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-- DH, public college teacher in SC, does.
-- DS, public school teacher in MA, doesn't. (But he pays 11% of each paycheck into the MA Teachers' Retirement Fund instead.)
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You can't always get what you want, but if you try sometimes, you might find you get what you need.
3 people choose "No SS for me". Are you guys/gals not US citizens?
There is a "Windfall Elimination Provision" that kicks in when someone is receiving a pension from a job where social security taxes were not withheld (like some teachers). If the pension is large enough, it eliminates the spousal social security amount.
__________________ You should not assume that I have a clue about anything I post. If you need a lawyer, go get your own.
-- DS, public school teacher in MA, doesn't. (But he pays 11% of each paycheck into the MA Teachers' Retirement Fund instead.)
Thanks astromeria. I didn't know that.
About your DS: The 11%, is that his contribution, or 5.5 of his and 5.5 match by the state? If all his, does he get any matching from the state?
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Originally Posted by Gumby
There is a "Windfall Elimination Provision" that kicks in when someone is receiving a pension from a job where social security taxes were not withheld (like some teachers). If the pension is large enough, it eliminates the spousal social security amount.
Thanks. Didn't know that either. Other than some teachers, are there other type of jobs that do not pay SS tax?
Gumby this is so true. My DH receives a government pension and will receive no social security. (He will get Medicare since he paid into the system). If I die first, he will receive a smallerl percentage of my SS due to his pension and the Windfall Elimination...
I will get my full SS benefit...
Actually, I had the wrong terminology. The WEP applies when you are receiving a governnment pension and your own social security. The "Governmental Pension Offset" applies when you are receiving a government pension and spousal benefits. Here is the link to the Social Security Administration site where the GPO is explained.
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Join Date: Mar 2005
Posts: 5,579
Quote:
Originally Posted by Gumby
There is a "Windfall Elimination Provision" that kicks in when someone is receiving a pension from a job where social security taxes were not withheld (like some teachers). If the pension is large enough, it eliminates the spousal social security amount.
Close Gumby.....
The Windfall Elimination Provision applies to the persons own SS earnings. So that folks, like public shcool teachers, who earned most of their income over their lifetime in non-SS jobs don't benefit from the SS formulas that are more generous to low income workers, their benefits are calculated using unique formulas. The combination of these less generous formulas and their minimal contributions into the SS system results in very low SS payouts.
If a gov pension recipient has substantial earnings within the SS system, for example they worked two jobs, teaching and another, year around for many years, then this does not apply.
The other provision is called the Spousal Offset. It says that for folks receiving gov pensions, 67% of that gov pension offsets their spousal SS. So if spouse's SS = $20K, your half would be $10K. But if your gov pension is $15K or more, it would totally offset that and you'd get zero.
It's all on the SS site.
My estimate for DW's SS comes out so low that her Medicare payment will be greater and she'll have to mail them a check!
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DW paddling the Kankakee River........
What made you think Sam was asking you? Or were you just jumping at the chance to get that out in front of us, young lady!
Well, Sam was asking why some people said they had no social security. I am retired, I just can't draw SS yet.
Audrey
Edited to add: Oh, I see - I was supposed to go look up what it might be when I'm 62 or 65 or whatever. Well, that's still 15+ years away. For planning purposes I've always assumed it would be 0, or close to 0. So whatever I get will just be a bonus as far as I'm concerned, and I'll probably have to pay so much income tax on it that it'll be a mere pittance.
Other than some teachers, are there other type of jobs that do not pay SS tax?
I worked for a public emplyer and no SS taxes were taken out. Other jobs I had before that didn't give me enough quarters to collect anything. I could take a job now that pays in to get enough quarters, but it's not worth it to me - I'm retired and want to stay that way!
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Join Date: Mar 2005
Posts: 5,579
Quote:
Originally Posted by Patrick
I worked for a public emplyer and no SS taxes were taken out. Other jobs I had before that didn't give me enough quarters to collect anything. I could take a job now that pays in to get enough quarters, but it's not worth it to me - I'm retired and want to stay that way!
Did you get enough credit for Medicare?
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DW paddling the Kankakee River........
Nice, user-friendly calculators right at the SS web site.
Ok, Im gonna look again, but I thought the calculator on the SS website assumed your income remains constant from now until eligible (like the annual statements they send). I keep thinking if I don't put in another dime, I'll get the same amount at 62!
Does anyone know of a calculator or formula that's more flexible?
__________________ "there is reasonable money to be made in lending people money to buy houses. I refuse to believe that there is, really and sustainably, enough money in it for the originators and the servicers and the insurers and the bond underwriters and a hundred different tranche buyers and swap dealers and my pet kitty to take a piece of the interest." -Doris Dungey (Tanta) of Calculated Risk
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