Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
collecting full social security and military retirement?
Old 01-22-2007, 07:00 PM   #1
Confused about dryer sheets
 
Join Date: Jan 2007
Posts: 4
collecting full social security and military retirement?

Hi Very new to the boards however I have a question that needs answering. What a hit in the forehead I just received. A friend told me that when my husband reaches retirement age he will not be able to collect the full amount of social security and his full military retirement. Tell me it ain't so??I have been under the assumption he would be able to collect both fully. Are there any military retirees out there who can answer this question? After getting out of the service he now works for a private business, no 401 or anything like that. Looking foreward to hearing from you. Thanks Judy
__________________

__________________
miatagirl is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: collecting full social security and military retirement?
Old 01-22-2007, 07:17 PM   #2
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: collecting full social security and military retirement?

There's more than a few retired military people here who can answer this with more certainty, but I think your friend got it wrong. He/she may be thinking of the windfall elimination and/or the government pension offset. But I'm reasonably certain that there's no offset for anyone collecting a military pension.
__________________

__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 08:16 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,616
Re: collecting full social security and military retirement?

Miatagirl,

Well, it depends on what you mean by "retirement age." If your husband is on active duty, he'll get his military retirement immediately upon retiring from active duty (usually at 20+ years of service). He will not be eligible for SS until he reaches aprox 62 yrs plus (depending on his age now and how much he wants to reduce his SS benefits by taking them early). SS and his military retirement are entirely independent.

There is a linkage between the two programs when it comes to the Survivor's Benefit Program, but that is a whole different issue (it is a program that allows his spouse to keep receiving a portion of his retirement pay if he dies before she does. He'll have to choose to enroll in this program, it is like insurance, and it costs a stiff amount in monthly premiums. I think it is worth it, so I took the SPB after careful consideration of our situation). Anyway, at present, the payments to SBP beneficiaries decrease when the beneficiary is eligble for SS. That provision is being phased out, and soon the SBP payments will stay the same even after the spouse is receiving SS--so don't worry about it.

Does that answer your question?
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 09:00 PM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: collecting full social security and military retirement?

Quote:
Originally Posted by miatagirl
Hi Very new to the boards however I have a question that needs answering. What a hit in the forehead I just received. A friend told me that when my husband reaches retirement age he will not be able to collect the full amount of social security and his full military retirement. Tell me it ain't so??I have been under the assumption he would be able to collect both fully. Are there any military retirees out there who can answer this question? After getting out of the service he now works for a private business, no 401 or anything like that. Looking foreward to hearing from you. Thanks Judy
Welcome to the board, Judy, and I think you need a new "friend".

Military retirees from active duty start drawing their pension the month after they retire. Reservists & National Guard have to wait until age 60. Of course there are exceptions to these rules (like the Temporarily Disabled Retired List) but they're very unusual and probably amount to a few out of a million.

Military retirees actually earned MORE Social Security credits through the "military wage credit" program. Here's text from the Social Security website: "Military service wage credits: Credits recognizing that military personnel receive wages in kind (such as food and shelter) in addition to their basic pay and other cash payments. Noncontributory wage credits of $160 were provided for each month of active military service from September 16, 1940, through December 31, 1956. For years after 1956, the basic pay of military personnel is covered under the Social Security program on a contributory basis. In addition to the contributory credits for basic pay, noncontributory wage credits of $300 were granted for each calendar quarter, from January 1957 through December 1977, in which a person received pay for military service. Noncontributory wage credits of $100 were granted for each $300 of military wages, up to a maximum credit of $1,200 per calendar year, from January 1978 through December 2001."

The program ended in 2002 but your spouse was probably credited with his years and will receive them as part of his SS benefits at age 62 or higher. Deciding "when" to take those SS benefits is the subject of a number of threads already beaten to death on this board.

Quote:
Originally Posted by samclem
He'll have to choose to enroll in this program, it is like insurance, and it costs a stiff amount in monthly premiums. I think it is worth it, so I took the SPB after careful consideration of our situation). Anyway, at present, the payments to SBP beneficiaries decrease when the beneficiary is eligble for SS. That provision is being phased out, and soon the SBP payments will stay the same even after the spouse is receiving SS--so don't worry about it.
SBP is a whole 'nother hairball, especially for Reservists below age 60, so your best bet would be to keep him healthy for a while. My spouse expects to get her own pension so she declined SBP on my military pension.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 09:17 PM   #5
Thinks s/he gets paid by the post
 
Join Date: May 2006
Location: Largo
Posts: 1,945
Re: collecting full social security and military retirement?

Nords - WIll Social Security confirm the wage credits were applied if I give them a call? I have never hear of this before.
__________________
Buckeye is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 09:46 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,616
Re: collecting full social security and military retirement?

Nords,
- I checked out the SSA web site in the past, and I came away with the impression that most people drawing a military pension would not receive the "special military service credits."
Here's the SSA web site I visited: http://www.ssa.gov/retire2/military.htm

The catch appears at the bottom of the page:

"You cannot receive credit for these special extra earnings if you are already receiving a federal benefit based on the same years of service. There is one exception: If you were on active duty after 1956, you can still get the special earnings for 1951 through 1956, even if you're receiving a military retirement based on service during that period."

