I worked as an air traffic controller for 25 years. Paid into and received a pension (CSRS). I did not pay SS during that time. I also had other jobs before, during and after my government service. I retired from the government at 49. I worked 16 more years where me and my employees paid full FICA taxes. Now when I’m 65 I retired for good and applied for SS. The estimate at 65 was $1401/month. When I received my letter I only receive $921/month. IMO I am entitled to full amount for both as I paid into both the required amount. It’s the government trying to rig me out of my money. This WEP is complete BS. Penalize people who work hard and long. It’s the new American way.

@Tousanx

4 ай бұрын

I just found out about this WEP law and it’s awful. I’m in the same boat as you. I just haven’t earned enough credits into SS because of my pension.

This is the most credible retirement advice I have seen on KZread.

Never thought I'd comprehend this topic as well as I do know after watching this. Great presentation, thanks.

@HolySchmidt

Жыл бұрын

Thanks FIJ

This is the best explanation I have heard on the WEP. Thenk you for making it make sense!

Very clear video! Thanks so much for covering!

Excellent explanation. Thank you.

Geoff great video. As a retired fighter this would effect me except that I've already had my 30 years of substantial earnings from my side job so I will get all of my SS as well as my pension. But I will pass the video along to all my friends.

This was very clearly explained. My part-time work won’t clear the substantial earnings threshold for most years, but at least I know where I stand with SS now. Basically it’ll cover Medicare costs.

@HolySchmidt

Жыл бұрын

Better to find out when you have time to make some small adjustments. These often turn into big adjustment later

Thank you, this was an excellent explanation. I have a non-covered job and previously misunderstood this topic. I had been under the impression that the Government Pension Offset (GPO) was the rule for this scenario. The math from that rule had me thinking my SS benefits would be reduced to 0. I'm on my spouse's business payroll to earn SS credits, albeit not enough to reach the "substantial income" threshold. Good to know I'll at least get 40%.

This is very helpful. Thanks!

I usually agree with you but not today. Because of the GPO provision, I did not get any widow's benefits, a legacy that my late husband fully expected to leave me to supplement my modest, fixed pension. Under the WEP provision, public employees are not able to receive the benefits expected from years of working long hours after work and on weekends. Most public administrators did not disclose the consequences of these two provisions on retirement because they knew that doing so would make public service much less attractive. Both provisions need to be repealed.

@MILGEO

Жыл бұрын

From someone who has worked their entire working life in the private sector I would like to point out a couple of things that might not be obvious to you. I know a public sector employee who retired last year and I've known him for many. He complained that his salary only went up 1.5 % a year or so back. I asked him how many years has he earned less than the year before? He looked at me like I had 2 heads! I've had to pay school and property tax that went up even though I made less! I have always had to pay for my own health insurance which is no where hear the quality of coverage that public sector workers get. My daughter works for a company that oversee's those payouts. I've been paying Social Security for over 45 years and I'm told that the fund won't be able to pay the promised amount when I'm ready to draw it! I don't get paid vacations, sick time, or personal time and the only pension I will have is what I've been able to save over a long hard lifetime of work. That money along with SS is not going to be worth anywhere near what it was when it was put in even with COLA (cost of living adjustments) as well as gains on retirement savings. When you're in the private sector, you have no guarantee that you will have future earnings. There is a big benefit to anyone who is lucky enough to be able to get a public sector job and the benefits that come with it! "The grass is always greener over the septic tank" as they say!

@amygoodrich3735

Жыл бұрын

@@MILGEO But do you get drug tested , called out in the middle of the night to work storms and if you don't come to work you are disciplined. My point is there is whole lot of suck that goes into government jobs that the private sector doesn't know about.

@MILGEO

Жыл бұрын

@@amygoodrich3735 You would be surprised to know that many of us who took the private sector option have friends and family who took government jobs. I have a close friend since High School who had to take a pay cut to start working with the State DOT and he was subject to all of the inconveniences that you are talking about. As for the testing, they don't get advanced warning and are also tested for alcohol. He used to refer to it as the lottery. And you don't have a choice as to when to take it! They gave him a ticket and he was required to go immediately for the test. So he would be sure not to drink to much during the week. FYI, they offered him an early retirement package about 10 years ago that allows him to take home almost as much as his salary would be if he stayed working. He has taken a couple of other part time jobs since leaving the State although it was more out of boredom and not necessity!

