questions about social security

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Topic Author
jtelwood
Posts: 191
Joined: Wed Jun 11, 2008 9:45 am

questions about social security

Post by jtelwood »

I would like a good explanation on the 'file and supend strategy' as it would pertain to my situation.

I was a federal employee and retired several years ago under the CSRS system. I qualified for a small social security benefit (about $300/month) from work in the private sector and began taking this benefit about 4 years ago. My wife is presently a federal employee under the FERS system and will work about 3 more years. She is 62 and I am 66.
-- Could she file for and suspend her benefit?
--Would I get 1/2 of her current benefit (her benefit at 62)?
--How long would I get this benefit?
--When she filed for her benefit at age 66 or later, would my benefit revert back to what I was initially getting when I filed?

Thanks for your help.

j elwood
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: questions about social security

Post by sscritic »

She paid into social security, you didn't. If you were to file as her husband (one reason for her to file and suspend), your benefit would be reduced (or even eliminated). Your own benefit is computed under WEP, while your benefit as her husband would be reduced under GPO (government pension offset). Note that she can't file and suspend until she is 66. Before that, she just files; suspension isn't allowed until full retirement age.
Your Social Security benefits will be reduced by two-thirds of your government pension. In other words, if you get a monthly civil service pension of $600, two-thirds of that, or $400, must be deducted from your Social Security benefits. For example, if you are eligible for a $500 spouse’s, widow’s or widower’s benefit from Social Security, you will receive $100 per month from Social Security ($500 – $400 = $100).
http://www.ssa.gov/pubs/10007.html#a0=1

The maximum you could get as her husband is 1/2 of her age 66 benefit. Say that is $1800. Your maximum benefit as a husband (if you start at 66 or later) is $900. If your own pension is $1350 or more, your offset will eliminate your husband's benefit.

You have to look at both your numbers.

P.S. If she claimed and continued to work before her FRA, her benefit (and yours if any) would be reduced or eliminated by the earnings test.
wilked
Posts: 2441
Joined: Thu Mar 24, 2011 1:50 pm

Re: questions about social security

Post by wilked »

1) not likely if she is making over the limit
2) No, your pension counts againt it
Topic Author
jtelwood
Posts: 191
Joined: Wed Jun 11, 2008 9:45 am

Re: questions about social security

Post by jtelwood »

Thanks for the information.

I do have a couple more questions -

As I mentioned earlier, I am a CSRS retiree with both a federal pension and small social security benefit from work in the private sector. My wife is also a federal employee, but in the FERS retirement system.

Questions -

- if she retires at age 66 and files for her social security benefit, will her social security benefit be affected by either my federal pension or small social security benefit?

- will my small social security benefit or federal pension be affected when she begins receiving her benefits?

Thanks for taking the time to respond.

jtelwood
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: questions about social security

Post by sscritic »

1) no. Her own benefit is not reduced because you have a non-covered pension.
2) no. Your own benefit is not reduced because she is collecting social security.

Remember, your SS is small (computed using a different method) because you have a non-covered pension; that doesn't affect her. Because you have a non-covered pension, it affects you if you were to file as her husband; that doesn't affect her or your own benefit.
Topic Author
jtelwood
Posts: 191
Joined: Wed Jun 11, 2008 9:45 am

Re: questions about social security

Post by jtelwood »

That's what I thought.

Thanks again for taking the time to respond.

jtelwood
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