Q & A
Will my pension reduce Social Security amounts?
Answer: Pensions do not usually reduce SSA amounts, but in very limited cases, mostly involving people who had government employment without paying into Social Security, they can result in a lower SSA amount. The key here is that the employment was not covered by Social Security. Most pensions are from work covered by Social Security. You are in covered employment if paying Social Security tax (FICA) on your wages or self-employment. Discussed last week, the Windfall Elimination Provision (WEP) lowers Social Security retirement and disability benefits to you based on your own work record. Read more…
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