Will I Avoid Social Security’s Government Pension Offset?
The Social Security’s Government Pension Offset seeks to eliminate government employees from receiving Social Security benefits that they did not pay into. Many government entities do not take Social Security out of their employee’s paychecks, as they will be receiving a government pension instead. This offset stops government workers from receiving a full pension and full Social Security benefits. Read below to see if this could affect you.
Are you receiving a spousal, widow, or widower’s benefit from Social Security?
In order to have the offset, you must be receiving benefits from Social Security. If you are not receiving benefits, you will not be affected.
Was your last day of employment before 7/1/2004?
If it was, you will not be subject to the offset. If your last day was after the above date, move on.
Have you paid Social Security on your earnings for at least 60 months of government service?
If you have, you will not be subject to the pension offset. If you have not paid into Social Security for at least 60 months, move on.
Did you file for spousal, widow, or widower’s benefits from Social Security before 4/1/2004?
If you filed for benefits before the above date, you will not be subject to the pension offset. If you filed after 4/1/2004, you may be subject to the pension offset.
The process to check whether or not you will be subject to the offset is convoluted and complicated. Check out this flowchart to learn more.
If you have questions regarding Social Security or other general retirement planning advice, please give us a call at 303-440-2906 or click here to schedule a time to speak with us.
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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