Retirement insights from a Colorado PERA perspective

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<a href="https://www.plansponsor.com/senate-help-hearing-spotlights-social-security-reforms-early-retirement-savings/" target="_blank" rel="noreferrer noopener">Senate HELP Hearing Spotlights&nbsp;Social Security Reforms, Early Career Savings&nbsp; | PLANSPONSOR</a>



The Senate Committee on Health, Education, Labor and Pensions recently held a hearing to discuss the current and future states of American workers’ retirement savings. The hearing covered topics such as Social Security, automatic savings, and long-term care, as well as potential legislative solutions.



<a href="https://www.investopedia.com/trump-indicates-that-he-s-looking-into-a-retirement-system-that-s-like-the-11862180" target="_blank" rel="noreferrer noopener">Trump Signals Interest in Australia’s Retirement System: Here&#8217;s How The US Is Different | Investopedia</a>



President Trump has expressed admiration for Australia’s retirement savings system and suggested the United States could learn a few things from the land down under. Australia’s retirement system is one of the largest in the world and is notable for its reliance on employer-funded benefits that reduce savings pressure on individual employees.



<a href="https://apnews.com/article/social-security-trump-administration-retirement-a94ced488f2e052a5d9df39021701195" target="_blank" rel="noreferrer noopener">Social Security Administration to Cut Office Visits in Half. What It Means for You. | AP News</a>



The Social Security Administration, which has eliminated thousands of staff positions and moved more services online, is aiming to reduce visits to its local field offices next year. The agency set a target of no more than 15 million in-person visits for 2026, which is about a 50% reduction from the more than 31 million who visited field offices this year.



<a href="https://money.com/economist-predictions-for-retirement/" target="_blank" rel="noreferrer noopener">What Economists Predict for Retirees Over the Next 10 Years | Money</a>



What do 2026 and the years beyond have in store for retirees’ finances? It’s hard to say with certainty, but economists can offer up some predictions on factors like inflation and interest rates that are likely to have an impact on personal finance in the coming years.



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

News You Should Know: Senate Committee Holds Hearing on Retirement Savings

<a href="https://www.cnbc.com/2025/09/09/retirement-will-take-a-miracle.html" target="_blank" rel="noreferrer noopener">Fewer People Think Retirement Will ‘Take a Miracle,’ Report Finds. But Inflation Worries Persist | CNBC</a>



A recent survey found Americans are feeling more optimistic about retirement. The survey found that 21% of respondents felt like it would take “a miracle” to enjoy a secure retirement, down from more than 40% who said so in 2021. The survey also found generational differences in expected retirement age, with millennials planning to retire in their early 60s and baby boomers who are not yet retired expecting to work until 70.



<a href="https://www.napa-net.org/news/2025/8/theyre-back--congress-returns-but-will-we-see-any-retirement-legislation/" target="_blank" rel="noreferrer noopener">They’re Back — Congress Returns, But Will We See Any Retirement Legislation? | National Association of Plan Advisors</a>



Congressional lawmakers are back at work following the summer recess. There’s a long list of legislative issues to tackle, including federal spending. Here are some of the retirement-related issues that lawmakers might take up this session.



<a href="https://www.irs.gov/newsroom/irs-assesses-162-million-in-penalties-over-false-tax-credit-claims-tied-to-social-media" target="_blank" rel="noreferrer noopener">IRS Assesses $162 Million in Penalties over False Tax Credit Claims Tied to Social Media | Internal Revenue Service</a>



Be careful where you get your tax advice—the IRS says it’s collected $162 million in penalties from thousands of people who fell for fraudulent tax return tips on social media. Officials say they’ve seen a significant increase in fraudsters posing as experts online and encouraging people to claim tax credits they’re not actually eligible for.



<a href="https://www.denver7.com/news/local-news/as-falling-deaths-rise-for-older-adults-how-home-safety-can-make-a-difference" target="_blank" rel="noreferrer noopener">As Falling Deaths Rise for Older Adults, How Home Safety Can Make a Difference | Denver7</a>



Taking a fall can be increasingly dangerous as we age, and government statistics show an increase in fatal falls in recent years. Many of those falls happen at home, and a little bit of preventive maintenance to remove potential hazards can go a long way in making a home safer for its aging residents.



