Retirees Say Provisions Pinch Their Pensions

Efforts to repeal the two provisions have stalled, in large part because of the cost -- billions of dollars over the next decade. Some proposals would extend Social Security coverage to all state and local government employees, but that transition might be difficult to pull off, since many public pension funds rely on stock market investments for income.

Kane appeared at the hearing on behalf of the Massachusetts Teachers Association and gave examples of how the GPO and WEP had lowered retirement income for retirees in that state.

Priya Sara Mathur, a board member for the California Public Employees' Retirement System and a member of the American Federation of State, County and Municipal Employees, described the "frightful shock" that hit two women, former city employees, who lost their spousal benefits under GPO and took a second reduction in benefits because of the WEP.

"It is a situation that is, frankly, intolerable," Kerry said.

Pay Raise for Military

House and Senate negotiators yesterday approved a 3.5 percent pay raise for the military, slightly more than the 3 percent requested by the White House, as part of the fiscal 2008 defense appropriations bill.

The negotiators dropped a House amendment that would have denied funds for the National Security Personnel System, which would more closely link raises for Defense civilians to their job performance ratings. The new system is opposed by unions, which contend it will gut collective-bargaining agreements.

Any modifications to the system will be left to lawmakers who are preparing a bill that authorizes weapons and other Defense programs for next year, congressional aides said.

Stephen Barr's e-mail address isbarrs@washpost.com