O/T Social Security changes
#41
Burning Brakes
Depends where you worked. No scam necessary in our agency, as after X years we got 80%, so the offset, even though some of us had enough previous years of SS payments, would likely keep any additional SS checks in the future at a minimum.
No SS payments were nice, but sworn officers were paying close to 12% in pension payments while nonsworn people paid 4%. After retirement that 12 % payment going away is a nice bonus.
No SS payments were nice, but sworn officers were paying close to 12% in pension payments while nonsworn people paid 4%. After retirement that 12 % payment going away is a nice bonus.
#42
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#43
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I'm not sure what IIRC stands for but military retirement pay, for active duty with 20 years minimum, starts the month following when the person retires from active duty. There is no minimum age requirement for active duty retirees. There are age requirements for military reserves and national guard.
#44
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My idea of success is not having to go to work everyday.
Retired for 15 months after 43 years of oil/gas. I can still handle non power steering backing out of the garage. The financial consultant said wait till retirement before taking ss to minimize tax bite. Worked for me.
Retired for 15 months after 43 years of oil/gas. I can still handle non power steering backing out of the garage. The financial consultant said wait till retirement before taking ss to minimize tax bite. Worked for me.
#45
Race Director
Actually, it is even worse............ try working part and full time before and during school, then 30 years in Government and then 10+ in the private sector, winding up with well over 40 quarters of total SS eligibility - only to be told that you will get none of your SS contributions back due to the "Government Pension Offset" and "Windfall Elimination Provision" rules in SS.
Somebody out there is enjoying my contributions............
The "scam" is on the Federal Government's part!
#46
Race Director
I'm not sure what IIRC stands for but military retirement pay, for active duty with 20 years minimum, starts the month following when the person retires from active duty. There is no minimum age requirement for active duty retirees. There are age requirements for military reserves and national guard.
#47
Team Owner
Thread Starter
Nope - 5 years = 20 quarters, not meeting the 40 quarters minimum requirement, so there would be no SS benefit at all..... even with paying in.
Actually, it is even worse............ try working part and full time before and during school, then 30 years in Government and then 10+ in the private sector, winding up with well over 40 quarters of total SS eligibility - only to be told that you will get none of your SS contributions back due to the "Government Pension Offset" and "Windfall Elimination Provision" rules in SS.
Somebody out there is enjoying my contributions............
The "scam" is on the Federal Government's part!
Actually, it is even worse............ try working part and full time before and during school, then 30 years in Government and then 10+ in the private sector, winding up with well over 40 quarters of total SS eligibility - only to be told that you will get none of your SS contributions back due to the "Government Pension Offset" and "Windfall Elimination Provision" rules in SS.
Somebody out there is enjoying my contributions............
The "scam" is on the Federal Government's part!
The wife is regular CSRS and so she got the full whack on GPO and WEP; even with all of her 40 quarters in under SS. Yes, it sucks out loud...
She will get a bit playing off spousal SS benefits from my earnings but basically nothing on her own record..
Now - here is a weird loophole my wife fell into when she retired CSRS 5 years ago (could be gone now). An employee was allowed to contribute up to 10% of their lifetime gov't earnings into the CSRS as a voluntary contribution, retire, convert that amount into an IRA and THEN roll it into a ROTH immediately with no annual cap on the upper contribution limit and no tax consequences.
So, we herded $150K through that loophole and she retired with an immediate $150K in a ROTH. All legit....my financial planner was amazed we could get away with that.
Last edited by Frankie the Fink; 04-27-2016 at 03:55 PM.
#48
Instructor
I had planned to retire at 62, which I hit 4 months ago. But when I told the boss last summer of my plans, he made me the offer I couldn't refuse, Full Pay & Benefits, work 3 days a week. I might just stick around a year or two and see my SS benefit grow a little bigger...
#49
Team Owner
Thread Starter
I had planned to retire at 62, which I hit 4 months ago. But when I told the boss last summer of my plans, he made me the offer I couldn't refuse, Full Pay & Benefits, work 3 days a week. I might just stick around a year or two and see my SS benefit grow a little bigger...
They weren't happy but you'll find out your time is terribly precious at our age...you'll hit that point somewhere along the line
#50
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That's called the 'golden handcuffs'. I had the same deal consulting until I finally had to say 'enough' and bail on my Washington DC clients. Then they let me work out of my home in Florida at full pay for the last 5 years of my gig.
They weren't happy but you'll find out your time is terribly precious at our age...you'll hit that point somewhere along the line
They weren't happy but you'll find out your time is terribly precious at our age...you'll hit that point somewhere along the line
We did a couple trips last fall and are planning two weeks in Alaska (renting a motor home) in late August.
#51
Safety Car
#52
Nope - 5 years = 20 quarters, not meeting the 40 quarters minimum requirement, so there would be no SS benefit at all..... even with paying in.
Actually, it is even worse............ try working part and full time before and during school, then 30 years in Government and then 10+ in the private sector, winding up with well over 40 quarters of total SS eligibility - only to be told that you will get none of your SS contributions back due to the "Government Pension Offset" and "Windfall Elimination Provision" rules in SS.
