Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#16
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#17
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Issue is that social security has no visibility to your income while covered by a pension and NOT paying social security. it is about earnings. A person in the non-social security plan was prevented from taking a social security covered job for a reduce number of years and getting that income replaced at the low income rate of higher replacement.
Forbes example....Now let’s suppose you receive what’s called a “non-covered” pension, which is work where no Social Security tax is withheld. These pensions include teachers, public sector workers such as firefighters, police , state, local or county employees. Let’s also assume that you earn $84,000 in that job and have a side job subject to Social Security withholding and earn $12,000. When you apply for Social Security benefits, to Social Security you look like a “low earner”, which you are not. Social Security does not have access to information relating to your “non-covered” pension. Because of that, when Social Security calculates your benefit, you have a replacement percentage of 90%. If your Social Security benefit was calculated as if all your earnings were in the Social Security system on total earnings of $96,000, your replacement rate would be 40%, not 90%. Since you really are not a low earner because your total income is $96,000, Social Security reduces your monthly Social Security benefit by the Windfall Elimination Provision (WEP) to adjust for the higher replacement percentage which you would not be entitled to if all of your earnings were in the Social Security system. |
#18
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Goal of the programs were to give those not paying social security when covered by pensions equal treatment of a similar salaried social security paying person, not the larger pension benefit plus the entire social security payment. Goal was to give similar total payouts like the pension /social security combination paid the same as the same number of years and same salaried social security tax payer.
The GPO reduction in Social Security benefits is 2/3rds of the monthly amount of the public sector government retirement benefit you receive. Of note, if you receive a lump sum payment from a public sector government pension, the lump sum will be converted into a monthly annuity benefit by Social Security. For example, let’s assume you and your spouse have both reached your full retirement age for Social Security purposes. That would mean you are between the ages of 66-67. Your public sector government pension is $3,000/month and you have no Social Security benefit of your own. As a spouse, you are entitled to a spousal benefit of 50% of your spouse’s full retirement age Social Security benefit. Assume your spouse’s Social Security full retirement age benefit is $2,500, so therefore you would be entitled to $1,250. Since 2/3rds of your public sector government pension is $2,000 ($3,000 x 66%) and is greater than the spousal benefit of $1,250, the spousal benefit is reduced to zero. Now let’s assume your public sector government pension is $1,500, then you would be entitled to a $250 spousal benefit. Here’s the math: $1,500 x 66% = $1,000. The Social Security spousal benefit reduced by the GPO of $1,000 produces a spousal benefit of $250. From this last example you can see that the full 50% spousal benefit of $1,250 is made up of $1,000 from your public sector government pension and $250 from Social Security. As you can see from the above example, the GPO can reduce your Social Security spousal benefit to zero. |
#19
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OMG, this makes my head spin. I barely can follow what is being said; So, let me pose a question, and if anyone can answer it I will be grateful.
Let's assume I worked for a branch of government for about 15 years, about 40 years ago. FERS, not CSRS. And let's assume I get a small pension from that, say, 500 a month. I will be starting SS soon, past full retirement age. Will the 500 cause a reduction in my SS? When I die, will this affect my spouse? Last edited by MplsPete; 12-24-2024 at 12:33 AM. Reason: Spelling. |
#20
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But, the most absurd situation is that military people can retire after 20 years, and then immediately return as a GS-15 or SES civilian employee and earn another full pension. They have an inside track with military preference, and sometimes they return in one day to the same desk.
Anyone could have joined the military (unless a medical condition, etc). And yes members of the armed services can retire after 20 years but perhaps what many don't know is the hours put in during those 20 years, the sacrifices, the works conditions, and NO overtime to name a few. And many don't make it to the 20 years. cheers... |
#21
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My husband worked for the VA and is collecting a pension, which he paid into, from there. He also worked many part time jobs and paid into social security. Currently he gets 1/3. Of money he paid into social security. Is that fair, no.
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#22
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#23
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#24
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__________________
Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works. Confirmation bias is real; I can find any number of articles that say so. Victor, NY Randallstown, MD Yakima, WA Stevensville, MD Village of Hillsborough |
#25
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Maybe this is something DOGE will be interested in.
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#26
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My wife worked as a teacher in Missouri and retired and gets a pension from the state of Missouri. She also worked outside of the teacher Missouri pension system and paid into social security with 40 credits.
That sir is two different govt agency’s. Missouri and federal. The WEP system also restricted her from getting survivor benefits from social security if I were to pass away. Point is she paid into SS to the max. I was an airline pilot with a pension. and a 20 year military retiree. Should my military be reduced or eliminated? Think about it! |
#27
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#28
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#29
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#30
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Probably need to go to SS office, I sure it in you’re records and they compensated for that but never know worth checking if you can put up with line at SS office.
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