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She paid into the Teacher Retirement System of Texas for 30 years, and she receives an $1,800 per month annuity. My question. I worked 25 years in education in the state of Missouri. Social Security or from employment in a district that pays into both TRS and Social Security. Does the GPO change if the surviving spouse (teacher) also earned 40 social security quarters in another job aside from the teacher job? And don’t leave without getting your FREE copy of my Social Security Cheat Sheet. At 30 years of, The amount of monthly Social Security benefit you can expect, The number of “substantial earnings” years you already have, How additional years of substantial earnings will affect the WEP penalty. I retired last year at 62 and will accrue 72G from my small TRS pension over the next 8 years before applying for SS. What’s the motivation for brings years of life skills into the classroom? The law should be repealed. Time to petition our elected officials. Can I return to work after retiring from a district that pays into both TRS and Social Security without losing my spousal Social Security benefits? Teachers should be aware of how their Texas retirement benefits affect t… Teaching is second career. If he had been a pharmacist instead of working in education, he would have been eligible to receive the full $2,200 per month. I am 59 years old and plan to retire at 65 yo. For example, if you had chosen to stay at home as the household manager, you would not have paid into the Social Security system. Thanks to Social Security benefits, some teachers are in better shape for their retirement years than they would be otherwise. Teachers who spend their entire careers in Texas may never pay any money into the Social Security system at all. He draws a lot more than I do in social security. Thanks. Individual benefits vary depending on a number of factors. I was drawing my wife’s portion of SS benefits for about three years. The SSA office will be able to give you the numbers you are looking for. I hope that a website with ‘intelligence’ in its name will correct the information concerning Texas. The only way to be exempt from the WEP is to pay into Social Security for 30 or more years of substantial earnings. After that the pension will net only $250 a month above my SS. You will receive a Social Security benefit, but if you have taught (or intend to teach) for five or more years in a non-Social Security district, you’ll likely be affected by the WEP. Thank you. Jane is a retired Texas teacher. DALLAS — Thousands of Texas teachers are rushing to retire before a lucrative loophole in Social Security law closes, but there's one catch: They must first spend a day washing The three amounts are then added together to determine a person’s monthly annuity. Eligibility is based on age and the number of years married to a qualified spouse. For more information on the Windfall Elimination Provision, see these helpful resources: The nitty-gritty of the Government Pension Offset (GPO) is simple. No. If my husband worked at the schools for 27 years and has passed away three months ago am I eligible for Social Security even though he had TRS. However, you will only be able to withdraw your own contributions plus interest and not the contributions made by the state on your behalf. General questions The percentage increases from 40 percent to 90 percent as an individual’s years of substantial earnings increase from 20 to 30. SO UNFAIR…. If they worked in Arkansas (where teachers do participate in Social Security) for at least 10 years and then taught in Texas (where teachers don’t participate in Social Security), they would qualify for both Social Security and the Teacher Retirement System of Texas. For teachers who receive the average Social Security … Which Social Security benefits am I eligible to receive? The exemption rule applies to the GPO only. Will my eligibility for a TRS pension prevent me from collecting Social Security benefits? Teacher Retirement System TRS is a defined benefit retirement plan governed by Internal Revenue Code Section 401 (a). To prevent dual entitlement, the government implemented rules that reduce the amount of spousal or widow/er benefits a person can receive by the amount of his or her own Social Security pension benefit. If I rescind my TRS membership and withdraw my contributions from TRS so that I will not receive a TRS pension, will I still be subject to these offsets? I just became eligible for Social Security widow benefits. so really what I have in SERS pension will be subtracted from social security…. You should be able to receive a benefit. Learn to pinch pennies and eat less. I agree that this is unfair to those who have put in their quarters to social security and just because they chose.to teach their social security is split in half. From time to time I’ll even drop in to add my thoughts, too. Thanks Ron Landers, No. You should only put in your years of earnings that were