After 15 years as an architect, Peg Cagle entered the classroom during the 1990s to meet California’s growing demand for math and science teachers. But when she retires, she will pay a huge and unexpected price for her dedication to the children of Los Angeles due to a Social Security offset, known as the Windfall Elimination Provision (WEP).
“I knew that my career move would result in an immediate pay cut,” says Cagle, a member of United Teachers Los Angeles. “I did not realize, however, that I would suffer further financial penalties upon retirement.”
Currently, educators in about 15 states do not pay into the Social Security system.
WEP penalizes individuals, like Cagle, who spent part of their careers in jobs not covered by Social Security.
Cagle and a delegation of four other CTA members, NEA Director Patty Taylor, CTA Director Dana Dillon, CTA-Retired President Arlene Pavey and CTA Retirement Committee Vice-Chair John Anderson, went to Washington, D.C., in January to lobby on behalf of the Social Security Fairness Act. The bill would repeal WEP and another punitive provision — the Government Pension Offset (GPO), which reduces the survivor/dependent benefit.
“When you are on a fixed income and have lost a spouse, this amount can make the difference between self-sufficiency and poverty,” says Cagle, who testified before a House subcommittee as did Taylor.
The time for congressional action is long overdue, says NEA President Reg Weaver. “If Congress is serious about encouraging professionals from the private sector to answer the call to teach, it must repeal these offsets.”