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tim

Civil Service retirees who receive SS might like this ...WEP tax ...

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tim

Social Security Windfall Elimination Provision Reappears on the Legislative Radar

From NAPUS:

napus-300x165.jpgMore than 30 years ago, Congress enacted legislation to strengthen the Social Security program, in part, at the expense of Civil Service Retirement System (CSRS) annuitants who were eligible for Social Security. Since 1983, NAPUS and others, including NARFE, have sought to repeal this discriminatory component of the Social Security law, the Windfall Elimination Provision (WEP). Generally, WEP reduces the Social Security benefit of workers who have retirement income through non-Social Security employment. Postal and federal employees were not covered under Social Security until January 1984. (WEP does not apply to FERS-covered Postmasters.)

Last year, Representative Kevin Brady (R-TX) introduced HR 711, “the Equal Treatment of Public Servants Act.” For WEP-impacted annuitants who qualify for Social Security in 2017, the bill would replace the WEP with a new benefit schedule, which provides a more equitable calculation of the WEP. For current WEP victims, the bill would reduce their WEP penalty (by no greater than 50%) for future payments. The actual dollar reduction would be determined by the Social Security Administration, based upon projected savings attributable to enforcement sections of the bill.

There are three reasons why HR 711 seems to have gained traction: First, Representative Brady is the new chairman of the House Ways and Means Committee (formerly chaired by House Speaker Paul Ryan); second, HR 711 creates a funding mechanism to recalculate the WEP; and third, the Social Security Administration has attained a greater degree of accuracy and comprehensiveness in the collection of WEP enforcement data.

NAPUS supports HR 711 and there are presently 51 cosponsors of the bill.

Source: NAPUS

 

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NOSOCALPINOY
Well, it's too late for me, because the WEP was already computed in my Civil Service CRS retirement pension since 1997 the day I retired at age 49 and moved to the Philippines in 1998 for early retirement on a small initial Civil Service pension, until the time my other pensions kicked in at age 60 and 62..

Lucky for me though I completed 30 yrs with the Air Force Reserves, including my active duty of 12 yrs and started collecting my military retirement pension when I turned age 60 and also started to collect my meager Social Security pension at age 62 that was affected by the WEP, but with all the COLAs over the years since 1997 and my combined pensions to date, we live a good comfortable retirement life here in the Philippines and we have no complaints since everything fell into place to make our lives a little bit more better and enjoyable in the future.   

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Salty Dog

Well, it's too late for me, because the WEP was already computed in my Civil Service CRS retirement pension since 1997 the day I retired at age 49 and moved to the Philippines in 1998 for early retirement on a small initial Civil Service pension, until the time my other pensions kicked in at age 60 and 62..

Lucky for me though I completed 30 yrs with the Air Force Reserves, including my active duty of 12 yrs and started collecting my military retirement pension when I turned age 60 and also started to collect my meager Social Security pension at age 62 that was affected by the WEP, but with all the COLAs over the years since 1997 and my combined pensions to date, we live a good comfortable retirement life here in the Philippines and we have no complaints since everything fell into place to make our lives a little bit more better and enjoyable in the future.

So which is reduced? Your civil service retirement or your SS?

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MikeC

WEP reduces your SSN benefit.

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Jester

I'm not civil service but the double dipper law got me also.  I have never drawn a penny of social security!

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Salty Dog

I'm not civil service but the double dipper law got me also. I have never drawn a penny of social security!

Neither did my father, but then he never paid into it.

 

How did it effect you if you didn't work for the government?

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Aerosick

Neither did my father, but then he never paid into it.

 

How did it effect you if you didn't work for the government?

 

Mine got me for the 20 years I worked for the City of Los Angeles. They have their own retirement plan and did not hold out any SS.

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MikeC

I think its biggest impact may government workers (who didn't pay into SS and who would have no benefit) who try to collect a spousal benefit (for a spouse who did pay in). My mom was a teacher who didn't retire until age 75. She collected a spousal benefit based on my dad's SS from 62 until she retired. Every so often she had to prove to SS that she was still working and not receiving a retirement pension. When she retired, WEP kicked in and eliminated any SS based on my dad's earnings.

 

Similarly, I suppose if your spouse collects a survivor's benefit from your government pension, it should impact their SS benefit (or their survivor SS benefit).

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tim

 

 

Similarly, I suppose if your spouse collects a survivor's benefit from your government pension, it should impact their SS benefit (or their survivor SS benefit).

 

I did not know this,,,hell my wife is going to be pissed if this is true...

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tim

Google , if not perfect but can give U some information ....true or not ?   but this is what I found...

 

Survivor Benefits not impacted by WEP

The good news is that the impact of WEP does not reach beyond the grave.  After the primary numberholder (Danny from our example above) has passed away, the pension based on the earnings not subject to Social Security taxes ceases to be paid to Danny.  Even if Sandy receives a survivor pension from Danny’s government work, WEP will no longer impact any Social Security benefits that Sandy receives based upon Danny’s record.  Danny’s PIA is restored to the former level, and the Survivor Benefit that Sandy is eligible to receive will be based upon the restored, $1,200/month PIA.

