Ask Larry

Is It Correct That My Retirement Benefits Will Be Reduced?

I am retired from a federal government job (non-appropriated) I was told that upon my receiving my social security benefit that my retirement pay would be offset. However, I have been paying my social security taxes since my employment there.I am led to believe that other retirees have made that same claim but still had their retirement pay reduced. Is there any hidden reasons for that, or is the administration department wrong in factoring that in?

Hi,

If you always paid Social Security taxes on your wages with the government, your Social Security benefit will not be subject to reduction under the Windfall Elimination Provision (WEP). For more information on WEP, see the following pamphlet: https://www.ssa.gov/pubs/EN-05-10045.pdf.

I am not an expert on the Federal Employee Retirement System, assuming that is what's referenced to in your question. That program does pay a temporary annuity supplement in some cases, which stops when the person becomes eligible for Social Security benefits. For more information on that provision, refer to the OPM.gov website: https://www.opm.gov/retirement-services/fers-information/types-of-retire....

Best, Jerry

Posted: 
Nov 26 2016 - 9:15am
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.