@charleslemaire8137

5 ай бұрын

So you and your husband both had jobs, you for the gmvt and he in the private sector. Is your "modest" pension more than what his benefit? What would you have gotten from SS if you were also on SS? Normally, the remaining spouse gets the equivalent of the larger of the two benefits - NOT BOTH! So by you having a pension, the survivor benefit is decreased, perhaps to zero - which is just like everybody else.

@charleslemaire8137

2 ай бұрын

@@juliecortez3575 - It is the nature of GMVT that ACTs are often named the opposite of what they do. And it is unfortunate that the many associations perpetuate the thought that WEP (and GPO) are unfair, the aren't. Sadly, so many of the persons affected by the adjustments choose to have a victim mindset. Do the math! First, I would suggest redirecting the efforts toward the states that do not pay FICA so that the issue is eliminated. Perhaps you are thinking I'm so very wrong. SS benefits are calculated in a progressive fashion. Assuming all have eclipsed an income of about $12K, the non-covered pension folks that work a second/additional covered job currently get a 40% replacement rate. Normal folks who work a second/additional job get a 32% replacement rate. That Fairness act wants to raise that 40% to 90%, almost 3 times what regular folks get. So I ask, do you want fairness, were you unaware, or are you greedy? So many persons think they would love to avoid SS's FICA payments, Those non-covered folks get that chance, but they also want to be paid.

I can't remember if I commented or not. Sometimes I watch from my tv and want to comment but can't. Anyway, thank you for covering this topic. I would like to see more videos that address things like this that address the concerns of people with defined benefit plans (pensions). Sometimes I feel like we are the forgotten children of retirement planning.

This opens a significant amount of questions my wife will needto ask before she retires from teaxhing. Another enlightening video, thank you.

@HolySchmidt

Жыл бұрын

You are most welcome

@tedjohnson4451

Жыл бұрын

California K-8 Head Custodian here... I Contribute to BOTH CalPers & Social Security. 13.2% of wages in contributions. MOST Teachers in CA contribute 10% to CalStrs... AT 32 Years[Age 63+]: Teachers get roughly 77% of their Final Wages as a non-covered Pension... [[[No Social Security Contributions = No Social Security Benefits.]]] The Teachers with 5 years Prior Classified Service [CalPers Vested] can elect to stay in CalPers, contribute to Social Security, and receive roughly 110% of Final Wages between both Pensions. In my case: I will receive more than a Teacher making up to 25% more than me at Retirement.

@bbulliard

2 ай бұрын

yes. my wife's teachers retirement was subtracted from what she should have gotten with social security. what yak thought of this rule/law. and what a rip off. my wife paid into social security and teachers retirement. she should get BOTH.. just because I have 2 life insurance policies and am paying into both, doesn't mean they will subtract the one policy from the other for the benefit. what a frikin ripoff

So glad you covered this topic. As a person who worked private sector and then switched to teaching it will have an impact on me. I tell new teachers to contribute to their 403b but most scoff and say their pension will cover them. When I bring up WEP and GPO they have no idea what I'm talking about. I have several retired friends who did not receive survivor benefits from Social Security when their spouse passed.

@HolySchmidt

Жыл бұрын

Unfortunately the story is all too common.

@robloxvids2233

Жыл бұрын

403(b)s are pretty terrible. Teachers should certainly be maxing out their Roth IRA, though. And HSA. If their school allows a HDHP. HSAs are amaaaaaaazing.

@ruralangwin

Жыл бұрын

I wish I understood this . I'm pretty sure I'm impacted.

@pgpc6448

Жыл бұрын

Yes, I rolled my 403(b) into a Roth IRA, best decision I made for my future. Also, low wage teachers create diverse accounts as often as you can and watch them grow while you teach.

@colt10mmsecurity68

Жыл бұрын

Both my son and daughter got their own Roth IRA’s at age 16, when they became of legal age to work. I’ve been hounding them that they need to max out their Roth IRA’s as much as they can afford every year and to never ever touch it, until they retire. One is becoming a public school teacher and the other an air traffic controller. Both will have this WEP “penalty” affecting them. I hate that we are penalized for being financially successful and doing the right things in life for our incomes.

Thank you for the video. It's really not hard to implement those provisions. Of course people want to receive more for paying less but you want it to bet fair to the wage earners whose whole income are covered earnings.

