Social Security Question

[mom31257]

Any SS experts on here? Dh has an interview with a school system that does not participate in SS. We believe the county may invest in something else, but we'll know more after the interview.  Here in GA, the schools did this years ago. When they stopped, a few counties chose to continue opting out of SS. 

He has been paying in his whole life, so he definitely has more than 40 quarters. If he were to stop paying now (10 years or so before retiring), would it hurt his benefits he has earned thus far? Or if he really wants the job, does he need to pay in the full 15%? 

Thanks for any advice! 

 

 

[Laura Corin]

Not an expert, but Husband hasn't paid in since he was thirty-six. Ss still says they will pay him what he accumulated until that point.

[mom2scouts]

In our state, there's a public employee's retirement system that is different than SS. Public school teachers and government employees pay into that instead of SS. DH has worked in both SS and this other system and, at one time, I believe you were only allowed to draw from one of them which is totally unfair to people who've had a mix of jobs. I believe they're changed it and he will be able to get what he's earned from both (I hope so! I guess we need to check!).

[WildflowerMom]

Idk, but my mil is also in Georgia and her school system didn't pay in and screwed the employees over if you ask me.  Now that she's retired, she is doing well.  I don't know exactly what she did, but she spoke to someone who was the ss specialist, either with the school system or directly with ss.   I would rely on them for straight answers, not us.  (Not that wtm isn't awesome!! but in this case, I'd go with the person who specializes in it).   You can pm me for more info if you want me to find out who she spoke to, whether it was someone in her local school or ss.  

 

[WildflowerMom]

I'm asking her right now...

[WildflowerMom]

Mil:  "I talked to representatives from the retirement system for the school.   Also the social security office."  She said more, but it's not applicable in your case... 

[Jean in Newcastle]

Employers can opt out?  I thought that it was mandatory? 

[Bootsie]

This is some information from the Social Security Administration about this issue.

Benefits Planner: Retirement | Windfall Elimination Provision (WEP) | SSA

 

[1234]

I know all of my siblings teach in a state that doesn’t pay SS. At one point long ago dh thought about teaching but at that time we were told if he switched he would only be able to collect one or the other at retirement, so it wasn’t worth it. My sister also thought about changing careers from teaching years ago and it was the retirement/SS issue that made her decide against switching. 

[Lori D.]

... removing personal info, since OP found her answer 😉 

 

Edited May 12, 2021 by Lori D.

[Carol in Cal.]

Google ‘Windfall Elimination’ on the social security website.  IIRC there is one publication regarding effects of this on the worker’s social security payments and another publication regarding effects of this on the spouse’s social security payments.

[plansrme]

6 hours ago, mom31257 said:

Any SS experts on here? Dh has an interview with a school system that does not participate in SS. We believe the county may invest in something else, but we'll know more after the interview.  Here in GA, the schools did this years ago. When they stopped, a few counties chose to continue opting out of SS. 

He has been paying in his whole life, so he definitely has more than 40 quarters. If he were to stop paying now (10 years or so before retiring), would it hurt his benefits he has earned thus far? Or if he really wants the job, does he need to pay in the full 15%? 

Thanks for any advice! 

 

 

Nothing he does not hurts the benefit he has already accrued with SS. But when you look at your statement with SS, make sure you understand the assumptions it uses. At one time, at least, it used to assume you would keep earning the same amount until retirement. That may or. may not be the case any more, but you can check.

He cannot pay in the full 15% to SS himself if his employer has opted out. There is no private contribution option.

Only states and political subdivisions of states can opt out of SS. To opt out, a public employer has to maintain a "Social Security replacement plan," or a "FICA replacement plan" (both useful terms to google), which has to meet certain minimum requirements that are designed to make it comparable to SS. Most public pensions in Georgia qualify as SSRPs with room to spare, but make sure you understand the eligibility and vesting requirements, particularly as he is relatively close to retirement.

 

[mom31257]

He had the interview today, and they are going to give him a contact person. They contribute 3% to a 403B and he contributes 5% to the teacher retirement system, which he has been doing for 14 years already. He worked in private schools before then. 

Looking at the windfall fact sheet, I think his wouldn't be reduced as much because he has had substantial earnings for 27 years, taking into account a couple years he was in graduate school and another he was laid off. 

 

[Lady Florida.]

