By Reg Jones
May 21st, 2013 | Uncategorized
Q. I retired in 2001 from the FAA under CSRS. I have 33 quarters of Social Security. If I go back to work and earn an additional seven quarters and apply for Social Security benefits, will that same amount of money be subtracted from my annuity?
May 14th, 2013 | Uncategorized
Q. I plan to begin collecting Social Security at age 66 in CSRS. I have met my 40 quarters and 30 substantial salary requirements. Additionally, I took a two-year break to work in the public sector. When I retire at age 69 with 40 years’ service and begin collecting my CSRS annuity, will I be able to collect Social Security?
May 14th, 2013 | Uncategorized
Q. I retired under full CSRS (none offset) in January 2010 with 35 years’ federal service as a GS 14/10. I am 59 and don’t have the 40 credits required to receive Social Security benefits when I turn 62.
Is it worth it to take a part-time job just to get my 40 credits in, or will there be a reduction to my federal retirement that will hurt more than it will help? I haven’t earned very much in the private sector — just a few years before I became a CSRS employee in 1977, including the time I served in the Army, which I bought back to add to my CSRS time (included in the 35 years), but still paid a very small amount to Social Security while serving in the Army.
I have an opportunity to start a small business (~$10,000 per year).
Would it be better to have the business in my wife’s name to add to her Social Security rather than affect my CSRS? Or will I expect to see a small Social Security check when I hit age 62 if I get my 40 quarters in with Social Security?
Q. I received a refund of my CSRS contributions when I separated from federal service in 1993. Four years later, I returned to federal service. I am CSRS offset.
Because I withdrew my contributions from CSRS, and federal service where Social Security taxes are withheld is not affected by the windfall elimination provision, will withdrawing CSRS contributions change my Social Security benefit when I retire?
Q. I am retired under CSRS. I am 60. I have four years of military time that I have not paid back.
I have 22 quarters of Social Security. If I start working in the private sector, I will not acquire 40 credits by my 62nd birthday. Can I still have my CSRS retirement reduced if I acquire 40 credits after my 62nd birthday?
Q. My husband worked for the government for 25 years under CSRS and receives a pension. When he retired, we applied for spousal benefits because I had no qualifying employment. He then went to work in the private sector and will complete his 30 years of substantial earnings for Social Security next year. When he retires, he will receive another pension from his private job. As we understand it, we should not be affected by the windfall elimination provision. However, we are confused by the government pension offset. Will he not be entitled to draw his full Social Security at age 66 or later? How will it affect my half of his Social Security payments? How will it affect my spousal benefit of his federal pension should he die before I do? Am I correct in understanding that the pensions are not considered earned income and should not reduce the Social Security amount?
Q. I retired on disability in 1981. I have 30 years of Social Security, 27 substantial. I understand the windfall elimination provision does not apply to me, as I retired on disability before this law took effect, in 1984.
Q. I have 22 years of service under FERS and 10 years under straight CSRS before 1977. I will be 64 this month. The windfall elimination provision chart on the Social Security site estimates the WEP reduction based on age 62 (and the number of years paying into Social Security at that age).
Does that mean that no matter how many more years I work, the WEP reduction will remain as it would have been at age 62 and less than 20 years paying into Social Security? Does it also mean the extra years worked will not count toward reducing the WEP reduction? I called Social Security, but the agent was not sure.
Q. I retired from the FAA in 2003 with 21 years of service, and I receive 50 percent of my base pay. I also am qualified for Social Security. I bought back my military service. I know my Social Security benefits will be lowered as I receive a pension from OPM. I am planning on taking my Social Security benefits when I turn 62. Will I still receive my 50 percent pension from OPM?
Q. I am a former federal CSRS employee who lost employment when the Philadelphia Naval Shipyard was closed in 1995. I had about 15 years of service and left my contributions in the system. I was born in July 1956 and am 56. When can I apply for a pension, and what can I expect? Would I take a deferred pension? Also, I have met my 40 quarters for Social Security and have been employed for about 17 years with the School District of Philadelphia. I am thinking about retiring when I am 62 but would like to know my options as far as the WEP and such. Can you help?
Q. I started work at 16 during the summer to help pay for college.
From 1966 to 1974, I made very low incomes but contributed to Social Security. Then I worked for the Forest Service and became a CSRS employee for five years. I resigned and got a refund on my retirement because I did not think I would work there again. But because I had five years in, the Forest Service says I still have a vested interest in CSRS and will pay me $202/month for that vested service when I retire.
Between 1990 and 1999, I stayed home with my children and occasionally worked as a substitute teacher — once again, low wages that contributed to Social Security. That means I have only about 11 years of substantial earnings toward Social Security. The windfall elimination provision states that my Social Security benefits cannot be reduced more than half of my pension. What pension? The $202 I get from CSRS, the $901 combined pension from the government or the $647 from Social Security? Can’t government brochures be more specific?
Q. I’m trying to understand how my retirement income will be affected by the government pension offset and windfall elimination provision.
I’m a CSRS Offset employee (55 years old) contemplating retirement in the next year with more than 32 years’ service. I also receive a monthly spousal annuity from my deceased wife’s CSRS service. I understand that when I turn 62, my own CSRS pension will be reduced by whatever Social Security amount I’m eligible for (should be more than 30 years of Social Security earnings), but I just read something indicating that my spousal annuity also might be reduced at age 62 due to the windfall elimination provision. Can you shed light on how this will unfold?