The WEP and GPO need to be appealed!!!

Excellent. My statement listed my expected social security income at age 62 as $800. Due to the Windfall Elimination Provision, my actual social security at age 62 was less than $250 per month.

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

Thank you!!!!

@HolySchmidt

Жыл бұрын

You are welcome Tess

I worked 23 years in Germany, because I’m German, moved here, and worked 26 here in the US. I should not be penalized with WEP, that’s so unfair!

@Danielle-zq7kb

10 ай бұрын

That’s America. Very few of us outside the Federal government have pensions

@beautyRest1

10 ай бұрын

@@Danielle-zq7kb and? Your point?

@beautyRest1

10 ай бұрын

SS refunded me the money they deducted, I do not fall under WEP because of “totalization “ , meaning USA and Germany have an agreement that they honor each other working years.

@b.c.2836

9 ай бұрын

@@beautyRest1 wow, cool😎

I just recently heard of this. I am a civil servant and have a pension but my whole career I have always contributed to social security. A guy I worked with who retired from Boston PD told me he never payed into social security up there and I was shocked.

@HolySchmidt

Жыл бұрын

Interesting

@Mike-iu7ck

Жыл бұрын

if he had contributed to social security the government would just keep half of any social security he would have earned anyway because he is so "wealthy" with a pension. legal stealing.

I had no idea that this was a thing. Thanks for covering it. Since the SSA statement doesn't reflect the amount of non-covered earnings how can I be sure of the number of covered earnings that I currently do have?

Congress needs to amend social security so that everyone working is covered and PAYS into social security. The current system where some civil service employees pay into social security and others don’t is just plain stupid.

@HolySchmidt

Жыл бұрын

Thanks for the comment James

@thomast3570

Жыл бұрын

Hard to tell states what to do.

@elainejamieson81

3 ай бұрын

@@thomast3570 The States are locked into this since they opted out of SS. It would have to be a bill through Congress. It's been tried every year since I started in my Govt job in 1999. Congress does not want to end it

The WEP is such B.S. I paid into social security and reached my 40 credits to be able to collect something from the Administration when I retire. Albeit it it wouldn’t be much, but it is something. But because I became a civil servant in another career (working two careers), I’m financially penalized by the WEP. I’ll get roughly 1/3rd of what I should have gotten from SS payments, had I not had the other government career. Talk about communism in our federal tax system! None of us started working in order to pay for other recipients relying on the tax payer’s teet.

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

@charleslemaire8137

2 ай бұрын

@colt10mmsecurity68 - You don't sound very receptive, but let me offer an example: Two teacher with the same covered and non-covered work history, but from different states. Both earn a pension, but the FICA paying teacher contributes to SS during his entire work time (teaching and non-teaching), whereas the non FICA paying teacher contributes to SS only when not teaching. Note one teacher pockets the 6%, the other contributes. With respect to the non teaching earnings, assuming both teachers make more that about $15K/year, using WEP, the covered teacher will get a 32% replacement rate for that outside work. But the non-covered teacher will get a 40% replacement rate. What removal of the WEP would do is give the non-covered teacher, the fellow that paid FICA for only the outside work and was able to pocket that 6% for the teaching, a 90% replacement rate. My point is that WEP does look like a terrible thing, but it is reasonable. SS was designed to return more to lower income folks; without WEP the non-covered pension folks look poor when they are not.

@colt10mmsecurity68

2 ай бұрын

@@charleslemaire8137 It should be an equal return if one puts into FICA and meets the 40 quarters. Job “A” I didn’t pay into FICA (just calling it “SS” now). However my second job “B” I did pay into SS. So however long I paid into the SS “system,” I should receive the benefits that are commensurate to what I put in… just like the next guy that put in his taxes with SS. Granted i put in about 18 years of taxes into SS and I shouldn’t get equal nor more benefits than say someone that put in more years of work than I did. But if I put in 40 quarters, I should expect whatever that return is as the next guy who put in his 40 quarters. (40 is the minimum). Instead, I get docked 80% of what the next guy will receive for him also working until he reached 40 quarters. I’m punished becssue I had a second job with a different retirement system. But that doesn’t negate the fact that I still put into the Social Security retirement system and I should get back what I’m entitled to is all I’m saying. The WEP literally and fiscally punishes people that put in their time into the SS system and that’s complete BS. My concern is not with Rich or poor people and what they get. My concern is about people that put into the system should receive back what they’re entitled to, based on the amount that they put into the system. This is why I hate the federal government. Redistribution of wealth. I work hard and pay my fair share yet get ripped off for working too hard (two jobs). I’d just assume SS admin give me a refund on the money I did pay into FICA.

