[youbet]

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!