I don’t understand how you get a public employee pension AND social security. I thought that if you got a public employee pension you didn’t even pay into social security.
that is the way it is in California and the unions in Michigan are at least as strong as they are in California
He may have earned enough quarters to collect SS if he worked at all in the private sector.
Also, I believe some state and local government employees do participate in SS.
“I don’t understand how you get a public employee pension AND social security. I thought that if you got a public employee pension you didn’t even pay into social security.”
Many retired public employees found employment full time in the private sector and worked many years after retiring from public service and paid into SS. Those employees then earned sufficient SS credits to get some SS retirement benefits, although they are penalized by a reduction in those SS retirement benefits.
A Public Pension and Full Social Security Benefits? No Way
Social Security benefits can be reduced for retirees who receive a pension from the federal, state or local government.
September 10, 2010
EDITOR’S NOTE: This article was originally published in the August 2010 issue of Kiplinger’s Retirement Report. To subscribe, click here.
Perhaps you had two careers. In one job, you were a government employee whose earnings were exempt from the Social Security payroll tax. You also worked in the private sector, paying into the Social Security system. When you retire, you’ll get your public pension, but don’t count on getting your full Social Security benefit.
Under federal law, any Social Security benefits you earned will be reduced if you were a federal, state or local government employee who earned a pension on wages that were not covered by Social Security. Reductions also apply to Social Security spousal or survivor benefits that are claimed by government pensioners.
David Walrath, a lobbyist for the California Retired Teachers Association, says many government employees don’t realize their Social Security will be squeezed until they apply. “People will get their annual statement with a benefit number, but they’re not told they’re subject to an offset,” says Walrath, with the consulting firm of Murdoch, Walrath & Holmes, in Sacramento, Cal.
The two rules that cover government employees are the “windfall elimination provision” (WEP) and the “government pension offset” (GPO). The WEP applies to workers, and the GPO applies to government pensioners who are applying for Social Security spousal and survivor benefits.
Patricia Kohlen got hit by both. Kohlen, 61, paid into a public pension system for 28 years when she worked as an elementary school teacher in Atascadero, Cal. She also worked part-time as a secretary and paid Social Security taxes through that job.
Just before Kohlen retired with a disability in 2003, her statement showed that she was due $247 a month in Social Security disability payments. The windfall provision reduced the payments to $108 a month. Her monthly teacher’s pension is currently $1,930.
Read at: http://www.kiplinger.com/printstory.php?pid=7016
California is not all like that. Back when social security was implemented counties, cities, etc. were given the choice of whether they would pay into it or not. In most of them the employees voted on it. I know this because my father in law remembered it well and voted for it. He was a county employee who paid into social security his whole life. He drew his pension and social security. The amount of social security he drew was based on his retirement income.
Hubby also was a county employee, a firefighter. He turned 62 in January and will receive his first social security check next month. He also draws a retirement pension and the amount of his social security is based on his retirement income.
In some states civil servants also pay into social security.