@dawnsara2566

Ай бұрын

What part aren’t you understanding? The video explains two individuals paying into social security the same amount of time but one is penalized for also working in a non covered position.

@colt10mmsecurity68

Ай бұрын

@@dawnsara2566 The part of being penalized. For example, If I pay into the the SS system for “x” amount of $$$ and for “x” amount of time, and exactly like you do, shouldn’t I receive the same exact benefits that you do? Just because I have a second job with a separate retirement plan bears non relevance to the first job I have. Apparently you don’t understand this concept. Because if I don’t receive the same SS benefits for what I put into it, EXACTLY like the next guy, then I shouldn’t be forced to pay into it at all. Evidently, there’s some politicians that agree and this is why they are trying to change this stupid SS law and repeal the WEP. As it stands now, it’s a literal “redistribution of wealth” scheme. I can’t make it any clearer for you. I hope you understand.

I can't be the only one wondering what the new irs reporting rules are going to be. Seems like there's alot of conflicting information out about the so called 600 dollar limit. I would definitely love to hear your take on this. Perhaps a video?

Thank you for this. One question. Is there any difference if the pension is a disability pension or same math?

I have a slightly different case. I have over 30 years of covered substantial earnings on my own Social Security record. I also receive a survivor benefit from my wifes non-covered work for the state. Looking at WEP and GPO, it looks like my Social Security benefit will not be reduced by the amount I get from my wife's pension. I would like to know for sure how my survivor benefit impacts my expected SSA payout when I expect to collect on my own record. Most survivor examples I've seen assume the SSA record in question is the one that had non-covered work.

Thanks for the information. I am a retired firefighter and didn’t quite understand the whole SS issue. 👍 Would it be wiser to wait until I am 70 years of age to draw SS?

Clear as mud.

SSA will be taking a bit out of my SS check because of the WEP.

Thank you for this video. Unfortunately, it doesn't talk about my situation. I am one of those who worked most of my life giving to SS and will receive a benefit. However, since 2016, I worked for a company who didn't pay to SS but instead increased my 403B by 2.5%. I plan to retire in 3-4 years and want to know what I can count on for SS. How do I figure this calculation? Curious: would it be accurate to go back to each paycheck and calculate 2.5% of the 403B total contributed by my employer? Once I have that total, what would my calculation be? I am trying to assist my income in retirement...and this part has me stumped. Thanks so much!!!

Thanks for the video. Is the math the same for a corporate pension where you were also paying into SS ?

@whatsup3270

Жыл бұрын

Usually that would not apply here. With a few exceptions ( as railroads) common corporate pensions are in addition to not replacement of social security. Simply log in to the SSA account and review your annual earning if they are present, you are good

BTW, I worked 19 years in private industry before moving to the govt sector. Basically Soc sec. money was taken but I will never reap the full benefit from it.

@whatsup3270

Жыл бұрын

WEP will only adjust your FICA taxes back to a normal rate

Holy Schmidt, that was explained very well. I never understood the WEP until now. How does that effect someone who was in the Military for 20 years, then took county government job for 25 years that has it's own pension, and what military credits?

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

I worked at the same job 43 years. Will I be exempt from reduction in SS benefits, even though I'l be getting a company pension?

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes. BTW, I have my 40 quarters because obviously I did pay into Social Security for the 1st 25 years of my work life.

@colt10mmsecurity68

2 ай бұрын

They come up with a bill every couple of years to kill the WEP. The problem however is the Democrats usually kill it before it ever passes. Dems want their tax money and how!

Great explanation, Thank You. But could you explain what happens to the former years I did pay SS before gaining employment where I did not pay SS? In other words, what happens to the money I did pay? Can I claim that money? Thanks

@dawnsara2566

Ай бұрын

He just explained it.

I cannot find any information on how the WEP affects the spousal benefit when the spouse is receiving the federal pension.

