State & Local Pensions
This legislation would allow some workers to double-dip and speeds the exhaustion of the trust fund. On November 12, the House passed the Social Security Fairness Act to repeal the Windfall Elimination Provision (WEP), which reduces Social Security benefits for workers receiving significant government pensions from jobs not covered by Social Security. A companion provision…
Many who are familiar with state and local government finances are concerned that rising pension contributions could be crowding out important government services. And, some academic literature does find that higher pension contributions are associated with reduced employment in local governments and school districts. The issue is particularly acute for school districts, which must maintain…
