A SOCIAL Security crisis is hitting public servants, as one retiree revealed she lost hundreds of thousands.
Martha Karlovetz is a former teacher who said she was deprived of her benefits.
She taught in Missouri for over 10 years before learning Social Security would reduce benefits for millions of public servants.
“It was the mid-1980s when I first heard of it [WEP],” Karlovetz told the National Education Association.
The Windfall Elimination Provision (WEP) allowed changes to be made to Social Security reducing benefits for millions across the nation.
“But at that time we really didn’t think it was going to last, so it wouldn’t be a big deal.”
However, since 1995, Karlovetz has lost $111,384 due to the Windfall Elimination Provision.
I told them, ‘I’ve been working on this since 2001. And I don’t have another 10 years to wait!
Martha Karlovetz
Additionally, the Government Pension Offset (GPO) also reduces spousal benefits.
This means that if her husband dies before her, she will only get $14 per month.
She visited Washington D.C. on the NEA-Retired Day of Action to lobby for the Social Security Fairness Act.
This legislation would eliminate the GPO and WEP, and while it hasn’t been passed yet, Karlovetz was eager to speak with the House Ways and Means Committee.
“I told them, ‘I’ve been working on this since 2001,” she said.
“And I don’t have another 10 years to wait!'”
WHAT IS WEP?
The Windfall Elimination Provision is a US statutory provision approved under law in 1977.
It can impact how the Social Security Administration (SSA) calculates a retirement or disability benefit, according to SSA.gov.
Last December, 2.1 million people, or 3% of all Social Security beneficiaries, were impacted by WEP, according to Congressional Research Service.
Close to two million of those affected were retired.
Pensions from a job can reduce Social Security benefits if you work for an employer who doesn’t take Social Security taxes from salaries.
Benefits can be affected by WEP if someone meets both criteria:
- You earn a pension for retirement or disability from an employer who doesn’t withhold Social Security taxes
- You might be eligible for Social Security or disability benefits from other jobs you paid taxes for
The WEP can then apply if the beneficiary has reached 62 before 1985 or formed a qualifying disability after 1985.
Filing Waiver Form SSA-632
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
There could be exceptions if the beneficiary worked as a federal worker after 1983 or if their only pension came from railroad employment.
MORE SOCIAL SECURITY
Another Social Security recipient said they were overpaid $37,000 and got a notice saying they needed to pay it back in 30 days.
Dan Calkins from Michigan was told the overpayment error dated back to 2018.
He and his wife Phyllis said they were first notified in 2022 through a phone call and letter from the Social Security Administration.
Calkins was told his Social Security number was “mixed” with another, but said he wasn’t given more information about the error.
However, an SSA representative said the couple could submit a SSA-632 waiver form to appeal the overpayment.
The U.S. Sun covers more stories on Social Security and Supplemental Security Income.
Another former teacher was told she owed $2,000 after being laid off.
One beneficiary was encouraged to fill out a waiver form after she was overpaid by $5,000.