Without knowing all the personal numbers its really hard to know what the impact will be. Which Social Security benefits am I eligible to receive? Quit complaining. Texas lets each individual school district decide whether they want to enroll their teachers … If you withdraw from TRS before meeting the minimum eligibility requirements for a TRS pension, you will not be subject to the WEP. This is capped at a monthly reduction of $498 maximum WEP reduction (for 2021). I I have 17 years in as a teacher and take retire from teaching. Before you make your elections on your teacher’s pension, you must consider how your monthly cash flow would change with a spouse’s death. The dollar amounts in the formula vary yearly according to inflation. This phase-out of the WEP reduction offers a great planning opportunity if you have worked at a job where you paid Social Security tax. I dont teach in Arizona. I worked 20 years in banking, 10 years of retail…and the last 19 years as a para educator , not making enough to live on (thank God I have a spouse)……. ATPE has also joined forces with like-minded groups in 11 other states in the Coalition to Preserve Retirement Security (CPRS). ATPE encourages members to schedule appointments with their local Social Security offices and meet with benefits counselors to investigate their options and situations thoroughly before making any decisions. My girlfriend worked for The City of Jacksonville, FL. Upon retirement, he began receiving his California teacher’s retirement pension of $3,000 per month. But for those who do, or can get close, it’s worth taking a closer look. You will receive a Social Security benefit, but if you have taught (or intend to teach) for five or more years in a non-Social Security district, you’ll likely be affected by the WEP. There’s no doubt this can be a complex topic and most of the teachers that I’ve talked to have seen lots of conflicting information — so let’s clear up the confusion and take a closer look at the rules on teacher’s retirement and Social Security. Authored by U.S. Rep. Kevin Brady (R–TX), the bill is an attempt to address inequities of the WEP. It will be reduced by the WEP. coverage agreements with the Social Security Administration, The Best Explanation of the Windfall Elimination Provision, What You Should Know About the Government Pension Offset, https://www.ssa.gov/planners/retire/anyPiaWepjs04.html, https://secure.ssa.gov/apps10/poms.nsf/lnx/0202608102. However, you would be eligible for spousal and survivor benefits. There are a couple of lists published but they are not accurate. I agree that this is unfair to those who have put in their quarters to social security and just because they chose.to teach their social security is split in half. Jane is a retired Texas teacher. I have been teaching from 1996-present and paying into Mass Teachers Retirement System. The only way to be exempt from the WEP is to pay into Social Security for 30 or more years of substantial earnings. In the beginning, Social Security didn’t cover any public sector employees. She paid into the Teacher Retirement System of Texas for 30 years, and she receives an $1,800 per month annuity. All eligible employees of The University of Texas System are … Who can we speak with to get these rules changed? What is the best scenario for her to receive her TRS & spousal support? For those of us who are vested in TRS, meaning you have a least 5 years of service, are eligible for a pension … However I get from the Teacher’s retirement system every month will getting remarried affect that? My question. Teacher Retirement System (TRS) • Social Security Program Optional Retirement Program Retiree Health Insurance Teacher Retirement System The Teacher Retirement System is financed through an employee tax sheltered payroll deduction. Click here for contact information for the office nearest you. This is all about incentives. If my husband worked at the schools for 27 years and has passed away three months ago am I eligible for Social Security even though he had TRS. The 15 statesstill offering public employees state-run pensions or teacher retirement plans instead of opting into Social Security are: These states typically … Thus, Texas teachers may receive very little or no Social Security benefits at all, even if they paid Social Security taxes through another employer or if their spouse paid Social Security taxes. Other education agencies and institutions that participate in Social Security and the Teacher Retirement System (TRS) Region Service Centers: 20 (San Antonio) 17 (Lubbock) 15 (San Angelo) 12 (Waco) 2 (Corpus Christi) Dallas County Schools (bus provider) Harris County Department of Education; Many Texas … This leaves your benefits which will be subject to the WEP. For example, if you had chosen to stay at home as the household manager, you would not have paid into the Social Security system. You will be subject to the Windfall Elimination Provision (WEP). Way to confusing for me. I get $1100 a month and I’m 72. The formula used to figure Social Security benefits is designed to provide low-income workers with a larger percentage of their pre-retirement earnings than that provided to high-income workers. Obviously, not everyone has the option of accumulating enough years to wipe out the big monthly WEP reduction. For more information on the Windfall Elimination Provision, see these helpful resources: The nitty-gritty of the Government Pension Offset (GPO) is simple. If you want to see how it will affect you, go to the SSA’s WEP calculator at https://www.ssa.gov/planners/retire/anyPiaWepjs04.html. If a teacher is covered by her state's Teacher Retirement System (TRS), but is otherwise eligible for Social Security benefits, some special rules apply that may reduce the amount the teacher … As a teacher in Texas, you are probably not paying into Social Security while you teach. as TRS or Social Security, mitigates the risk of a retiree who due to longevity, market volatility, or failure – to invest adequately – outlives his or her savings. I’m a Michigan public school basic teacher with 34 years. Your doctors should accept Medicare. If passed, the ETPSA would finally put public education employees on a level playing field with all other employees in calculating Social Security benefits. Simply being eligible for a pension through TRS does not preclude you from receiving spousal benefits; however, since most people’s TRS pension is greater than a typical Social Security benefit, the two-thirds reduction effectively eliminates the spousal benefit. This is effectively a penalty for teaching (what some call the hero’s penalty). I have a ton of doctor bills, but pay for supplemental insurance for Medicare and pay for my 15 meds I take daily. It’s very active and has some really smart people who love to answer any questions you may have about Social Security. Teacher Retirement System TRS is a defined benefit retirement plan governed by Internal Revenue Code Section 401 (a). “Can I get teacher’s retirement and Social Security?”