Somebody out there is enjoying my contributions............
The "scam" is on the Federal Government's part!
Actually, it is even worse............ try working part and full time before and during school, then 30 years in Government and then 10+ in the private sector, winding up with well over 40 quarters of total SS eligibility - only to be told that you will get none of your SS contributions back due to the "Government Pension Offset" and "Windfall Elimination Provision" rules in SS.
Somebody out there is enjoying my contributions............
The "scam" is on the Federal Government's part!
We just had a big debate in our state to increase teacher pay. It passed and their pay will go up. But nobody factors in the great pension and benifits that nobody in the private sector (for the masses) gets. Working any job in the private sector for 20 years, then retiring at age 42 is unheard of.
Last edited by ghostrider20; 04-27-2016 at 10:06 PM.
#53
Race Director
Pensions are non existent in the private sector, and 401K's for the most part are self funded, with the average of 3% match. At 40 yrs old, social security will most likely be non existent for anyone who the government deems "not necessary".
We just had a big debate in our state to increase teacher pay. It passed and their pay will go up. But nobody factors in the great pension and benifits that nobody in the private sector (for the masses) gets. Working any job in the private sector for 20 years, then retiring at age 42 is unheard of.
We just had a big debate in our state to increase teacher pay. It passed and their pay will go up. But nobody factors in the great pension and benifits that nobody in the private sector (for the masses) gets. Working any job in the private sector for 20 years, then retiring at age 42 is unheard of.
#54
#55
Race Director
Being vested is one thing, the minimum age at which you can begin to collect is anther. I don't know how it is where you are, but here in CA the minimum age to begin collecting is typically 55 except for public safety which is at 50.
If you know of some agency that allows a draw at 20 years of service regardless of age (your example of age 42) I'd be interested to see a specific reference and link to their web site. Otherwise I doubt it.
If you know of some agency that allows a draw at 20 years of service regardless of age (your example of age 42) I'd be interested to see a specific reference and link to their web site. Otherwise I doubt it.
#56
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I completely agree with FTF I retired last July at age 60 and have had 5 offers to go back to work, which I politely (never burn bridges) declined without a second thought. I see so many people wait until they are 65, 70 or older to retire (I had 2 guys working for me that were 80!) and then have health issues before retiring or soon after. I have several friends in this situation. I chose to retire at 60, when we are both lucky enough to be healthy, so my wife and I can enjoy ourselves and travel because you never know when a health issue will show up.
We did a couple trips last fall and are planning two weeks in Alaska (renting a motor home) in late August.
We did a couple trips last fall and are planning two weeks in Alaska (renting a motor home) in late August.
#57
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I wanted to get out as soon as I was financially able and enjoy life. Travel, enjoy my grandkids, have a hobby, etc. before I'm either too old or too sick to enjoy it. The only reason I didn't retire at 60 was because we didn't have the house and car paid off. Say what you will about pensions, SS, and 401k's, but starting retirement life with zero debt is the only way to go, IMO.
I was fortunate enough to do exactly as you stated at age 60; retire with zero debt. Best decision I've ever made.
#58
Being vested is one thing, the minimum age at which you can begin to collect is anther. I don't know how it is where you are, but here in CA the minimum age to begin collecting is typically 55 except for public safety which is at 50.
If you know of some agency that allows a draw at 20 years of service regardless of age (your example of age 42) I'd be interested to see a specific reference and link to their web site. Otherwise I doubt it.
If you know of some agency that allows a draw at 20 years of service regardless of age (your example of age 42) I'd be interested to see a specific reference and link to their web site. Otherwise I doubt it.
#59
Racer
I completely agree with FTF I retired last July at age 60 and have had 5 offers to go back to work, which I politely (never burn bridges) declined without a second thought. I see so many people wait until they are 65, 70 or older to retire (I had 2 guys working for me that were 80!) and then have health issues before retiring or soon after. I have several friends in this situation. I chose to retire at 60, when we are both lucky enough to be healthy, so my wife and I can enjoy ourselves and travel because you never know when a health issue will show up.
We did a couple trips last fall and are planning two weeks in Alaska (renting a motor home) in late August.
We did a couple trips last fall and are planning two weeks in Alaska (renting a motor home) in late August.
My friend told me this a few months after I had my stroke, which left me partially paralyzed, but mobile (enough) and still able to work and (more importantly) drive. Can't fly alone in the clouds anymore, but I'm thinking about a boat.
I'm not waiting for much anymore - always wanted a C1 (check!), shopping for a chrome bumper C3. Also shopping for garage space.
Planning is important, but unless there are dire consequences, I suggest you take the money NOW. I didn't have high BP or cholesterol and just because I had a stroke, it doesn't mean I'm immune from C.
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#60
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I hate to hear stories like that! And when you retire, you have to have a hobby or something, a reason to get up in the morning. I know of too many people that didn't and they didn't last 6 months.
Bought an acre of land in the country (not country anymore) in '85, built our dream house in 2000. Have a nice workshop and plenty of room. Early planning is the key!
Bought an acre of land in the country (not country anymore) in '85, built our dream house in 2000. Have a nice workshop and plenty of room. Early planning is the key!