- buy generic celebrex
- info relatively discount atarax
- article in relation to remeron out of new york
- flexeril without prescription from washington
- buy betnovate from iowa
- article in relation to purchase augmentin online
- tips concerning generic compazine of indiana
- buy xalatan online from nevada
Dear Liz: Could you please address the issue of Social Security for those with pensions? I understand that if you have a pension, you won’t get 100% of the standard monthly Social Security benefit. I believe that this happens even if you only have a defined contribution account. But I’ve never seen this discussed in news reports. Many people are surprised when I tell them this.
Answer: Perhaps they’re surprised because what you’re saying isn’t true.
Defined contribution plans, such as 401(k)s, don’t affect your Social Security benefit at all. Neither do most pensions. The time that a pension might affect your benefit is if you didn’t pay into Social Security while you were earning the pension.
Here’s how the Social Security website puts it: “A pension based on work that is not covered by Social Security (for example, federal civil service and some state or local government agencies, such as police officers and some teachers) may cause the amount of your Social Security benefit to be reduced.”
The reduction can come under one of two provisions. The first, called government pension offset, applies if you get a government pension not covered by Social Security and are eligible for Social Security benefits as a spouse or survivor. The spousal or survivor benefit may be reduced in that case. You can learn more at http://www.socialsecurity.gov/retire2/gpo.htm.
The second provision is the windfall elimination provision, which may reduce your Social Security or retirement benefit if you receive a pension from a job not covered by Social Security. You can learn more at http://www.socialsecurity.gov/retire2/wep.htm.
These provisions were put into place because some people with a pension from a job that didn’t pay into Social Security were getting more Social Security benefits than the system intended. If they worked mainly in the job with the pension, but also had jobs that paid Social Security taxes, their Social Security benefits were often calculated as if they were long-term, low-wage workers. Since Social Security is designed to replace a larger percentage of earnings for low-paid workers — and a smaller percentage for higher-paid workers — these folks wound up with a bigger benefit than their earnings actually justified.
- Playing it safe could mean losing money Dear Liz: The certificate of deposit I owned in my Roth IRA recently matured. I've put the money into a Roth passbook account until I can figure ou...
- Q&A: When to start taking Social Security Dear Liz: You've often talked about delaying the start of Social Security benefits to maximize your check. But what about in the case of a widow? M...
- Social security switch Dear Liz: When I turned 66, I applied for and then suspended my Social Security benefits so that my husband could take spousal benefits based on my...
- “File and suspend” can boost Social Security benefits Dear Liz: I am 63 and not nearly ready to collect Social Security. In fact I probably won't be ready for quite a few years. My husband, who is 64, ...