Q: Can you explain the differences between the Windfall Elimination Provision and the Government Pension Offset? A: The windfall elimination provision reduces (but doesn’t eliminate) the Social Security benefit of anyone who receives an annuity from a retirement system, such as CSRS, where he didn’t pay Social Security taxes and has fewer than 30 years of substantial earnings under Social Security. The government pension offset reduces the Social Security spousal or survivor benefit of anyone who is receiving an annuity — in whole or part — from a retirement system, such as CSRS (but not CSRS Offset), where he didn’t…
Browsing: SOCIAL SECURITY
Q: I was a civil service employee with DHUD from 1969 to 1978. I withdrew retirement funds at that time and have contributed to Social Security since then. I am 64 and am considering going back to work for a government agency with civil service retirement. Can I buy back into civil service retirement and, if so, how long would I have to work and contribute to CSRS to be eligible to retire with civil service retirement? A: If you returned to work for the government, you would be placed in CSRS Offset (CSRS and Social Security) with the option…
Q: I am 65 with a birthday in July. I plan on retiring next year (FERS), and am considering submitting for my Social Security benefits back to my 66th birthday, in December 2011. I believe that means I will collect my four months of previously earned checks next year, thereby pushing my tax liability for that money into 2012. Am I misreading the Social Security website (it says six months max back payment), or is this possible? A: What you read on the Social Security Administration website is correct. However, while you are reviewing the tax implications of applying for…
Q: I am 68 and still work as a CSRS Offset civilian. I have about 17 years of government service, 10 years as CSRS and seven years as CSRS Offset. I also have more than 30 years of substantial Social Security earnings outside of the CSRS Offset. I am single and all of my earnings for retirement and Social Security are mine. I am pretty sure I won’t fall into the Windfall Elimination Provision category but cannot determine how much the Offset will apply. My Offset income is substantially higher now than it was when I left the government in…
Q: I retired at 55 with 30 years of service from CSRS. I did not pay into Social Security. My husband turned 65 and was told he was at full retirement age and receives Social Security. Can I draw Social Security benefits when I turn 65 or 66 off of him? Would it be decreased based on my retirement at age 65 or 66? A: Your age has nothing to do with it. Because you are receiving an annuity from CSRS, a retirement system where you didn’t pay Social Security taxes, you’ll be subject to the government pension offset provision…
Q: I am retired under CSRS from the postal service. I am 59 and do not qualify for Social Security. In a seminar before my retirement, I was told that the Social Security Administration will check my eligibility at age 62 and, if I am eligible, an adjustment would be made for Windfall Elimination Program. However, I was told if I became eligible for Social Security after 62 no adjustments would be made. I would receive Social Security based on what I earned when becoming qualified, probably around age 65. Is any of this accurate? A: What you were told…
Q: I am 58 years old, and I started work for the government in 1981. I have 30 years of service as a Defense Department civilian employee and four years as an active-duty service member. I am under the Civil Service Retirement System and plan to retire at age 62 with 38 years of total service. I have not bought back any of my active-duty time. What impact will that have on my retirement annuity and what impact will that have if I decide to take another job after I retire? A: Because you were first hired before Oct. 1,…
Q: My wife passed away five years ago at age 54. She had many years of working and adding to Social Security. I am recently retired under the Civil Service Retirement System. I was told that I will not be able to receive any of my wife’s contributions to Social Security. Is that true? If so, will that law ever be changed? A: Any Social Security survivor benefit you are entitled to based on your late wife’s work record will be impacted by the government pension offset. The GPO will reduce that benefit by $2 for every $3 you receive…
Q: My wife could receive an offer to retire early sometime this year because of budget cuts. She is 57 years old and has 27 years of federal service under the Federal Employees Retirement System. She will receive the FERS annuity supplement supplement until she is 62. Will she have to start taking her Social Security benefits at age 62 because she is receiving the annuity supplement, or can she hold off taking her Social Security until a later date? A: While the special retirement supplement ends at age 62, there is no requirement that a retiree apply for a…
Q: I requested retirement calculations for mid-2014 and recently learned that after I left the government in September 1984, the retirement money I withdrew would have to be repaid in order to receive the benefits for that money. I withdrew $3,700; repayment with accumulated interest would be more than $22,000. I returned to the government in March 1987 under the Civil Service Retirement System Offset program. I thought I read that if a person who receives money under CSRS can also receive full Social Security benefits (no windfall) if that person has enough credits with Social Security (approximately 30 years).…