Affected Employees Must Be Warned About Offsets

Law Requires Notice for Those Not Covered by Social Security

NEA has long argued the need for the Social Security Administration and employers to advise employees in jobs not covered by Social Security of the impact of offsets on their Social Security benefit entitlement. Now public employers in non-Social Security states  and districts must alert new employees affected by Social Security offsets.

Section 419(c) of Public Law 108-203, the Social Security Protection Act of 2004 requires State and local government employers to disclose the effect of the Windfall Elimination Provision and Government Pension Offset Provision to employees hired on or after January 1, 2005 in jobs not covered by Social Security.

These employees also must sign a statement that they are aware of a possible reduction in their future Social Security benefit entitlement.

Employers do not have to create the notice. The Social Security Administration has produced form SSA-1945, Statement Concerning Your Employment in a Job Not Covered by Social Security for new employees to sign. This form, along with instructions for its use, can be found at www.socialsecurity.gov/form1945.

Learn more about how the Windfall Elimination Provision and Government Pension Offset Provision unfairly penalize public employees and read about the history of these offsets.