collecting full social security and military retirement?

[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

 

[Leonidas]

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.

 

[samclem]

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?

 

[Nords]

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.

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.

 

[Buckeye]

Nords - WIll Social Security confirm the wage credits were applied if I give them a call? I have never hear of this before.

 

[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.

 

[tiredofwork]

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.

 

[Dreamer]

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.

 

[samclem]

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.

 

[OAG]

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.

 

[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.

 

[Jarhead*]

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)

 

[miatagirl]

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.

 

[Nords]

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"...

 

[rogerc1944]

If someone is collecting 100% disability from the VA for a service related impairment, are they also eligible to collect social securty retirement?

 

[OAG]

Yes.....