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

News You Should Know: Americans More Optimistic About Retirement, Survey Finds

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>.



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.



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>.



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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.



The bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener">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.



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.



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.



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.



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<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"><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><h2 class="advgb-accordion-header-title" style="color:inherit">What are WEP and GPO?</h2></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">
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.



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.



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>.
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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">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.



PERA On The Issues 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.

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

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.



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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.



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).



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.



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<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"><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><h2 class="advgb-accordion-header-title" style="color:inherit">Why WEP and GPO exist</h2></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">
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.



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.



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>.
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<h2 class="wp-block-heading">Where things stand</h2>



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">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">S. 597</a>. Both bills were introduced in early 2023.



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">H.R. 4583</a> and <a href="https://www.congress.gov/bill/118th-congress/senate-bill/2280" target="_blank" rel="noreferrer noopener">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.



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" class="broken_link">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.



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>.



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.



<h2 class="wp-block-heading">What’s next?</h2>



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.



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.



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.



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.



We’ll continue to monitor this issue and post any updates on PERA On The Issues 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.

The Latest on Federal WEP/GPO Legislation

Editor&#8217;s note (June 7, 2023) : Since we published this article, more legislation has been introduced in Congress. Visit <a href="https://www.copera.org/pera-on-the-issues" target="_blank" rel="noreferrer noopener">PERA On the Issues</a> for the latest.



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Federal lawmakers seeking to repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are giving it another try this year.



U.S. Representatives Abigail Spanberger (D-VA) and Garrett Graves (R-LA) reintroduced the <a href="https://content.copera.org/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">Social Security Fairness Act of 2023</a> (H.R. 82) in January. A similar bill received widespread bipartisan support in 2022 but never made it to a floor vote. Bills that don’t pass expire at the conclusion of each Congress.



The <a href="https://content.copera.org/wep-gpo-bill-introduced-in-d-c/" target="_blank" rel="noreferrer noopener">WEP and GPO</a>, which are part of federal law, can reduce Social Security benefits for recipients of public pensions like Colorado PERA that serve as a substitute for Social Security. It’s important to note that a person’s PERA benefit is never reduced due to Social Security or other benefits.



While some bills in recent years have aimed to modify one or both the WEP and GPO, H.R. 82 seeks to fully repeal both provisions. As of early February, the bill had nearly 150 cosponsors, two of whom are from Colorado: Rep. Joe Neguse (D-CO-2) and Rep. Jason Crow (D-CO-6). The previous version of the bill received over 300 cosponsors, including four from Colorado.



Why hasn’t Congress taken any substantial action on WEP/GPO despite strong support? Essentially, it comes down to cost. Eliminating or changing the WEP/GPO provisions of Social Security would mean providing larger checks to benefit recipients, costing the system more money. Recent projections show the Social Security trust funds are <a href="https://www.cbo.gov/publication/58564" target="_blank" rel="noreferrer noopener">expected to be depleted in about a decade</a>, so it’s a tough sell.



Since major changes may be needed to shore up Social Security’s financial footing, it’s possible changes to WEP/GPO could be included in a larger reform package. But it’s not clear when or if that might happen.



What’s Colorado PERA doing about it? Since this is a federal issue to be determined by Congress, we encourage members and retirees to <a href="https://content.copera.org/bill-to-repeal-wep-gpo-reintroduced-in-congress/" target="_blank" rel="noreferrer noopener">contact their members of Congress</a> to share their opinion about these provisions and how they affect them. PERA will continue to work with the Colorado General Assembly to ensure PERA is on-track to meet its funding goal in order to continue to provide current and future retirees with monthly income in retirement that cannot be outlived.



PERA On The Issues will continue to track any legislative action on WEP/GPO throughout the year. <a href="https://peraontheissues.com/subscribe/" target="_blank" rel="noreferrer noopener">Subscribe</a> to our biweekly newsletter for updates on this bill and other news related to public employee retirement.

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News You Should Know: Senate Committee Holds Hearing on Retirement Savings

News You Should Know: Americans More Optimistic About Retirement, Survey Finds

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

The Latest on Federal WEP/GPO Legislation

Bill to Repeal WEP/GPO Reintroduced in Congress

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