Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Does a State Pension Reduce Social Security?
Old 03-29-2005, 09:39 PM   #1
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Does a State Pension Reduce Social Security?

Still strategizing how to leave 70 hour weeks behind, and create a pension in a few years ...

If I took a state job, their 'net calculator indicates I could generate a $400/month pension after only working for 5 years, at a relatively low rate of pay (relative to private employment, etc.)

Do pensions from states affect social security benefits in any way, or is this "found" money?

Living in TN, and it appears there are a fair number of jobs with the state that I qualify for. Any suggestions on how to cultivate contacts or otherwise improve chances for state hire will be appreciated. While contrary to my past perspectives, this appears to be a reasonable way to slow down at the end of my career, work 5 more years or so, enjoy life a bit (working near 40 hours a week will feel part-time), get to know my kids again, and cruise to the finish line. We'll see ...

Thanks much.
__________________

__________________
Craig 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: Does a State Pension Reduce Social Security?
Old 03-29-2005, 10:11 PM   #2
Thinks s/he gets paid by the post
Hyperborea's Avatar
 
Join Date: Sep 2002
Location: Silicon Valley
Posts: 1,008
Re: Does a State Pension Reduce Social Security?

Quote:
Do pensions from states affect social security benefits in any way, or is this "found" money?
I think the only pensions that affect SS are the ones earned while not paying SS taxes. *So this is old style federal employee pensions, social security-like payments from other countries systems, etc. *This is under the "windfall elimination provision". Will you be paying SS in that job?
__________________

__________________
Hyperborea is offline   Reply With Quote
Re: Does a State Pension Reduce Social Security?
Old 03-30-2005, 03:39 AM   #3
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 79
Re: Does a State Pension Reduce Social Security?

Greetings Charles:
Quote:
Do pensions from states affect social security benefits in any way, or is this "found" money?
Will the state job pay into Social Security? Some government jobs don't. In any event, you'll receive Social Security benefits in addition to any state pension benefit you're entitled to. Unless you retire due to a disability, your Social Security benefit does not affect your state pension. Also, retirement benefits are generally subject to federal and state income taxes.

Have you looked at the IRS website for the applicable publication? I'm not certain which one it is, but seem to recall it's in the 500's, IIRC. You could get a whole bunch more on the topic.

Bookm
__________________
Bookm is offline   Reply With Quote
Re: Does a State Pension Reduce Social Security?
Old 03-30-2005, 06:33 AM   #4
Recycles dryer sheets
 
Join Date: Nov 2004
Posts: 224
Re: Does a State Pension Reduce Social Security?

You'll want to get SS docs "A Pension From Work Not Covered By Social Security" (SSA Pub # 05-10045) and "Government Pension Offset" (SSA Pub # 05-10007).
__________________
Rich is offline   Reply With Quote
Re: Does a State Pension Reduce Social Security?
Old 04-01-2005, 09:00 PM   #5
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: Does a State Pension Reduce Social Security?

Great advice all around, thank you. Haven't identified the agency yet, but I'll watch for whether the position will include payment of FICA taxes ... and read up on the pub's noted.

Appreciate the help.
__________________
Craig 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
couple social security perinova Young Dreamers 19 05-14-2006 05:13 PM
Social Security Question Momtwo FIRE and Money 6 04-24-2006 09:29 PM
A Solution to Social Security wabmester Other topics 5 02-19-2006 12:34 PM
ARE YOU SURE OF SOCIAL SECURITY idevision Young Dreamers 11 07-27-2005 01:05 PM
Social Security estimate now vs. actual Telly FIRE and Money 8 05-15-2003 03:56 PM

 

 
All times are GMT -6. The time now is 03:11 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.