Q. In the Dec. 2 article titled “Don’t let these 5 mistakes disrupt your plans,” in mistake number 4, you wrote “If you are covered by CSRS (or FERS and will have a CSRS component in your annuity) and will also be eligible for a Social Security benefit, you’ll be subject to the windfall elimination provision. The WEP reduces the Social Security benefit of anyone receiving an annuity — in whole or part — from a retirement system where he didn’t pay Social Security taxes and has fewer than 30 years of substantial earnings under Social Security.”
A co-worker said they just attended their first retirement seminar, and they may be Federal Erroneous Retirement Coverage Corrections Act eligible (they were in CSRS and placed into FERS without their consent around 1987). They are going to contact our personnel office and have it confirmed that they should be in CSRS. From the article item #4, I am wondering if the following is correct:
If you have more than 30 years of Social Security earnings and get your FERS status changed to CSRS, which would cease you being taxed for Social Security, once you retire and were 62 years old, would you be eligible for a Social Security benefit and not be subjected to the windfall elimination provision?
A. Anyone who receives an annuity — in whole or part — from a retirement system where he didn’t pay Social Security taxes is subject to the windfall elimination provision unless he has at least 30 years of substantial earnings under Social Security. Period.