Q. I retired after 43 years under CSRS last year. Because of my sick leave balance (3,800), my CSRS annuity is 83 percent of my working salary. My wife will be retiring at the end of this year with 20 years under FERS. Her net pay will drop from just under $2,600 a month to under $900 with her basic FERS annuity. Besides our TSP (Traditional & Roth), we also have two small traditional IRAs and two good size Roth IRA accounts. I have reached the minimum 40 credits for Social Security; however, because of the WEP, it would be under…
Browsing: Windfall Elimination Provision
Q. I am currently a CSRS Offset employee. Between private sector employment and Offset employment, I will have over 30 years of paying into Social Security. By the time I retire, I will have 30 years of combined CSRS (12 years) and CSRS Offset (18 years) employment. Is there some formula that weighs pure CSRS vs Offset employment. Will the WEP still negatively affect my Social Security payments? A. There is no simple formula for this. You’ll need to calculate your benefits under each system to compare them. The WEP will affect your Social Security benefit unless you have 30…
Q. It is my understanding that once you have accumulated 30 years of substantial Social Security contributions your Social Security payments will not be reduced by your GPO. Is this true? A. This is not true. The GPO does not apply to your own Social Security benefit. It applies only to a Social Security survivor benefit, and it is not affected by your years of Substantial Earnings under Social Security. If your Social Security benefit is subject to the Windfall Elimination Provision, or WEP, the effect of the WEP is affected by the number of years of Substantial Earnings you…
Q. I am currently CSRS Offset. As such, I pay Social Security and the CSRS 7 percent pension contribution. Do my CSRS Offset payments to Social Security count toward the 30 years required to avoid the windfall elimination provision? A. Any earnings that are subject to Social Security tax count toward satisfying the Substantial Earnings calculation for the WEP.