covered by Social Security. The standard formula for figuring Social Security benefits averages a person’s pre-retirement earnings by dividing total pre-retirement earnings by 35 years, then dividing that amount by 12 to find the average monthly earnings (AME). Jim receives $1,300 per month from Social Security. One this is for sure, you don’t want to wait for them to catch your non-covered pension and send you an overpayment letter. If a teacher is covered by her state's Teacher Retirement System (TRS), but is otherwise eligible for Social Security benefits, some special rules apply that may reduce the amount the teacher … I paid a lawyer to do paperwork for me in 2004. Authored by U.S. Rep. Kevin Brady (R–TX), the bill is an attempt to address inequities of the WEP. For those considering TRS withdrawal to avoid the GPO, it is important to remember that the overall benefits you would receive if you are eligible for full spousal Social Security benefits would rarely be more than those you receive by being eligible for both a TRS pension and Social Security spousal benefits reduced by the GPO. I get less SS than you do and no teaching benefit, because I was not a teacher. My mom has been a paraprofessional in Texas for 28 years. The trick in my case was to retire, early collect the TRS pension for as long as possible before applying for SS. Widow/er benefits are usually equal to 71 percent to 100 percent of the spouse’s benefit and are paid to the dependent spouse after the other spouse’s death. I had 4 years of substantial earnings, because I worked part =-time and raised our children. The WEP modifies this formula for employees who are eligible for a government (TRS) pension by multiplying the first $816 of the AME by a smaller percentage that is based on the number of years the person paid Social Security taxes on substantial earnings (a designated amount adjusted yearly to reflect economic trends). However, all employees eligible for a government pension—such as that provided by the Teacher Retirement System (TRS)—who are also eligible for Social Security benefits are subject to two offset rules that can reduce the amount of Social Security benefits they may be eligible to receive: ETPSA stands for Equal Treatment of Public Servants Act, which is the name of a bill (H.R. To fund the TRS Pension you will contribute 7.7% of pre-tax money from your paycheck. If you’d like to dig into the Government Pension Offset a little deeper, see my article on What You Should Know About the Government Pension Offset. ATPE supports the ETPSA as a step in the right direction, even though it does not fully eliminate the need for a separate calculation of benefits for workers who are eligible for a government pension. As a teacher in Texas, you are probably not paying into Social Security while you teach. My husband is 66 and I am 68. Is this true? This work day was suppose to fill a “loop hole” in the Texas and SS law at the time to allow me to collect SS benefits. That’s $8,400 a extra money per year. Way to confusing for me. Would love your thoughts, please comment. The ETPSA would repeal the WEP and replace it with a new formula that would treat public-sector employees the same as private-sector employees by basing each employee’s benefits on his or her actual Social Security contributions and work history. Obviously, not everyone has the option of accumulating enough years to wipe out the big monthly WEP reduction. Whom should I contact? If you have questions, you could leave a comment below, but what may be an even greater help is to join my FREE Facebook members group. I plan on retiring in 2 years at 54 drawing my TRS retirement. I am now 70 and can,t afford Dr. bills! You will be subject to the Windfall Elimination Provision (WEP). Will i not get SS or not eligible, even though I have paid into SS since I was 16 years old? If you met the “last day” exemption from the GPO, you should be eligible to receive a spousal benefit. As a teacher, you have plenty to keep up with and these complex rules on Social Security don’t make it any easier. Your doctors should accept Medicare. There’s no doubt this can be a complex topic and most of the teachers that I’ve talked to have seen lots of conflicting information — so let’s clear up the confusion and take a closer look at the rules on teacher’s retirement and Social Security. I’d love to have a list of those districts. However, some government employees, including Texas educators, work in jobs that pay into government pension programs (such as TRS) rather than Social Security. Thanks to the GPO his survivor’s benefit was reduced to a measly $300 per month. What is my best strategy to maximize my benefits at retirement? I worked 20 years in banking, 10 years of retail…and the last 19 years as a para educator , not making enough to live on (thank God I have a spouse)……. My wife cashed out her Texas TRS account many years ago (I believe around 1982). Contact a financial planner for details. There is that. You will not be