I can't help but wonder how much it costs the government (us tax payers) to implement all of these highly complex formula's and payments. I watched a good portion of it twice! Why don't we just have a simplified, less complex tax system? It seems like everyone would benefit from such a strategy, except of course the government workers juggling the numbers! Steve Forbes talked about a simple flat tax many years ago and it's been brought up by many others as well. I'm glad that you can understand this complex mess that is our tax system. They say that even the IRS specialists can't even agree with each other! 🤔

@jodylarson4697

Жыл бұрын

The reason is that it's not a simple situation. Adjustments do need to be made for lower-income workers who only contribute to Social Security and don't have any other pension. As for the flat-rate tax, it's common for people to think that the flat-tax percentage will be low, but that won't necessarily be the case. And, current tax brackets take into account that lower-income taxpayers have less money to work with. The Federal Poverty Level for a 4-person family is $27,750 (2022). If you're a single person, you are living in poverty if you make $1000 per month. So low-income people would need to be excluded even from a flat tax.

@MILGEO

Жыл бұрын

@@jodylarson4697 My whole point was that if taxpayers were not paying $ millions or $ billions to implement this highly complex tax system, as a whole a huge amount of money could be saved thus lowering taxes for all! The mere suggestion that the government can choose 1 amount to call the poverty rate across the entire country shows just how unfair and ridiculous the tax codes are. A family living in the deep south have far different expenses than a family living in say Scarsdale, NY or San Francisco, CA.

@jodylarson4697

Жыл бұрын

@@MILGEO The Federal Poverty Guideline amounts are adjusted by different programs in different states. They are just a starting point. I'm willing to bet that if a family in the deep South is in poverty at $27,750, a family in San Francisco with that income is in poverty too. The tax system used to be simpler, but over time it has become more complex. I think Congress is responsible, and obviously neither party is blameless.

@bridgecross

Жыл бұрын

Math isn't expensive. They get your earnings records from your W2s, your benefit comes out the other end. It's not like they have thousands of Federal workers grinding over slide rules.

@MILGEO

Жыл бұрын

@@bridgecross Why do they want to add 87,000 more IRS agents to conduct audits then? I wonder how much that will cost for salaries, benefits, healthcare, and pensions? Many small business owners are not W2 employee's. According to Google there are; How many pages is the IRS tax code? The Tax Code is 6,871 pages, but when you include the tax regulations and official tax guidance from IRS, it will be about 75,000 pages. These don't include sales tax which is a whole other category that can be worse and more costly than income tax! And don't forget about State tax! My own return is close to 70 pages and I'm a Sole Proprietor! I pay a CPA to do my state and Federal taxes along with sales tax. There are thousands of small businesses in this country which is where the majority of tax revenue comes from! The money that the government spends like Monopoly money! Don't take it personally but you are ill informed in this subject.

How does this affect the disability payment to a postal worker who has worked 26 years in the postal service but has to retire before the age of 62 due to disability?

How does WEP impact very low pensioners when it comes to the Wep guarantee rule?

I have worked over 40 years, 35 substantial earnings on my own accord. My first husband passed on, leaving me retirement from city/state. Because I have my own earnings, will i be affected by WEP or GPO, I am a bit confused here. Can you please tell me which one? Thank you.

So I have been teaching for the state of California fulltime since 1986. I started paying into SS from 1975 to 1986 then I started teaching fulltime. However, in 1998, I started teaching part-time in the private school sector and have been doing so ever since. In 2000, I started teaching fulltime at the private for profit university in conjunction with teaching fulltime at the California school system. I therefore had two fulltime jobs from 2000 to 2009, then went back to teaching part-time at the private institutions.. I retired from the California school system in 2018 and am collecting my STRS Pension, but still teach online for 3 private universities part-time. I turn 64 this May. I went to the SSA website and it states I have 40 credits. I looked at the chart and I will earn $2700 per month at 66 years 10 months. How will WEP affect me in this unique and complicated scenario?

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

If someone is getting $1060 from social security with just 43 credits having worked and contributed 10 years to social security, and then earns a noncovered pension of $450., Would it be correct to say his social security benefit will be $1060-$225 ( or 50% of $450) = $835 ? Does the Wep guarantee of maximum 50% reduction work out this way?

