’s markup, Chairman Kevin Brady (R-TX), the bill’s author, released an amended bill that called for reducing the rebate for WEP-affected annuitants from 50 percent to an estimated 14 percent.

Brady has delayed consideration of the updated bill, citing a lack of stakeholder agreement about the provision. It’s unclear whether the committee will resume consideration of the measure when the House returns from its upcoming seven-week recess.

To learn more about the WEP, click here.

To read NALC’s fact sheet on the issue, click here.

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