July, 2021

Social Security July Newsletter

Social Security Spotlight: The Impact of Pensions on Social Security
NARSSA | Social Security Newsletter | July 2021






July 2021
Top Stories
Source: RSSA.com
“On June 24, 2021 a bipartisan bill, regarding Social Security, was proposed in Congress. The bill, ‘Know Your Social Security Act’ would mandate the Social Security Administration (SSA) to mail annual statements to workers ages 25 and over who have contributed to the system, but are not yet collecting benefits…”
Source: Yahoo
“Generally, if you are divorced, you could receive benefits based on your ex-spouse’s earnings record if your marriage lasted 10 years or longer. There are some other conditions as well. But it also turns out that you can marry and divorce the same person twice if you were married at least part of 10 consecutive years, Shedden says…”
Source: MarketWatch
“To get an idea when you might consider this “claim-suspend-reclaim” strategy, I reached out to Martha Shedden, co-founder and President of the National Association of Registered Social Security Analysts. One scenario that she highlighted in an interview is someone at age 62 who has lost his/her job. Claiming Social Security would help that person make ends meet while looking for a new job.”
Source: U.S. News & World Report
“Those who are requesting updates to their Social Security record also cannot use the online service. “If you plan on making changes to your Social Security card, such as a name change, you will not be able to request a replacement online,” says Martha Shedden…”
Source: Times Union
“FICA taxes are nonrefundable payroll taxes and are often mistaken for just another income tax. Despite what many individuals think, the amount of FICA taxes paid by a worker is not being saved in a separate account to fund their individual future retirement benefit…”
Source: Next Avenue
“The closest thing to my heart is being able to help others in my age group to make this [Social Security claiming] decision, because I’ve seen the huge amount of difference it makes financially, NARSSA co-founder Martha Shedden, who’s in her 60s, told “Friends Talk Money…”
Source: Yahoo Finance
“Inflationary fears have been worrying social security recipients about their cost of living adjustments to their monthly checks, but this year might see one of the biggest increases yet.”
Ask Martha
Question: My mother is currently collecting Social Security. My father passed away in 2002. Can she still apply for survivor benefits after all this time? If so, will she get back pay from 2002 to present year?
Response: Yes, she may be able to collect a higher benefit if the survivor benefit amount is larger than her own retirement benefit amount that she is currently collecting. Survivor benefit applications cannot be made online so she should file the application with a Social Security representative, either by telephone at 800-772-1213 or at your local office. If the latter, call the 800 number to schedule an appointment. Survivor benefits may be paid for up to six months retroactively.
Social Security Spotlight: The Impact of Pensions on Social Security
What is the Windfall Elimination Provision (WEP)?  The WEP is a rule that applies to retirees who are eligible for a Social Security retirement benefit from a job(s) that paid into the Social Security system, but who also receive a pension from a job that did not pay into the system. This “non-covered” pension will reduce the amount of their retirement benefit.

Can the WEP eliminate your Social Security retirement benefit entirely? The WEP can reduce a Social Security retirement benefit by up to half the amount of your pension, but the law ensures it cannot eliminate your entire benefit.

Will my foreign pension be subject to the WEP? Possibly. It depends on whether or not the foreign employer withheld U.S. Social Security taxes from your pay and whether or not the foreign employer’s country has a “totalization agreement” with the United States.

What is the Government Pension Offset (GPO)?
The GPO is a rule that applies to a spouse, widow, or widower who receives a “non-covered” government pension, but is also eligible for a spousal or survivor benefit.

How does the GPO affect the spousal or survivor benefit? This “non-covered” government pension will reduce the spousal or survivor benefit by two-thirds of the amount of your government pension.

Learn more about pensions and benefits here.

Case Study of the Month
Social Security isn’t just for retirees. I recently worked with a young client who lost her spouse who was also young. She learned that her deceased husband’s benefit would be calculated differently since he did not have 35 years of earnings. She learned that each of her children under 18 years old would be eligible to receive 75% of her husband’s PIA (Primary Insurance Amount) and that she was eligible to receive 75% of husband’s PIA until her youngest child turns 16. She also learned that their benefits would not exceed the Family Maximum threshold. For many young widows and widowers, Social Security is not top of mind and many don’t even know that they may qualify for benefits. My client was grateful to have worked with an RSSA.


Consult with an RSSA to optimize your benefits
Most people make a sub-optimal filing decision, losing out on money they are entitled to. An RSSA can help you optimize your Social Security benefits and support you in making the best decisions for your personal situation. Request a consultation today. Get help now.
Train to become a Social Security expert
Are you a financial or state-licensed professional? Download our free white paper and discover the benefits of becoming a Social Security expert and offering Social Security advisory services to your clients. Ready to sign up for our self-study program? Sign up now.

Contact us: 1-800-698-1350 | info@rssa.com
No longer want to receive our newsletter? Click here
 Click here to unsubscribe.
68 South Service Road, Suite 100 • Melville, NY 11747 • United States

Back to Newsletter Archive