If I understand this, W.E.P. would only effect people working a public service job were they did not pay SS taxes on that public service job with a pension. My W-2 has always shown social security taxes being deducted for my job. I assume this discussion does not apply to me. But it is disconcerting to think the number the Social Security web site estimate gives could be wrong. Guess I need to talk to an accountant to know the for sure. I am retired and not taking Social Security yet, but having SSI cut by W.E.P. would be a big blow.

@ruralangwin

Жыл бұрын

Oh my gawd! I just threw out 35 years of pay stubs showing SS a deductions from a pension position with state and county!!!!

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

My wife and I met with a Social Security counselor and discovered WEP isn't the only way your retirement as a teacher who's employer chooses not to pay into SSI, there is also the GPO. Government Pension Offset. The GPO has similar application to SSI as the WEP does, simply means my wife will get less than minimum SS benefit and I will need to get an insurance policy even though I am retired military and will also retire from civil service taking advantage of survivor benefits.

Would this affect a school teacher who DID contribute to ssa during employment and is drawing a pension now? Or in order for it to fall under windfall, does it have to be a teacher who did not contribute to ssa during employment and before drawing a pension?

@charleslemaire8137

2 ай бұрын

WEP only affects persons who worked in a non-covered roll (teachers, police, fire in the 15 states) and also worked in another covered job (paid FICA). It sounds as if you are in one of the other 35 states.

So my husband, who has a pension, does not receive SS spousal benefits?

I am collecting as a deferred CSRS employee. It shocked me that there are NO adjustments made for earnings at all! Your pension is based on 1992 (for example) income! How is that right? they hold onto it for decades and you get zero interest, credit or COLA.

Is WEP affected by age 72 retirement?

There’s also social security totalization agreements and their impact on WEP

@beautyRest1

Жыл бұрын

True, if you qualify for a certain benefit , but need your earning records from both countries (in my case Germany and US) you may not fall under WEP because of totalization! Not many people know this!

@beautyRest1

Жыл бұрын

Yesterday, SS REFUNDED MY WEP they deducted, and I no longer fall under WEP , because of totalization!

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

Thank you so much for this information! My husband was a policeman for 33 years, did not pay into SS. He was also in the Air National Guard for 34 years, did pay into SS. He is retired from both these professions and is still working. He is 64. This will definitely affect our SS. I was/ am a homemaker. Looks like we have some work to do about the substantial earnings amounts during those years.

@Mike-iu7ck

Жыл бұрын

as long as he has contributed 30 years or more in SS he will be exempt from the unlawful WEP penalty

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

@juliecortez3575

2 ай бұрын

@@Mike-iu7ck There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

Very helpful. Wife is a school teacher who does not pay into social security, but does have enough credits to qualify for a small amount of social security benefit once she reaches 62. You mention it at the end, but have you done a video on how this affects survivor benefits? I will qualify for a monthly ss benefit of approximately $2600 at 62 and was wondering what would be best for her.

@Mike-iu7ck

Жыл бұрын

she will only get half of what she is entitled to based on the standard formula of money earned, years worked and so on because of the unfair WEP. this is legal theft.

I’ll be 62 in 2024 and have both non-covered and covered earnings. I’ve made several calls to SSA here in NC, and I’m flabbergasted at how difficult it’s is to get the calculations for your expected social security benefit with WEP. They just don’t seem to have any idea how it works. In fact, one employee told me to call my employer since the SS benefit doesn’t change, the pension amount does! I’ve yet to get an answer I feel confident in. Is there someplace in SSA that actually understands WEP and can do the calculations?

@beautyRest1

10 ай бұрын

Most people I that work for SS know little if any about WEP. The formula is very difficult, only an expert will be able to calculate it. When you get the statement for the non covered pension, mail it to them, they sent you a questionnaire and then will let you know how much they deduct. It took me a long time too! Any questions let me know!

@Bitster

10 ай бұрын

@@beautyRest1 thank you so much!

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

I'm just wondering where and how to find out IF WEP applies or not. E.g., my case is I worked abroad over 20 years, not paying in, but my recent statement says I can get $1200 pm at age 65. Should I hire a CPA to find out, or do I have to hire a specialist?

@beautyRest1

Жыл бұрын

There is a company in California, they do it for you as a courtesy . Andre Hall in Irving California, give them a call. Hall wealth management, give them a call!

@KeunMikeun

Жыл бұрын

@@beautyRest1 Thank you!