subject to the GPO if you withdraw from TRS, regardless of whether or not you meet the eligibility requirements for a TRS pension. If they worked in Arkansas (where teachers do participate in Social Security) for at least 10 years and then taught in Texas (where teachers don’t participate in Social Security), they would qualify for both Social Security and the Teacher Retirement System of Texas. Others may have taught in a state where teachers do participate in Social Security. So let’s say you retire, receive your TRS pension but you are also eligible for Social Security benefits based on attaining over 40 credits in other employment. For example, employees received one credit for every $1,160 of earnings on which they paid Social Security taxes in 2013. Contact ATPE by email, phone, mail or form. Because I did not meet the “substantial earnings” criteria for 20 TWENTY of those years I get a 50% reduction. Thus, Texas teachers may receive very little or no Social Security benefits at all, even if they paid Social Security taxes through another employer or if their spouse paid Social Security taxes. I am retiring from teacher in mid June. Will this be penalized with the windfall provision. To use this calculator you’ll need to get a copy of your earnings history from the SSA. I’m a Michigan public school basic teacher with 34 years. The results of these amendments are two rules that could impact your ability to claim your full Social Security benefit as a teacher: The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). If you withdraw from TRS before meeting the minimum eligibility requirements for a TRS pension, you will not be subject to the WEP. I… Read more ». How will the WEP and GOP impact me? The maximum Social Security reduction will never be greater than one half of your pension amount. As long as you paid into SS in the work where you also qualified for the pension, that pension WILL NOT trigger the reductions to SS. We moved to AZ. The primary problem with attaining full repeal is the cost; the Government Accountability Office estimates that a repeal of both provisions would cost more than $90 billion over a 10-year period. For example, teachers in my town, which is divided between the states of Arkansas and Texas, could qualify for both. Why does the Government Pension Offset (GPO) affect Texas educators? My girlfriend worked for The City of Jacksonville, FL. Because these employees have little or no Social Security-covered employment, it appears that they are dependent on their spouses when in reality they are not. I tried to draw my widow’s benefits at 62 and was told I was ineligible for this. Social Security spousal and widow/er benefits were created to provide security for people dependent on their spouses. These provisions reduce (or eliminate) benefits for those who worked in a job in which they: This is not limited to teachers. You are already paying 7% into your pension, it would be unfair if the government asked you to pay … You will not lose your spousal Social Security benefits as long as you maintain your status as a retiree under TRS. SS says on her annual statement that she is eligible for about 350.00 a month. After Medicare is paid, I receive only $220.00 of my SS. Yes. So $2,200 a month goes … where? Thank the Ronald Reagan years for these absurd laws penalizing teachers,etc. Will I get social security and pension? Moreover, participation in TRS is more cost effective for employers because the availability of TRS as a qualified replacement plan to Social Security saves Texas Will working my last five years before retirement in a position covered by both TRS and Social Security exempt me from the WEP? ATPE believes these offsets have a negative impact on the shortage of certified teachers in Texas. If I have been eligible to draw TRS but have not done so, will my Social Security benefits be modified or worse? (Most Texas school districts do not pay into Social Security.) I dont teach in Arizona. Or will my Social Security potentially be reduced because I receive survivor benefits from her TRS annuity? Here’s the math: Some would say that’s not fair and I think they have a compelling point. I have also worked for 25 years and I am still working paying in SS. offset, How do you live off 1200 a month? Today there are still 15 states that participate solely in their own pension plans instead of Social Security: If you are a teacher in one of those states, the rules for collecting a Teacher’s Retirement System (TRS) pension and Social Security can be confusing and maddening to try and figure out. The government also contributes 7.5% to the pension … In a case like this the GPO only applies because of Michael’s chosen profession. Teachers Retirement and Social Security. … I still have questions. I paid into SS for 21 years, my ex 30 years, I returned to work later in life, and my pension was only for ten years, my SS is only 225 and if I get a cola increase , it goes down, I cannot get my ex spouse because if Gov. Upon her