So, I met with my financial planner from Edward Jones last week. I retired from the police dept last april after 25 years. I paid into a public employees retirement system the entire time along with contributions from my employer. So I met with my advisor for some long term planning. Since I paid into social security for over 10 years prior to my police job, he asked that I contact social security to get an idea of my monthly benefits. I did so and was told that because of a "windfall" tax I was going to get absolutely NOTHING in benefits!!! Huh???? What happened to all the money me and my employers paid into social security???? Why am I being penalized??? Illegals crawl over the border and apply for benefits when they never paid a dime into the system!!!

It's ok. That bullshit ponzi scheme isn't even going to be solvent by the time I retire, and I've already been paying into it for 25 years.

By the time I retire I'll have been paying into it for over FIFTY YEARS, and I won't get a fucking dime out of it.

Yikes, that's terrible. If the money was put into it's own fund, instead of the general fund, there would be plenty left. Both parties have been stealing from it for years. The guy I spoke to at social security was very professional. I said, OK just give me what I put into it without my employers contribution or any interest. He found that amusing!!

quote:

Originally posted by MMSIG229:
Yikes, that's terrible. If the money was put into it's own fund, instead of the general fund, there would be plenty left. Both parties have been stealing from it for years. The guy I spoke to at social security was very professional. I said, OK just give me what I put into it without my employers contribution or any interest. He found that amusing!!

Agreed. They've all been stealing from it for years, and now the bill has come due.

Last I saw, it will be insolvent by like 2040 or something.

If only someone would allow me to fully privatize my retirement instead of forcing me to pay for something with no benefit to me.. Damn socialists.

Through experience I learned that the old government Civil Service retirement system (CSRS) had the same problem along with retired RR employees. I retired civil service in 1995, was employeed locally till I quit in Dec. 2010. Projected benefits originally $600 a month. Because of the "windfall act" I ended up getting around $200 a month. Unfortunately nothing can be done about it.

sounds like they lost the lock box with all the money in it

quote:

Originally posted by nasig:
sounds like they lost the lock box with all the money in it

No, they know exactly where it is. Unfortunately, it's full of IOUs.

ETA: Nice CUT!

What "Windfall Tax"? You should get a print out from SS indicating how much you paid into SS over your lifetime. Each year your earnings and SS/Medicare deducted on the printout. Deduction from your payroll slip are under "FICA".

Someone at Social Security is jerking OP around.

quote:

Originally posted by GWbiker:
What "Windfall Tax"? You should get a print out from SS indicating how much you paid into SS over your lifetime. Each year your earnings and SS/Medicare deducted on the printout. Deduction from your payroll slip are under "FICA".

Someone at Social Security is jerking OP around.

Social security hasn't mailed out paper copies it quite some time. Everything is done online now. My planner forewarned me, but I thought I'd get a reduced amount, but something!!! I remember seeing printouts years ago listing what you've mentioned. Those figures didn't include another pension.

Don't fully understand it, but there's definately something there.

https://www.ssa.gov/pubs/EN-05-10045.pdf

Don't know where the OP is located but, I will say that I also have Edward Jones and they are top notch folks to deal with. I would recommend them to anyone. Regardless whether you have five hundred or five hhndred thousand they treat you all the same. As far as SS goes it is and always has been a rip off. If the Govt. Would have left it alone it would have worked just the way it was planned but, they have borrowed from it until it is nearly broke.

Same boat as OP. Figured up last year on SS web site to start drawing at 62. Went from over $800 to mid $500s due to starting early. Then the windfall deduction dropped it to little over $100/month. Ticked me off to no end as I was seeing a new tractor in my immediate future!

According to my statement, I have 19yrs in which I've paid into SS, although most on a part-time basis. No reason to suffer a penalty because I paid into two different systems.

Mike

 
My wife is hit by this, as a retired LEO. She did work for 18 or so years pre-LEO and paid into SS, but many of those years were small salaries. Anyway, without WEP ("Windfall Elimination Provision"), she was projected to get about $450-$500/month in SS. Once she actually filed and WEP was figured in, she does get a bit over $200. I did a lot of reading and figuring on it for her. I seem to recall that no matter how hard it hits you, there is still a minimum stipend to be had, if you worked enough quarters/years under SS. Still sucks, though.
 

quote:

Originally posted by MMSIG229:
[QUOTE]Originally posted by GWbiker:
What "Windfall Tax"? You should get a print out from SS indicating how much you paid into SS over your lifetime. Each year your earnings and SS/Medicare deducted on the printout. Deduction from your payroll slip are under "FICA".

Someone at Social Security is jerking OP around.

Social security hasn't mailed out paper copies it quite some time. Everything is done online now. My planner forewarned me, but I thought I'd get a reduced amount, but something!!! I remember seeing printouts years ago listing what you've mentioned. Those figures didn't include another pension.

Both my wife and I get paper print outs twice a year. Once during the year and again at tax time. I never agree with anyone to stop receiving paper statements. I want paper encase the computer stops working.

Same for me. Worked well over the mininum number of quarters required for full SS. Worked addl 13 years for a local govt that didn't participate in Ss. Result was that I lost major part of my SS payment after retirement. Widfall penalty or some such nonsense.

Wow. I'm glad it doesn't apply to me but it sounds to me like since Social Security didn't get their cut from when you were working under different rules, they're going to take their cut now.

I think it's unfair. You're just asking for money based on what you put in and, now, they're netting out what they say you should have put in. Double whammy.

UPDATE

So I went and opened up a SS account from their website. Some good news. I started paying into SS in 1973 and was paying into it like a normal person until I was hired by the dept in 1991. From 1991 on I had still been paying into it from off duty details etc. I got a statement and was able to see my contributions for all the years from 1973 until the present. After plugging in all the figures, and providing my monthly pension benefit it looks like I'll be getting about $343.00 a month. Better than nothing!!! I can only assume that the guy I spoke with originally at the SS dept didn't take into account the fact that I continued to contribute during my 25 years at the police dept.

And yes, I'm very happy with Edward Jones. My advisor took all my finances into account and did a spread sheet on what we'll need during retirement. Taking everything into account we'll be at 103% of our necessary living expenses. Now I can stop worrying so much!!!

Glad it sort of worked out for you.

Now we see why govt officials do not subject themselves to paying into SS.

quote:

Originally posted by Aquabird:

...Now we see why govt officials do not subject themselves to paying into SS.

If you mean the federal govt that is half right. Everyone hired after Jan 1, 1984 is in the new system (FERS) and does pay into SS.

quote:

Originally posted by Sigmund:

quote:

Originally posted by Aquabird:

...Now we see why govt officials do not subject themselves to paying into SS.

If you mean the federal govt that is half right. Everyone hired after Jan 1, 1984 is in the new system (FERS) and does pay into SS.

And FERS sucks in my view. 1% of your high 3 annual income averaged (1.1% with longevity) + SS + whatever you have saved in your Thrift account aka 401 with some govt matching.

I retired as a "high grade" and if I didn't also have a military retirement things would be rather glum.