Annuites, Pensions and SS

[jmhalvo]

Read both because it can be on their own benefit. But it is only an issue for people that have a pension from employment were they did not contribute to social security a quick scan of the Medicare and social security earning numbers will quickly show if someone will be subject ie you see years of no to very little social security earnings and the corresponding Medicare column shows 50k in earnings its due to a position were they did not contribute to social security, you just need to know your state many state pensions the employee still contributes to social security, new federal employees are under FERS and they contribute to SA but older CSRS employees did not obviously since its been many years since a nonFERS employee has been hired its becoming less of an issue.

ok thx. In 10 years I've never run into it. Interesting

 

[Infuego]

nothing stops or denies your SS payments. One is always "entitled" if one worked required quarters.

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Only q is the degree of taxation- the other income can affect that

Not under the windfall elimination act with respect to teachers and public workers that had/ have other careers.

 

[Norwayguy]

ok thx. In 10 years I've never run into it. Interesting

It can be very state specific....I believe a state like Florida a public employee puts into both a pension and social security so no issue. but in Maine and I think 11 other states they do not contribute to social security and just have the pension.

 

[jmhalvo]

Not under the windfall elimination act with respect to teachers and public workers that had/ have other careers.

good pt. Thx.................

 

[Newby]

It can be very state specific....I believe a state like Florida a public employee puts into both a pension and social security so no issue. but in Maine and I think 11 other states they do not contribute to social security and just have the pension.

KY is pension only for teachers.

 

[Marrold62]

There are two SS issues with Public School Teachers. If their School District pays BOTH SS & State Pension, they will avoid the Offset and have minimal impact from the Windfall Elimination Provision. If they pay only into the State Pension, they are impacted by both issues depending on whether they have their own 40 quarters for SS. The Offset effects the spousal SS benefit they can receive and the Windfall causes a reduction in SS benefits even if they have 40 quarters but they will collect the majority of the SS benefit. Details of both issues can be found on the SS website.