The substantial earnings component really makes this tough. I have 22 years of substantial earnings and a pension. I still work but it is below the substantial earnings $ amount. In short, my part time work which is 20 plus hours a week provides me no real Social Security benefit.

@robloxvids2233

Жыл бұрын

It does since it's still helping you get a higher total earnings number (the amount you will divide by 35). But yes it's not moving the needle much. Since you already are above 20 years of substantial earnings it's worth it to do what you can to get to $27,300. Each year you do that gets you an additional 5% of $1115, or $55.75 per month until you die.

@giannab2302

Жыл бұрын

@@robloxvids2233 Thanks for that answer to their question. I was feeling a bit depleted until I read your response. 🙂

I just realized that I am impacted by WEP, so I have 24 years with SS contribution and 5 without it because the last job had 403b retirement plan. Still don't have a clear understanding of what should I do moving forward to fix this mess. I am 53 y.o and resigned from that job after 5 years. Should I be in the private sector instead? Please help!

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

@dawnsara2566

Ай бұрын

You need 30 substantial years paying into social to not be impacted by wep

If it couldn't get bad enough with this government overreach lets talk about the person who has been a sole operator small business owner and paid into the system the the 6.2% employee AND the 6.2% employer share. Talk about BEND points, I call them bend over points. Yes I have a state pension and did not pay into SS in that job but have been contributing this 12.4% from my side business since 1995. However I did not always make the "substantial earnings" bar so much has been lost. Just have to eat that government turd sandwich I guess.

@HolySchmidt

Жыл бұрын

I hear you.

@whatsup3270

Жыл бұрын

have you calculated the break even on funds paid in verses collections

@eddiane

Жыл бұрын

@@whatsup3270 hello. I am not sure what this means so the answer to that is no. Im only 60 so I am not drawing anything yet and still doing my side job. If there is any help in recovering anything I am all ears. Thanks for the reply.

@whatsup3270

Жыл бұрын

@@eddiane let us look at a guy who does 40 years equal to $42,000/yr in 2021 dollars and ignore WEP and set growth rates (or R.O.I.) at 2%. His SS check estimated is $1,767 so when did he draw out what he put in with the growth of those funds? If he paid SS on all his earnings his 211th check was on him but his 212 (17 yrs 7 months) check wasn't. Now what if he did 20 years state (no SS) and 20 years standard, it drops to 76 ( 6 yrs 4 month) Now what if he did 30 years state (no SS) and 10 years standard, it drops to 37 ( 3 years and 1 month)

@juliecortez3575

2 ай бұрын

@@whatsup3270 There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

Question: I'm currently a police officer. My department...for what ever reason...DOES pay into Social Security. Per what I've been able to find on WEP, I will have over 30 years where I've paid into Social Security. Please correct me if I am wrong, but the WEP should NOT apply in my particular case, as I have been making substantial payments into Social Security for 30 years. Is that a correct statement.

@elainejamieson81

3 ай бұрын

No reduction for you as long as you paid into SS for 40 quarters and 30 years would do it.

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

NYPD employees are subject to FICA on all of their earnings, so this is a bad example. Putting that aside, how does the SS administration know that a worker has non- covered wages and what pension benefit they are entitled to? Thanks.

@whatsup3270

Жыл бұрын

all W-2 and IRS records

@elainejamieson81

3 ай бұрын

SS checks with the IRS to see where you worked and what you have earned.

I worked for a train system that did not partake in Social Security tax for 10 years. I left and went to a State job for 30 years that made SS deductions out of my check, total work years 40. I applied for SS at age 62, and was shocked to find that my benefit was reduced because of my not contributing to social security for ten years. I understand that I didn't get benefits for ten years because of not contributing, but to be taxed for it? From what I understand (explained to me by the SS worker in the office) President Obama introduced the elimination of the tax, but our folks in Washington DC are still dabbling about it. Good grief!

Great video, sir! I think this will affect me, as I have worked for public and private sectors. Are "substantial earnings" $27,500? Do section 218 agreements help us at all? I'm not exactly sure what those are but maybe just an allowance for public jobs to withhold SS?

@skibum6422

Жыл бұрын

No, there is a chart on SS website that shows what the substantial earnings are for every year.

Does my husband’s pension affect my social security benefits? I’m fully vested and am waiting to turn 67. I may even wait until 70. Does my husband not get my survivor benefits, because he has a pension?

my debit express card..

