Social Security Issues – A Returnee Asks About His Social Security

By Russell Gloor, Public Safety Advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens.

Dear Rusty: I retired with (cash) $4600 per month Civil Service Retirement System (CSRS) from the US Postal Service in December 2022. I am 66 years old and will receive full retirement age in November of this year. I know that at that time I will not be under the temptation of “reward”, but I will be affected by the terrible “dominion”. I HAVE earned enough quarters and will be eligible for a small social security benefit. First question: will my Social Security benefits be reduced, or eliminated? Second: will it make a difference if I apply in November or when I’m 70? I currently work part time and pay Social Security FICA taxes. Third: if my SS is terminated, do I have to apply? Fourth and last: I am married, filing jointly and my wife currently receives SS benefits (only). Can I also be affected by the “spiritual” provision if my wife predeceases me?

Thank you in advance for your service as a Social Security Consultant.

Signed: Enraged to Offset and fall to Windfall

Dearest: You are correct that when you reach full retirement age (FRA) in November you will no longer be subject to the Social Security “earnings test,” which limits how much you can earn while collecting Social Security benefits. first. But if you apply for your Social Security to start in November, your SS benefits will be affected by the Windfall Elimination Provision (WEP) because of your unencumbered CSRS pension (because you didn’t pay into SS when you are still receiving CSRS pension) . As you may know, only federal employees retired under the CSRS (Civil Service Retirement System) are affected by WEP; new Federal employees retiring under the current FERS (Federal Employee Retirement Program) are not affected.

Because of the CSRS pension, your Social Security benefits will be reduced, but not eliminated. The amount of the deduction will depend on the number of years of non-government work you did (where you paid into Social Security). Usually, those who have spent their entire lives receiving a pension without contributing to SS, but those who have a separate SS pension, will see their SS benefits cut in half.

To answer your second question, your benefit will continue to grow if you wait until age 70 to claim Social Security. Benefits taken after full retirement age earn “delayed retirement benefits” (DRCs), which increase your final benefit amount. Your benefit will still be reduced by WEP, but your final payout will be higher because you waited longer to make a claim.

As for your third question, your SS benefits will only be reduced (not eliminated), so it is important to apply. Otherwise, you lose the Social Security benefits you’re entitled to.

Finally, if your spouse predeceases you, the CSRS pension will also trigger another arrangement called the Government Pension Offset (GPO). The GPO will reduce your surviving spouse’s benefit by 2/3rds of your CSRS state pension amount, which can eliminate any spousal benefit you are entitled to (except the so-called “death benefit” – a one-time lump sum of $255 paid to the surviving spouse).

This article is for informational purposes only and does not constitute legal or financial advice. It features the opinions and comments of AMAC Foundation staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other government agency. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.