Edited by tim

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Jester

Neither did my father, but then he never paid into it.

 

How did it effect you if you didn't work for the government?

In my younger day I paid into SS, then went to work for the Rail Road.

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tim

In my younger day I paid into SS, then went to work for the Rail Road.

 

We did the same, worked as kids thru High School, College...and part time jobs.... over the years I collected my 40 credits needed to draw with my OPM retirement... 

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MikeC

Google , if not perfect but can give U some information ....true or not ? but this is what I found...

 

Survivor Benefits not impacted by WEP

The good news is that the impact of WEP does not reach beyond the grave. After the primary numberholder (Danny from our example above) has passed away, the pension based on the earnings not subject to Social Security taxes ceases to be paid to Danny. Even if Sandy receives a survivor pension from Danny’s government work, WEP will no longer impact any Social Security benefits that Sandy receives based upon Danny’s record. Danny’s PIA is restored to the former level, and the Survivor Benefit that Sandy is eligible to receive will be based upon the restored, $1,200/month PIA.

Sorry, I was referring to the GPO (government pension offset) not WEP. My bad.

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NOSOCALPINOY

So which is reduced? Your civil service retirement or your SS?

Both, an early retirement penalty under 55 yrs of age of $500 a month for 6 yrs and my SS

was affected by the WEP only receiving 1/3 from the norm at age 62 when I started to collect

it 5 yrs ago,. 

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Paul

I did not know this,,,hell my wife is going to be pissed if this is true...

 

I wouldn't worry about that. After we kill you errr, I mean - hopefully after many long retirement years together with you, she will have enough from the life insurance policy.

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tim

I wouldn't worry about that. After we kill you errr, I mean - hopefully after many long retirement years together with you, she will have enough from the life insurance policy.

 

I will make sure she knows where all of the money is buried in the backyard in case  ya'll get me errrr I mean, in case after many long retirement years I wander off into the woods and shoot myself in the back 27 times ...

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tonny

Well new this guy in Ormoc  leyte ,,,his story!!!!!  Said He got Railroad SS disability,,   service connected  military pay 100 % and officers  railroad retirement which he said was separate from the regular  SS railroad disability  , which he said added up to over 8,000$ a month now he really was lucky are was telling a big one !!!!

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Paul

Well new this guy in Ormoc  leyte ,,,his story!!!!!  Said He got Railroad SS disability,,   service connected  military pay 100 % and officers  railroad retirement which he said was separate from the regular  SS railroad disability  , which he said added up to over 8,000$ a month now he really was lucky are was telling a big one !!!!

 

I have relatives who have worked, and still do work for the railroad. They do not pay into Social Security. To my knowledge, they are not eligible for it, either. Railroad Retirement is what they get, Tonny, if I am on track here. (No pun intended.)

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colemanlee

I have relatives who have worked, and still do work for the railroad. They do not pay into Social Security. To my knowledge, they are not eligible for it, either. Railroad Retirement is what they get, Tonny, if I am on track here. (No pun intended.)

That's the way I always heard it...I suppose if you had worked your 40 quarters doing something else you could get both...

 

When I retired from DOD I did it as a FERS employee...(federal employee retirement system) basically all we got was what we invested into the pension, but we also paid into SS so was eligible for that also...

Many that had been there a while were still on the CRS program,(Civilian Retirement Program) they did not pay into SS and were ineligible unless sometime in their life they had worked the required 40 quarters.  They could also convert their military service retirement into the program giving them that many more years for retirement which could pay off big if you had achieved say a high GS rating and retired say something like a Sgt. therefore getting paid at a much higher rate for those years.   There were some other intricacies to it but I don't remember as it did not affect me.  

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NOSOCALPINOY

 They could also convert their military service retirement into the program giving them that many more years for retirement which could pay off big if you had achieved say a high GS rating and retired say something like a Sgt. therefore getting paid at a much higher rate for those years.   There were some other intricacies to it but I don't remember as it did not affect me.  

I was on that boat and it did payoff big time for me at age 60 and 62, but I had both a GS & WG pay grade as a civilian employee for 18 yrs and and an enlisted reservist pay grade including my 12 yrs of active duty, which made up for the partial percentage lost in my Social Security pension due to the "WEP".

I'm aka a "Quadruple Dipper", with 4 pensions: My immediate Civil Service retirement Pension, Military Pay at age 60, VA Disability Compensation after my voluntary discharge from active duty and my Social Security pension I claimed at age 62, which are all earned entitlements (no freebies) like a few out there like myself who were at the right place and at the right time during their entire combined military and civil service career with the U.S. government.

Also during the Clinton administration early retirements, which only comes around once in a blue moon, were being offered to those with a minimum of 25 yrs service at any age during Clinton's military/civilian manpower reduction and base closures. I took the early retirement offer since I was ready to call it quits anyway and I had 30 yrs of service at age 49, which saved a younger employee from being removed from his/her position of the same career field I had occupied.

All's well that ended well. I've been retired going on 18 yrs now and my wife and I are still enjoying our retirement life style here in the Philippines and here we shall stay for the long term.    

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