As I read it, military retirees are "receiving a federal benefit" (their retirement check) "based on the same years of service." The "exception to the rule" for '51 through '56 made it more apparent to me that these extra credits are primarily for those who separated from the service without getting a pension.

I hope I'm wrong. Anyway, we're not talking about much money in actual "extra" SS benefits--maybe enough to pay for dinner out once per month.

__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 10:13 PM   #7
Recycles dryer sheets
tiredofwork's Avatar
 
Join Date: Nov 2005
Posts: 62
Re: collecting full social security and military retirement?

Quote:
Originally Posted by samclem
Nords,
- I checked out the SSA web site in the past, and I came away with the impression that most people drawing a military pension would not receive the "special military service credits."
Here's the SSA web site I visited: http://www.ssa.gov/retire2/military.htm

The catch appears at the bottom of the page:

"You cannot receive credit for these special extra earnings if you are already receiving a federal benefit based on the same years of service. There is one exception: If you were on active duty after 1956, you can still get the special earnings for 1951 through 1956, even if you're receiving a military retirement based on service during that period."

As I read it, military retirees are "receiving a federal benefit" (their retirement check) "based on the same years of service." The "exception to the rule" for '51 through '56 made it more apparent to me that these extra credits are primarily for those who separated from the service without getting a pension.

I hope I'm wrong. Anyway, we're not talking about much money in actual "extra" SS benefits--maybe enough to pay for dinner out once per month.
You're wrong, unless the service was during the period 1940 Through 1956. This exclusion from the extra credits applies only during that period.
__________________
tiredofwork is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 10:48 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2005
Posts: 2,556
Re: collecting full social security and military retirement?

Quote:
Originally Posted by Buckeye
Nords - WIll Social Security confirm the wage credits were applied if I give them a call? I have never hear of this before.
Yes, Social Security can confirm that the wage credits were applied. They do not always make a difference. It could have been a low year that was dropped in the computation of your benefits.
__________________
Dreamer is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-22-2007, 10:55 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,616
Re: collecting full social security and military retirement?

Tiredofwork,

I see. The paragraph I cited applies only to persons with service between 1940 and 1956, not to the entire program. Great!

Let's see: $1200 extra credits per year for approx 17 years = I'll get $18 more each month (according to the SSA caclulator, in today's dollars). Better than nothing!

Thanks for the correction.

Buckeye,
The SSA page I found indicated these extra credits won't be added until you apply for benefits.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 07:00 AM   #10
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Re: collecting full social security and military retirement?

AD retiree will draw his full Military Retired Pay AND full SS benefits. Additionally, he can draw any other civilian employment benefit 401k etc.,

I know as I is one for the past 28 years.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 07:32 AM   #11
Thinks s/he gets paid by the post
Eagle43's Avatar
 
Join Date: Jan 2005
Location: DFW
Posts: 1,883
Re: collecting full social security and military retirement?

I am doing it; getting full social security (from age 62) + mil pension + wife's social security. The great thing is all three of these checks increase a tad each year. Life is good.
__________________
Resist much. Obey Little. . . . Ed Abbey

Disclaimer: My Posts are for my amusement only.
Eagle43 is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 08:18 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: collecting full social security and military retirement?

Quote:
Originally Posted by Eagle43
I am doing it; getting full social security (from age 62) + mil pension + wife's social security. The great thing is all three of these checks increase a tad each year. Life is good.
Eagle: Glad to hear that you are receiving your checks on time, and
cola'd.

I always attach a note at IRS time to make sure that Nords and Eagle43
get their portion out of my payment. 8)
__________________
Jarhead* is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 08:43 AM   #13
Confused about dryer sheets
 
Join Date: Jan 2007
Posts: 4
Re: collecting full social security and military retirement?

Thank you to all that replied. That sure lifts a big burden off my mind. I was ready to have to re calculate our whole retirement budget. Sure it is 12 or so years away but it does come fast.
__________________
miatagirl is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 11:56 AM   #14
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: collecting full social security and military retirement?

Quote:
Originally Posted by Jarhead*
I always attach a note at IRS time to make sure that Nords and Eagle43 get their portion out of my payment. 8)
Thanks, Jarhead!

I always check the block on my tax return to send money to the "California Golf Course Beautification Program"...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 01:37 PM   #15
Dryer sheet aficionado
 
Join Date: Jan 2007
Posts: 29
Re: collecting full social security and military retirement?

If someone is collecting 100% disability from the VA for a service related impairment, are they also eligible to collect social securty retirement?
__________________
rogerc1944 is offline   Reply With Quote
Re: collecting full social security and military retirement?
Old 01-23-2007, 01:58 PM   #16
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Re: collecting full social security and military retirement?

Yes.....
__________________

__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Reply

Tags
social security


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Former Military Social Security credits - interesting Fireup2020 FIRE and Money 1 04-10-2007 10:24 PM
Social Security statements after FIRE Nords FIRE and Money 13 08-09-2005 01:38 PM
How people find us... asian carp?? dory36 Forum Admin 4 05-27-2005 01:07 PM

 

 
All times are GMT -6. The time now is 07:39 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.