March l2, 200l


MEMORANDUM



To: Chapter Presidents

Re: Government Pension Offset Legislation

I am pleased to tell you that legislation has been introduced once again in the House of Representatives to relax the effects of the Government Pension Offset (GPO). This is the offset that reduces spousal Social Security benefits for those who are also eligible to receive retirement benefits under the Civil Service Retirement System (CSRS).

H.R.664 has been introduced by Congressman William Jefferson (D-LA) and has already gathered l49 cosponsors. Attached is a summary of this bill as well as a list of the current cosponsors. Legislation is expected to be introduced in the Senate on this same issue in the next few weeks.

The GPO reduces the Social Security spouse or widows benefit by two-thirds of the amount of the government annuity. If, for example, a CSRS retiree is eligible for a monthly annuity of $600 based on federal government service, two-thirds of that amount, or $400, must be used to offset the Social Security spousal benefit. If this same person is eligible for $500 in Social Security based on a spouse's work record, the GPO results in this person receiving only a $l00 monthly Social Security benefit.

The effects of this offset are particularly harsh on lower paid female employees who are often eligible for smaller annuities as a result of working in lower graded positions or interruptions in their careers while raising their families.

For your information, I have attached a sample letter you can use to encourage your own Member of the House of Representatives to cosponsor this important legislation. Please refer to the attached list of current cosponsors to see if your Member of the House is on this list. If he or she is, please take a moment to thank them for their leadership on this matter. If he or she is not on this list, please send a copy of the attached letter to your Representative asking that he or she cosponsor H.R.664.

I would also suggest that you post this information at your worksite so that your fellow employees will be aware of NTEU's efforts in this area. You may also want to use the introduction of this legislation as an opportunity to hold a Chapter letter writing campaign urging your local members of the House of Representatives to cosponsor this legislation.

We have come close to passing Government Pension Offset reform legislation in past Congresses. The key to victory is getting the maximum number of cosponsors and using the level of support we have gathered to encourage action on the legislation. Thanks very much for your help in this effort.

Attached Form

Colleen M. Kelley
National President

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