Q & A
I am 59 years old. I receive a CSRS disability annuity from service with the Postal Service. When I turn 62, I will also qualify for a Social Security annuity. Will I still receive my CSRS disability annuity at that point? Will I have the option of postponing taking my Social Security?
Answer: Yes, you will continue to receive your CSRS annuity. And yes, you can postpone the receipt of your Social Security benefit. However, when you do receive it, it will be subject to the windfall elimination provision if you have fewer…
What’s a COLA and why does it matter to you?
Answer: The rising costs of food, gas, electricity and health care can strain anyone’s budget. The situation is even worse if your living expenses increase while your income stays the same, because your purchasing power will steadily decline over time. That’s…
I am a CSRS Offset employee planning to retire at the end of the year. Do you know how much of a percentage (penalty) I’ll have to pay out of my retirement check since I’ll be collecting Social Security? Will I be able to collect on my husband’s Social Security if he dies before me?
Answer: You can estimate the reduction in your CSRS annuity using the following formula: Divide the Social Security benefit amount provided by the Social Security Administration by 40 and multiply the product by your total years of CSRS Offset service rounded…
Can I reduce or eliminate the windfall elimination provision reduction by continuing to work? I am now 62, and about to receive a modest deferred CSRS Offset pension. I also have 24 years of substantial earnings in Social Security. If I continue to accumulate substantial earnings, can I get up to 30 years, at which point the WEP penalty disappears? That is, if I don’t apply for Social Security until I’m 70, will they calculate the WEP based on my earnings record as of age 62? Or will they wait until I apply for Social Security?
Answer: As I understand it, the WEP is based on the number of years of Social Security-covered service you have at age 62, whether or not you apply for a Social Security benefit. Source: Federal Time, August 23, 2013 (http://blogs.federaltimes.com/federal-retirement/2013/08/23/windfall-elimination-provision-30/) …
What are the implications of not changing to my married name on my Social Security record?
Full question text: FIFTY years after Betty Friedan’s “Feminine Mystique” and countless principled-but-unwieldy hyphenated names later, the problem of married versus maiden names should be good and solved. But many women are still caught in an in-between purgatory: why have to…
On last year’s W-2s, Accuwage flagged a Social Security number (SSN) beginning with a nine. We called the Social Security Administration (SSA) and were advised to enter nine zeros for this SSN. We later learned that the SSN was an Individual Taxpayer Identification Number (ITIN). Should we have reported the nine zeros or the ITIN, even though the W-2 instructions say not to accept an ITIN from an employee?
Answer: You only use nine zeros when an employee has applied for an SSN but hasn’t received it. That said, you should report the numbers employees provide you. Even a wrong number, or an ITIN, can help the SSA identify the…
Are there any programs that you know of that help seniors with their Medicare expenses?
Full question: Are there any programs that you know of that help seniors with their Medicare expenses? I’m 67 and live primarily on my Social Security, and am having a hard time paying my Medicare premiums, deductibles, co-pays and prescription drug…
If I receive Supplemental Security Income (SSI) disability, what is the effect on my benefits when I take seasonal work?
Answer: Even a small amount of earned wages can cause a deduction in your SSI payment. However, it takes substantial work to make your benefits stop. In 2013, a person who receives SSI can earn up to $1,505 a month and…
Is there any legal way around the windfall elimination provision if you have only the 40 quarters of Social Security?
Full question: Is there any legal way around the windfall elimination provision if you have only the 40 quarters of Social Security. My pension was reduced nearly 50 percent because of this act. My wife collects Social Security. Could I…
I am 52 and would like to retire at 55. At that point, I will have 35 years in CSRS. I also have 36 quarters in Social Security as I worked a part-time job in college and other points in my life. Will I receive Social Security benefits with less than 40 quarters, and if so at what level? Also, if I go back to work as a contractor after I retire from federal service and get my additional quarters, what would be the impact when the windfall elimination provision kicks in?
Answer: No, you can’t receive Social Security benefits with less than 40 credits. To find out how the windfall elimination provision would affect you if you were eligible for a Social Security benefit, first go to http://ssa.gov/pubs/ENS-05-10045.pdf. Then use the…