I don't have advice but I had no idea that some school systems in GA still opt out. I didn't know it was even still possible. My first teaching job after college was in South Georgia and they didn't participate in SS. It all went into the retirement system I think. It was so long ago I can't remember, and I only taught there 3 years then cashed it out when I moved back home to Florida.

[Beth S]

My dh and I are considering retiring a few years earlier than we thought.
One breakthrough was learning about Spousal SS benefits.
My understanding is that the lower-income spouse receives about 50% of the higher-income spouse's SS amount.

Up until this point, I thought I would only receive SS benefits based on what *I* had earned.

I'm adding this here as a PSA, but also that it may affect YOUR SS benefits as well.

[Longtime Lurker]

1 hour ago, Beth S said:

My dh and I are considering retiring a few years earlier than we thought.
One breakthrough was learning about Spousal SS benefits.
My understanding is that the lower-income spouse receives about 50% of the higher-income spouse's SS amount.

Up until this point, I thought I would only receive SS benefits based on what *I* had earned.

I'm adding this here as a PSA, but also that it may affect YOUR SS benefits as well.

Yes. Effectively you will receive 50% of your spouse's benefit if it is higher than your benefit (if you have been married at least 10 years). Technically, you will receive your benefit PLUS an additional amount to bring it up to 50% of your spouse's amount.

Edited May 13, 2021 by Longtime Lurker
punctuation

[Longtime Lurker]

9 minutes ago, Longtime Lurker said:

Yes. Effectively you will receive 50% of your spouse's benefit if it is higher than your benefit (if you have been married at least 10 years). Technically, you will receive your benefit PLUS an additional amount to bring it up to 50% of your spouse's amount.

Also, when one spouse dies, the other spouse can get their own benefit amount OR their spouse's full benefit amount, whichever is higher, for the rest of their lives.

[City Mouse]

I have never paid SS when working for school districts that provide a pension. When I was in Texas, there was a known issue that teachers who worked other jobs that did contribute to SS were penalized by SS when retiring - by penalized I mean that any SS payments were reduced because of pension payments so that teachers did not get there full SS benefit even though they had earned it.

I may have the details wrong because I was young and oblivious and didn’t pay a lot of attention to the issue when I should have.

Edited May 13, 2021 by City Mouse

[BlsdMama]

I have no idea of this comes into play but....

 

 When I got my diagnosis, ALS is one of the guaranteed “auto” disability diseases. I was forty. I only needed twenty credits and I had them accumulated from my early life. *However* because NONE of the credits had been acquired in the past five years, I get no benefits, including healthcare, and neither will my kids from me. It was a kick in the teeth. 

[Laura Corin]

7 hours ago, Beth S said:

My dh and I are considering retiring a few years earlier than we thought.
One breakthrough was learning about Spousal SS benefits.
My understanding is that the lower-income spouse receives about 50% of the higher-income spouse's SS amount.

Up until this point, I thought I would only receive SS benefits based on what *I* had earned.

I'm adding this here as a PSA, but also that it may affect YOUR SS benefits as well.

Yes. As I've barely worked in the US, and the UK and US have an agreement to facilitate this, I will get a very small SS income based on my husband's contributions.

[TravelingChris]

8 hours ago, BlsdMama said:

I have no idea of this comes into play but....

 

 When I got my diagnosis, ALS is one of the guaranteed “auto” disability diseases. I was forty. I only needed twenty credits and I had them accumulated from my early life. *However* because NONE of the credits had been acquired in the past five years, I get no benefits, including healthcare, and neither will my kids from me. It was a kick in the teeth. 

Same here.  Not an auto disability but yeah, I have had people shocked that I can't get disability 

[Ottakee]

9 hours ago, BlsdMama said:

I have no idea of this comes into play but....

 

 When I got my diagnosis, ALS is one of the guaranteed “auto” disability diseases. I was forty. I only needed twenty credits and I had them accumulated from my early life. *However* because NONE of the credits had been acquired in the past five years, I get no benefits, including healthcare, and neither will my kids from me. It was a kick in the teeth. 

That is an issue for stay at home moms.

[mom31257]

13 minutes ago, Ottakee said:

That is an issue for stay at home moms.

I have always had some part-time income, usually from tutoring, so I'm glad I have reported it and paid SS on it.