Retirement

Hi,

There is a situation where it might happen that your retirement benefit affects the social security benefits.

When you work at a place where the employer does not withhold the Social Security Taxes out of your salary, then the pension you will be getting from that work will reduce your social security benefits.

What actually affects how the retirement benefit is calculated when you receive pension for work where social security taxes were not deducted from your pay is known as the Windfall Elimination Provision In such case a modified formula is used for calculating a person's benefit amounts, which most often results in lowering the social security benefits.

Thanks
James

Hi,

You can visit this Social Security Administration page to know more about the Windfall Elimination Provision and why a different formula is used.

Also there are some exceptions when this provision will not be applicable. Please have a look: http://www.ssa.gov/pubs/10045.html

Colin

Hi Guest,

An employee makes the contributions to pension or retirement plans in assistance with the employer under the supervision of the government. I don't think the government allows for more than one pension plan to any individual. As much as I know, if the person closes one pension plan account, then only he can apply for another legally.

Thanks