2002 BR 2311/HCR 158/GA

March 13, 2002

Page 2

COMMONWEALTH OF KENTUCKY

STATE FISCAL NOTE STATEMENT

GENERAL ASSEMBLY / LEGISLATIVE RESEARCH COMMISSION
2002 REGULAR SESSION / 2000-2001 INTERIM

MEASURE

( x) 2002 BR No. / 2311 / ( ) / Bill No.
(x ) Resolution No. / HCR 158/GA / ( ) Amendment No.
SUBJECT/TITLE / A Concurrent Resolution relating to the Social Security Act's penalizing of members
of the Kentucky Teacher's Retirement System.
SPONSOR / Representative Jody Richards

NOTE SUMMARY

Fiscal Analysis: / Impact / X / No Impact / Indeterminable Impact
Level(s) of Impact: / State / Local / Federal
Budget Unit(s) Impact
Fund(s) Impact: / General / Road / Federal
Restricted Agency (Type) / (Other)

FISCAL SUMMARY

______

Fiscal Estimates / 2001-2002 / 2002-2003 / 2003-2004 / Future Annual
Rate of Change
Revenues (+/-)
Expenditures (+/-)
Net Effect

______

MEASURE'S PURPOSE: HCR 158/GA urges Congress to enact legislation to repeal the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act for the benefit of Kentucky teachers and members of the Kentucky Teachers' Retirement System and urges President George W. Bush to sign legislation from Congress repealing the Government Pension Offset and the Windfall Elimination Provision from the Social Security Act for the benefit of Kentucky teachers and members of the Kentucky Teachers' Retirement System.

PROVISION/MECHANICS: HCR 158/GA urges Congress to enact legislation to repeal the Government Pension Offset and the Windfall Elimination Provision from the federal Social Security Act, and requests that President George W. Bush sign such legislation.

FISCAL EXPLANATION: HCR 158/GA will have no additional fiscal impact.

The following information is provided for illustrative purposes only:

**The Government Pension Offset reduces the amount of Social Security benefits received as a spouse or widow, or as a federal, state, or local government employee who did not pay Social Security taxes. The offset reduces the amount of the Social Security spouse's or widow(er)'s benefits by two-thirds of the amount of the government pension. For example, two-thirds of a monthly civil service pension of $600, or $400, must be used to offset a Social Security spouse's or widow(er)'s benefits. If eligible for a $500 widow(er)'s benefit, $100 per month will be received from Social Security ($500 – $400= $100).

**The Windfall Elimination Provision affects how retirement or disability benefits from work not covered by Social Security are figured. The formula used to figure the benefit amount is modified, resulting in a lower Social Security benefit.

DATA SOURCE(S) / LRC Staff
NOTE NO. / 155.1 / PREPARER / Kim Phelps / REVIEW / DATE / 3/13/02

LRC 2002-2311-hcr158-ga