When we retire, we think that the amount of the retirement pension will cover most of our expenses as it is the main source of income. But, sometimes, during retirement, there may be situations where the amount is lowered (for example, the minimum pension is collected and the minimum supplement is withdrawn). It is the case of Evelyn Paternostro, an 84-year-old retired teacher in Louisiana, who dreamed of a peaceful retirement after more than 40 years dedicated to education, but she has had to put her retirement on hold and work as a cashier in a store to make ends meet.
As she reported in an interview with CBS News, Evelyn receives the minimum pension along with a minimum supplement in the United States, but due to changes in Social Security requirements, They took away a supplement after the death of her husband. Because of this, his income was reducedwhich forced me to have to return to the labor market to be able to live. “People in the store ask me all the time, ‘Are you doing this for fun?’ Why aren’t you retired?’ Because I need to eat”he explained.
The pension is not enough to cover basic needs
During her career, Evelyn worked as a teacher and principal in the Louisiana public school system, accumulating a pension that she hoped would allow her live with dignity after retirement. Despite this, two Social Security provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—prevented her from receiving the spousal benefits to which she was rightly entitled.
Specifically, the GPO affects those who receive a public pension not covered by Social Security, reducing or eliminating spousal and survivor benefits. This left Evelyn with a loss of income of approximately 2,500 euros per monthwhich is equivalent to 300,000 euros in the last ten years. “It’s a lot of money”, he acknowledged. “It’s more money than I can imagine”.
The WEP, on the other hand, affects those who receive a public pension and they are also entitled to Social Security benefits, which reduces the total amount received on the payroll. Evelyn, like most retirees, did not take into account that this type of regulation could affect the amount. “I was totally taken aback.”, he commented. “I knew I was going to have a teacher’s retirement. But I never really thought about my husband’s income and what that would mean for me.”.
Forced to go back to work
Evelyn’s situation is not unique. According to a report from the National Association of Retirees (NARFE), millions of retired Americans who worked in the public sector have been harmed by the same provisions. This impact is seen compounded by rising cost of livingmedical expenses (in the United States healthcare is different than in Spain) and the lack of sufficient savings. For many, returning to work becomes a necessity.
Evelyn divides her time between her home and her employment in a local storewhere he works several shifts a week to cover his expenses. “I never thought I would need to work at this age”, he confessed. “It’s much harder than I imagined”.
A system that urgently needs reforms
After decades of struggle, the US Congress passed the Social Security Fairness Act on December 21, 2024, which seeks to repeal the WEP and GPO provisions. Even so, the bill still requires President Joe Biden’s signature to become law. Although this reform could benefit thousands of retirees, many criticize its cost, which is estimated to be over $200 billion over the next decade.
Evelyn, like other retirees, continues to face uncertainty about her retirement. “In essence, this money has been stolen from all of us for all these years. It’s not fair”, he concluded.