If You Hire New Employees Not Covered by Social Security:
The Social Security Administration has at last finalized and posted on its website Form 1945-which is required to be provided by public employers to non-SS-covered employees hired after 1/1/2005-disclosing the potential effects of the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). Social Security's web site contains a new page (www.socialsecurity.gov/form1945) with information on the notice, including how the form can be ordered or downloaded from the site, and how further information can be obtained on GPO and WEP.
As reported in earlier alerts and newsletters, the Social Security Protection Act of 2004 (Public Law 108-203) was enacted last spring and requires State and local government employers to disclose the effect of the Windfall Elimination Provision and the Government Pension Offset to employees hired on or after January 1, 2005, in jobs not covered by Social Security. The law requires newly hired public employees to sign a statement that they are aware of a possible reduction in their future Social Security benefit entitlement and submit the statement to the employer and its pension system. The SSA was required to develop the notice and included many of the suggestions forwarded by NASRA members and other public employer and employee groups. At a meeting with public sector representatives in September, staff from Social Security stated there will be no rulemaking on the notice. They also reinforced that the statute has no enforceable duty (no penalty for noncompliance). SSA officials did state, however, that it might be helpful to keep the notice on file so employers and pension systems could have a record that the employee was advised of GPO and WEP prior to commencing service.
