Browsing: earnings limit

Q: Has the government considered raising the earnings limit, given the financial strain many seniors are facing? Why does COLA have to be tied to the earnings limit? A: The method used to determine the Social Security earnings limit and cost-of-living adjustments are governed by the same law, and are based on the CPI-W. Because the CPI-W has stayed in negative territory, no adjustments were made  in 2010, and none will be made in 2011.

Q: Will you please explain when the “earnings test” on the Social Security Supplement takes effect for Federal Employees Retirement System employees? What will be the effective date when the supplement is reduced and/or halted if you’ve exceeded the earnings limit? How are your after-retirement earnings reported, how often and to whom? Will the supplement be reinstated if your after-retirement earned income returns to below the earnings limit? A: For a good overview of how the Social Security earnings limit applies, including how things are handled if you retire in the middle of a year, go to www.socialsecurity.gov/pubs/10069.html. The Social…

Q: I plan to retire in June 2011 on my 62nd birthday. If I work up until that date and make approximately $20,000 will my Social Security benefits be reduced? A: The Social Security Administration has a special “first year” rule that lets them pay a full Social Security check for any whole month they consider you retired, regardless of your yearly earnings. In other words, the pay you received before retiring won’t count against the earnings limit. Note: In 2010, if you are below full retirement age, you are considered retired in any month that your earnings are $1,180…

Q: As a federal firefighter covered under the Federal Employees Retirement System, I have to retire at age 57. I have been told that that under FERS, we get a Social Security supplement and as such we are limited in what we can earn after retirement. Is this true? I know that when one retires and draws Social Security, one is limited to $14,160 per year in earnings from other sources. Is this the case when we are forced to retire at 57? A: Yes, it is. In 2010, if you were to earn more than $14,160 from wages or…

1 3 4 5