SOCIAL SECURITY & YOUR PENSION
While working for the City, Social Security taxes will not be deducted from your pay.
This is called non-covered employment and may result in your Social Security benefits being reduced by either the Windfall Elimination Provision or the Government Pension Offset Program.
WINDFALL ELIMINATION PROVISION (WEP)
Social Security uses the WEP to compute benefits for retired and disabled workers who receive a pension from non-covered employment. Unless you had at least 30 years of full-time covered employment during which you were paying into Social Security, the WEP will reduce your Social Security benefit.
The maximum WEP reduction in 2014 is $408. However, your social security benefit will never be reduced by more than 50%.
GOVERNMENT PENSION OFFSET (GPO)
The Government Pension Offset will reduce the amount of any Social Security benefit you might otherwise receive from a spouse, widow, or widower benefits by two-thirds of the amount of your ERF pension. For more details about WEP and the GPO, go to the Social Security Administration’s website at www.ssa.gov.
ESTIMATE YOUR SOCIAL SECURITY BENEFIT
Social Security provides a Windfall Elimination calculator on their web site at www.ssa.gov.
The calculator allows you to estimate your Social Security benefit if you have a pension from work not covered by Social Security. You need to enter all your past earnings taxed by Social Security. To find your Social Security earnings, you’ll need a Social Security Statement. You can download your annual statement at www.ssa.gov.