A bill has been introduced in the House and Senate (HR-3934) to soften the impact of the Social Security “windfall elimination provision” that reduces those benefits for those also drawing benefits from a retirement program that does not include Social Security, such as CSRS.
It is the latest in a long line of proposals over many years targeting the reduction, which applies to many of those who are nevertheless eligible for a personal Social Security benefit from work or self-employment in which they did pay into that system.
The reduction affects those with less than 30 years of Social Security earnings below a threshold—this year, $24,675. The maximum reduction, for those without at least 20 years of such “substantial” Social Security earnings, works out to be about $460 a month; there is a phaseout for those with between 20 and 30 years of such earnings.
Under the bill, for those who would be age 59 or under at enactment—most current federal employees under CSRS are near that age if not already over it—a revised formula would be created and at retirement individuals could choose between that and the traditional formula, whichever is more beneficial to them.
For those age 60 or older at enactment the current reduction would continue to apply but as a partial make-up, their monthly Social Security benefits would be increased by $100. Spousal or survivor benefits paid on their behalf would increase by $50 a month.
The measure is a slightly revised version of one introduced in the prior Congress.