death, Michael learned that because of his CalSTRS pension he would not be eligible to receive a normal Social Security survivor’s benefit. I am planning to return to work soon. Who can we speak with to get these rules changed? Everyone knows you became eligible for Medicare at 65. If you meet both of requirements for the GPO – you are entitled to a Social Security benefit as a survivor or spouse and have a pension from a government job where you did not pay Social Security tax – your Social Security survivor or spousal benefit will be reduced by an amount equal to two-thirds (2/3) of your pension. She has not worked enough on her own record to claim a retirement benefit. That’s one of the most commonly asked questions that I hear whenever I speak or lead a workshop on Social Security. What a farce. In many cases, this results in a negative amount so these educators do not receive spousal or widow/er benefits. For some, teaching is a second career, after they’ve spent years working in a job or a state where Social Security taxes were withheld. The vast majority of Texas school districts do not participate in Social Security, so most employees are entitled to Social Security benefits only if they paid into that system through … How to Understand Your Social Security Benefit If You Worked in Both. This is all about incentives. Pure discrimination, no other word for it! In the beginning, Social Security didn’t cover any public sector employees. For specific questions about your Social Security benefits, contact your local Social Security office. However, if your spouse is eligible for a Social Security pension, you might be eligible for a spousal or widow/er benefit. Our analysis assumes a retiree receiving $15,000 from Social Security … Her husband, Jim, worked in the public sector, and he paid into Social Security for his entire adult life. The GPO was designed to mirror dual entitlement rules and prevent anyone from receiving both their full Social Security or pension benefit AND their spouse’s Social Security benefit. After a lifetime paying SS from a variety of positions to include the military, I worked a relatively low paying admin job in higher ed for 18 years accumulating 60G in TRS pension. I worked in finance and paid into SS for 20+ years. Those affected by the GPO, such as Texas educators, have their spousal benefits reduced by two-thirds of their pension, instead of 100 percent of their personal Social Security benefit. ATPE encourages members to schedule appointments with their local Social Security offices and meet with benefits counselors to investigate their options and situations thoroughly before making any decisions. The decision lies with the employers who pay them, and in some cases by a vote among the workers … The WEP modifies the formula to prevent providing employees, such as Texas educators, who haven’t paid into Social Security with a higher percentage of their pre-retirement earnings than that given to employees who have paid into Social Security for their entire careers. Contact your local Social Security office for complete information on which benefits you are eligible to receive. The 15 statesstill offering public employees state-run pensions or teacher retirement plans instead of opting into Social Security are: These states typically … The Windfall Elimination Provision (WEP) is simply a recalculation of your Social Security benefit if you also have a pension from “non-covered” work where no Social Security taxes were paid. I have a ton of doctor bills, but pay for supplemental insurance for Medicare and pay for my 15 meds I take daily. However, if both spouses worked and are eligible for individual Social Security pensions, one spouse could still file for a spousal or widow/er benefit even though he or she is not dependent on the other spouse. Not fair that two independant pensions , cancel each other out. This is known as dual entitlement. Those are nearly indecipherable. Furthermore, ATPE encourages its members to contact their congressman and U.S. senators to reinforce ATPE’s goal of repealing the GPO and WEP. Furthermore, you may be subject to penalties and taxes on the contributions you withdraw, further reducing the value of the investment. That’s why it’s important to have a quick and easy source of information at your disposal so can make the best decisions for you and your family. Additional payroll taxes needed to support statewide Social Security would inevitably reduce state contributions to TRS, compromising the system’s stability and ultimately reducing benefits for retired educators. Get your FREE copy here. However, ATPE opposes mandating Social Security coverage for all Texas public school employees due to the possible damage it would cause to the TRS system. I went back to college, got my degree, and started teaching and no one said anything about getting my SS reduced. It is amazing to me that those who pass these laws never pass them for themselves. 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