Can I collect off my spouses SS

Thank you, useful information for my circumstances.

@HolySchmidt

Жыл бұрын

You are welcome

Thank you. My situation exactly

@HolySchmidt

Жыл бұрын

You are welcome

if 2 people earn and contribute the same amount of money, years etc. they should both get the same amount at retirement. thats fair. but that is not the case using the WEP formula. what about a retired military that goes to work after retirement and earns an additional pension by continuing to work for decades more? the government will penalize him/her for doing so good for themselves. that is not a windfall. that is hard work.

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

This is complete and unadulterated BS. My cousin worked 20+ years paying into SocialSecurity, then spent 13 years as a state compensated Crisis Counselor, not paying into SS. Prior to retiring she spent an additional 3 years paying into SS as a RN. She is drawing $252 monthly from SS due to this bizarre ruling instead of $1304 which she earned. I have retirement from 20 years in the military plus retirement from 20 years in industry in addition to SS. I am not penalized for receiving retirement funds outside SS, where is the logic in this “windfall” penalty.

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.

Why should we be penalized for SS taxes before working at a pension job? Equitable tolling.

@PositiveMommaLife

4 ай бұрын

Why can’t everyone have a pension?

@Blgtn43

4 ай бұрын

@Quiltermom Those of us who paid into social security before taking the job with a pension lose what we paid into it. Years of paying SS. This is taxation without representation at its finest. Also, what does a state pension have to do with federal taxes? If your company has a 401k, you should not get SS. For the record, we pay into our pensions, too.

There is a hidden issue. A social security payer can easily have $250,000 of payments being controlled by the SSA which is loaned to the US Treasury. Not so for outside pension people. This means the outside pension people should get more for less which they typically do. So they benefit from hidden tax which is the low returns from SS accounts which are used to lower taxes

@HolySchmidt

Жыл бұрын

Thanks for the comment WU. Many people feel the same way

2022 - Substantial earnings of $27,300 calculates over a three month summer period to a job that would pay $109,200 per year. If you were a teacher and found a job like that most likely you'd quit teaching and work that job full time. So I find the statement that teachers or other full time workers could make the substantial earnings in such a short period of time ridiculous. Working over the weekends so you have no free time with family? Where's the work-life balance there? I find this foolish talk. Note that the higher end bend point percentages don't change meaning that highly paid administrators will feel the pinch to a lesser degree than lower paid earners as a percentage. WEP is truly a wicked scheme to hurt the poorly paid and keep the more highly paid happy.

Biden voted for this.

@giannab2302

Жыл бұрын

Was that necessary? sheesh

@SandfordSmythe

9 ай бұрын

It was a bi-partisan plan

@Tousanx

4 ай бұрын

Wrong this was voted into by Ronald Reagan

@Blgtn43

4 ай бұрын

@Tousanx Presidents don't make law. Congress voted this into law, and Joe Biden was a senator who voted for it.

@elainejamieson81

3 ай бұрын

lets have an adult conversation please....

👍👍

Good reason to have an advisor that understands the seemingly very complicated rule book. Thanks for the thought provoking analysis, Mr. Schmidt.

@HolySchmidt

Жыл бұрын

My pleasure

How could this help the lower income ,,poverty,, bracket, let's say someone goes in the army ,, poverty,, level then then gets paid minimum wage then works as a janitor for a school district for fifteen years . ,, your contribution would be too low to get a fair AIAE ,, SUBSTANTIAL EARNINGS...witch would decrease the WEP takeout ,,stolen,,😢

That really was not simplified.

H.R. 82 needs to pass to get rid of this pure crap law that we have. There is no way that an individual who has put in 25+ years in the private sector, paid into SS as required shouldn't be eligible to receive their own money back. Just because they have moved onto a pension job shouldn't mean they lose what's rightfully theirs. FYI, you have the Democrats to thank for this bill that has reduced hard working people's retirement income since 1983.

@beautyRest1

Жыл бұрын

It was signed by Ronald Reagan , wasn’t he a republican?!!

@juliecortez3575

2 ай бұрын

There is legislation that has been introduced in 2023 to eliminate the UNFAIRNESS of WEP, called Social Security Fairness Act of 2023. You can look up more info here on KZread. Write your congress people to support this! Rep. Clay Higgins is one of these heroes.