Q. I would like to know who is responsible for informing employees who work for the government of the windfall elimination provision. I was not told about the WEP until I went to the Social Security office to file for my Social Security retirement. My Social Security benefits were reduced by more than $1,000 per month. I worked hard all my life with two jobs for over 30 years. For what? Just to have my benefits go to someone who did not work but gets benefits. How are you to be informed of this law?
Q. I retired from CSRS on disability. I have my 40 quarters. My wife is retired from Social Security. Can I draw from her account at age 62?
Q. I retired in 2006 under CSRS as an air traffic controller. I had 33 years of government service between the Air Force and the Federal Aviation Administration. I started receiving Social Security disability payments this month. I receive a periodic statement from the Social Security Administration stating what my benefits are and how much I would receive each month. The statement showed $1,200 a month. I receive $705 a month instead. I’ve earned enough credits working prior to and after my CSRS career. Why am I penalized when I have earned both benefits in my opinion?
Q. The following statement was made in an answer to a question ask about post-1956 deposit: “You can’t get a refund of the deposit you made for your active-duty service. What’s done is done. If you retire at age 62 and aren’t eligible for a Social Security benefit at that time, you’ll never have to worry about losing those years and having your annuity recomputed.”
I will retire at age 60 and have paid in a post-1956 deposit. I am in CSRS and will have 41 years and eight months with the post-56 deposit (eight years, six months of military service). I have worked for 40 quarters and am eligible for Social Security (military service and work prior to the military). However, due to the windfall elimination provision, I do not plan to ask for Social Security benefits until I am 65 or older. Will my annuity be recomputed after I reach 62 even though I have no intention of requesting my Social Security benefit until 65 or 70? Can I expect some kind of reduction in my annuity? I understand my Social Security benefit will be reduced by two-thirds once I apply for it.
A. Because you made a deposit for your active-duty service, you’ll not only get credit for that time in your annuity computation but your CSRS annuity won’t be affected no matter when you apply for a Social Security benefit. However, as you noted, your Social Security benefit will be reduced because of the windfall elimination provision. That’s because you will be receiving an annuity from a retirement system where you didn’t pay Social Security taxes and have fewer than 30 years of substantial earnings under Social Security.
March 20th, 2013 | Uncategorized
Q. I expect to retire with income from a state employee retirement, CSRS offset and Social Security paid while working other than the CSRS offset Social Security.
To what extent will the windfall elimination provision apply? Since there are two Social Security eligibilities, does the WEP apply to both? Will the CSRS offset Social Security portion be reduced by the WEP as well as the Social Security earned when working for nongovernment employers?
A. At age 62, your annuity will be reduced automatically by the amount of Social Security benefit you earned while a CSRS offset employee. If you have fewer than 30 years of substantial earnings under Social Security, you’ll also be subject to the windfall elimination provision. If you are subject to the WEP, it could affect the amount of Social Security benefit attributable to your CSRS offset service.
March 18th, 2013 | Uncategorized
Q. I retired in 2011 with 30 years and three months employment with the Postal Service at the age of 56 years and six months with a CSRS pension. I had 32 quarters of paying in to Social Security when I retired. I worked part time from June 2012 to October 2012 for an insurance company and earned about $6,200. How many more quarters do I have to go to receive a supplemental Social Security pension, and is it also true that I will only receive about one-third of what I would normally be entitled to?
A. You have already earned four credits in 2012. If you earn $4,640 in 2013, you’d get four more credits and be eligible for a Social Security benefit.
Yes, it’s true that your Social Security benefit would be less than it would have been if you didn’t receive an annuity from a retirement system where you didn’t pay Social Security taxes. Because you do — and because you’ll have fewer than 30 years of substantial earnings under Social Security — you’ll be subject to the windfall elimination provision.
March 13th, 2013 | Uncategorized
Q. I am not eligible for Social Security retirement. I have 35 quarters of coverage and need 40. I was told if I waited until after age 62 and then earned my 40 quarters and became entitled to Social Security retirement, I would not receive a reduction to my CSRS retirement check. Is this true?
A. As a CSRS retiree, you would not have your annuity reduced if you were eligible for a Social Security benefit. However, because you are receiving an annuity from a retirement system where you didn’t pay Social Security taxes, you’d be subject to the windfall elimination provision. The WEP would reduce your Social Security benefit if you had fewer than 30 years of substantial earnings under Social Security.
March 2nd, 2013 | Uncategorized
Q. I worked for an independent federal agency from 1977 to 1989, which had its own retirement system that was neither CSRS nor FERS. I had a break in service for one year then returned to work for the federal government (Transportation Department), where I was erroneously placed in FERS by human resources. In 2006, following a FERCCA ruling that took over 2½ years, I chose to be placed in CSRS Offset rather than FERS. I paid Social Security as a federal employee (plus through part-time jobs dating back to 1970) until I retired in 2010 with 32 years of service. I was told I would receive a reduction to my pension and/or Social Security at age 62 due to the offset. I have also read that there will be no reduction because I have more than 30 quarters of Social Security. Should I file for Social Security at age 62 since I will receive a possible reduction, or will I receive no reduction in Social Security benefits?
A. Because you are a CSRS Offset retiree, at age 62, your annuity will automatically be reduced by the amount of Social Security benefit you earned while a CSRS Offset employee. Further, you may be subject to the windfall elimination provision, which reduces the Social Security benefit of anyone receiving an annuity in whole or part from a retirement system where he didn’t pay Social Security taxes and has fewer than 30 years (not 30 quarters) of substantial earnings under Social Security. To see how that might apply to you, go to http://ssa.gov/pubs/10045.html.