2 percent Social Security reduction

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Q. Will the 2 percent reduction in employee Social Security tax for 2011 and 2012 reduce the benefit that the employee will receive when he applies for a Social Security benefit?

A. No. Social Security benefits aren’t based on the amount you contribute through taxes. They are based on the number of Social Security credits you have earned, your average indexed monthly earnings (AIME), and the age at which you apply for benefits.

 

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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