spouse's social security

[ripper1]

Trying to figure out if my wife is eligible for her full social security benefit. I just retired from a government job and I am receiving a pension. My brother in law says that because I am receiving a government pension my wife's social security benefit will be reduced. I think the way I understand it is she is eligible for entire benefit based on her work record. If she happens to pass away though I would not be eligible for any of her benefit because of Government Pension Offset. Who is right?

 

[Martha]

You are right. Windfall provisions are not applicable to her as she is not collecting a pension based on employment that did not have SS taxes withheld and she is collecting on her own work record. But these provisions are applicable to you.

Government Pension Offset
Windfall Elimination Provision

 

[Martha]

Government pension offset

The third question down also answers your question.

 

[youbet]

Trying to figure out if my wife is eligible for her full social security benefit. I just retired from a government job and I am receiving a pension. My brother in law says that because I am receiving a government pension my wife's social security benefit will be reduced. I think the way I understand it is she is eligible for entire benefit based on her work record. If she happens to pass away though I would not be eligible for any of her benefit because of Government Pension Offset. Who is right?

As frequently happens when these kinds of questions are asked, Martha has pointed to excellent information and given great answers. Thanks.

Your BIL is misinformed.

But ripper 1, you don't specifically state that you did not participate in SS because of your gov't job/pension. GPO and WEP apply to folks who were excused from participation in SS due to their gov't employment status. Some gov't folks do participate in SS and therefore are not affected by GPO and WEP. Your wife's SS status will not be affected in either case. But whether you could collect on her SS, or if your own SS would be reduced, is.

Was BIL's advise given as part of a Thanksgiving get-together? I've noticed lots of bad advise/information is shared at holiday family gatherings! I try to keep conversations at these occasions to things like "refill on wine?' or "can I refresh that drink for you?" or "hey BIL, how about another beer?"

 

[ripper1]

wife's social security benefit

Thank you for your reply, Youbet. I did not participate in SS while a government employee. I do however have 20 quarters of SS while I was in the USMC prior to my employment with the City of Chicago. I now wonder if it is wise to pursue the final 20 quarters needed for benefits. I believe I can go on my wife's benefit for medicare.

 

[youbet]

Thank you for your reply, Youbet. I did not participate in SS while a government employee. I do however have 20 quarters of SS while I was in the USMC prior to my employment with the City of Chicago. I now wonder if it is wise to pursue the final 20 quarters needed for benefits. I believe I can go on my wife's benefit for medicare.

Yes, you can qualify for Medicare through your DW.

Whether it is wise for you to pursue an additional 20 quarters of SS covered employment in order to qualify for SS payments is a function of whether you want/need to work. My DW was in a similar situation. She had a dozen or so quarters of SS credit for part time work during highschool and college. Then she worked as a teacher in Illinois for many years, finally retiring. During that time, she chose to also teach part time on the adjunct facilty of a local university which was SS covered work. So, she wound up with sightly over 40 quarters.

Despite having the required 40 quarters, her SS at 66 yo will only be in the range of $100/mo due to WEP and the short time she was SS employed. In her case, she did the work for the pay and the experience (she always wanted to teach on the college level). It was not an effort aimed at getting SS credit. If it had been, she would consider it a dismal failure since the payout is so low vs the effort expended.

Bottom line is that if you want to go back to work for other reasons, go for it. But I wouldn't do it just to qualify for a small SS payment.

BTW, my dad and several other family members (all deceased) retired from the City of Chicago Civil Service System. It worked out well for them. I hope it works out well for you with the extremely serious underfunding that exists today.

 

[ripper1]

Again, Youbet, thank you for the insight. I think then working for me would be a matter of keeping busy. Yes, my father, grandfather, brother, and several uncles all worked for Chicago. It did work out quite well for them. Yes, the underfunding is a little scary but I think current employees and probably to a lesser extent retirees will have to take a haircut for this thing to survive. It will be a shame if they let this thing implode.

 

[grumpy]

I believe I can go on my wife's benefit for medicare.

t

Ripper,

If your gov't service was like mine, you will be qualified for medicare benefits on your own. My deductions included 1.5% for medicare. Also, my gov't health insurance automatically changes to medicare being the primary and BCBS being secondary next year when I reach 65.

Do you know if your paychecks include the medicare deduction?

 

[Martha]

Federal employees pay into medicare and thus are qualified for the benefits. My Federal Retirement | FERS CSRS Thrift Savings TSP FEHB FEGLI

Medicare issues are a bit more complex for state and local government employees: How State And Local Government Employees Are Covered By Social Security And Medicare If you fall into a hole where you aren't covered on your own record, then you can be covered under your spouse's record.

(An interesting aside: if for some reason a person is not eligible for medicare they can buy into medicare when they reach eligibility age. With a nice big premium.)

 

[ripper1]

Thank you, Grumpy and Martha. I think because I started prior to 1983 I was not eligible to participate in Medicare. I am only 55 so I have a good ten years before I am eligible. My BCBS premium right now for me and my wife is over 700 a month and rising each year.