Q. I retired in 2006 after 39 years of federal service under CSRS. I receive a retirement annuity every month. I’m doing some contractor work and have over 10 years under Social Security. If I apply for Social Security benefits, will my CSRS monthly annuity be decreased by the Social Security amount? If so, what benefit is it to pay Social Security taxes if I won’t ever apply to receive them? Also, do you have to pay this tax?
A. Yes, you have to pay Social Security taxes even if you never receive a benefit. However, if you have earned at least 40 credits (10 years), you’ll be entitled to a Social Security benefit. Because you are CSRS retiree, you’ll be subject to the windfall elimination provision. The WEP will reduce but not eliminate that Social Security benefit.