Congress should improve the current Government Pension Offset calculation by utilizing more detailed earnings data available to the Social Security Administration for both spouses’ covered and unco
Policymakers should change or eliminate the Social Security earnings limit only if the Social Security trust funds can be maintained.
AARP supports retaining wage indexing of both the Average Indexed Monthly Earnings and the bend points used in the formula for the Primary Insurance Amount.
If changes are made to Social Security that extend the life of the trust funds, Congress could authorize the investment of a portion of the Social Security reserves in investments
The receipt of Social Security benefits should continue to be based on earnings from work covered by Social Security.
The Old-Age, Survivors, and Disability Insurance Trust Funds should maintain a minimum reserve of one and a half to two years as a cushion against an economic downturn.
The Department of Labor should establish clear protections for participants in defined benefit plans when fiduciaries wish to transfer their pension annuities to private insurance companies.
Plans that wish to offer lump-sum buyouts should be required to provide clear and complete disclosures. These should be in hard-copy form and state the implications of choosing a lump sum.
When retirement plans transfer risk from the plan to others—either by purchasing annuities from private insurers that take responsibility for paying monthly benefits or by offering retirees current
Government workers should continue to have access to defined benefit (DB) plans.