House Votes to End Social Security Gains

The House passed legislation Wednesday to end a Social Security practice that allowed some government workers to receive increased retirement benefits.

The bill, approved 396 to 28, also would deny Social Security benefits to fugitive felons and to people who violated probation or parole. Voting against the measure were 25 Democrats and three Republicans.

Spouses of retired, disabled or deceased workers usually receive Social Security benefits. A 1977 law reduces those benefits for employees of some state and local governments who do not pay into the Social Security system and do not collect benefits and are covered by their own retirement systems.

But a provision allows those workers to avoid the reduction in benefits if they are covered by Social Security and their government pension during their last day on the job.

Congressional investigators found that 4,795 teachers in Texas and 24 in Georgia had taken advantage of the provision as of June 2002, transferring briefly to other jobs before retiring. For as little as $3 paid to Social Security, the teachers will receive on average an extra $4,800 a year.

Some school districts also started charging processing fees ranging from $100 to $500 to make the switch. One district collected an additional $283,000 in revenue from the fees.

The provision is costing the government about $450 million. Social Security officials say the practice could grow as more people become aware of it.

“No single group of workers should have an unfair advantage over workers in other school districts, in other pension systems, or across the nation,” said Rep. Clay E. Shaw Jr. (R-Fla.), the bill’s sponsor.

The bill would require state and local government workers to pay into Social Security for a minimum of five years to be exempt from the offset.

“This is no way to treat hardworking people who have dedicated their entire lives to serving their communities and this nation,” said Rep. Martin Frost (D-Texas). “It hurts real people -- especially women and lower-income individuals.”