. There are several school districts that participate in Social Security as well as TRS, including my own, Austin. Everyone knows you became eligible for Medicare at 65. Or am i going to be such a reduced amount because of pension. It penalizes people unfairly. At 30 years of, The amount of monthly Social Security benefit you can expect, The number of “substantial earnings” years you already have, How additional years of substantial earnings will affect the WEP penalty. Thanks Ron Landers, No. SS says on her annual statement that she is eligible for about 350.00 a month. What is my best strategy to maximize my benefits at retirement? However, ATPE opposes mandating Social Security coverage for all Texas public school employees due to the possible damage it would cause to the TRS system. This so-called “double-dipping” law is absurd. The Social Security Administration will take in account the amount of your TRS Pension payment and will reduce your Social Security amount you are able to draw. Widow/er benefits are usually equal to 71 percent to 100 percent of the spouse’s benefit and are paid to the dependent spouse after the other spouse’s death. It is set to climb to 8.25% by 2023. … Presently receive SS benefits and Medicare A, BUT must inform them of my retirement fro teaching for sake of WEP and for me to start receiving the mandatory part B (with fee deducted from remnants of SS benefits). One of the few districts that do. When figuring incomes in this way, employees such as Texas educators, who work most if not all of their careers in jobs that do not pay into Social Security, appear to have low incomes. For visual learners (as most of us are), this is where I break down the complex rules and help you figure out how to use them to your advantage. The GPO reduces the amount they are eligible to receive as a spousal or widow/er Social Security benefit by two-thirds of the amount of their TRS pension … The trick in my case was to retire, early collect the TRS pension for as long as possible before applying for SS. However, if both spouses worked and are eligible for individual Social Security pensions, one spouse could still file for a spousal or widow/er benefit even though he or she is not dependent on the other spouse. You will not … Which offset rule will affect me? This is discrimination. I plan on retiring in 2 years at 54 drawing my TRS retirement. Will working my last five years before retirement in a position covered by both TRS and Social Security exempt me from the WEP? If she dies prematurely after electing a JOINT ANNUITY OPTION, will I still receive the full amount of my survivor benefit from her election? In 2004, when I retired from teaching(29 years), I worked 1 day in a TX district that did pay social security. Once a person reaches 30 years of substantial earnings he or she is restored to the full 90 percent multiplier and is no longer affected by the WEP. The normal Social Security calculation formula is substituted with a new calculation that results in a lower benefit amount. Not to me. The ETPSA would repeal the WEP and replace it with a new formula that would treat public-sector employees the same as private-sector employees by basing each employee’s benefits on his or her actual Social Security contributions and work history. Now because of WEP I’ll only receive approx. You should only put in your years of earnings that were covered by Social Security. I… Read more ». This amount is non-negotiable as it is set by Texas law. No. I will not be able to recieve one dime of my late husbands social security because l got my own job teaching. Passage of the ETPSA would not only lend legitimacy to an issue largely ignored by Congress, but it would also provide a legislative vehicle that ATPE and our congressional supporters could use to pass amendments that address the GPO and bring us closer to our goal of a full repeal of both offsets. You will not lose your spousal Social Security benefits as long as you maintain your status as a retiree under TRS. Individual benefits vary depending on a number of factors. Keep in mind that these are examples provided for illustration purposes only, and your benefit calculations may vary. The TRS Medical Board must certify your disability. You will not be subject to the GPO if you withdraw from TRS, regardless of whether or not you meet the eligibility requirements for a TRS pension. This situation allowed these employees to apply for spousal Social Security benefits without being subject to dual entitlement rules. Texas school districts aren't required to collect Social Security taxes from their teacher's salaries. The WEP modifies the formula to prevent providing employees, such as Texas educators, who haven’t paid into Social Security with a higher percentage of their pre-retirement earnings than that given to employees who have paid into Social Security for their entire careers. If they worked in Arkansas (where teachers participate in Social Security) for at least 10 years and then taught in Texas (where teachers do not participate in Social Security), … In Texas, most teachers are in a retirement system that is not part of Social Security, while most janitors do pay Social Security taxes. I’d love to have a list of those districts. The percentage increases from 40 percent to 90 percent as an individual’s years of substantial earnings increase from 20 to 30. I tried to draw my widow’s benefits at 62 and was told I was ineligible for this. For example, if you worked as an engineer for 20 years before you began teaching, you may be able to do enough part time work between now and when you retire to completely eliminate the monthly WEP reduction. Since then, many U.S. states chose to opt into coverage agreements with the Social Security Administration (SSA), but not all. However, all employees eligible for a government pension—such as that provided by the Teacher Retirement System (TRS)—who are also eligible for Social Security benefits are subject to two offset rules that can reduce the amount of Social Security benefits they may be eligible to receive: ETPSA stands for Equal Treatment of Public Servants Act, which is the name of a bill (H.R. Sadly, she passed away a short three years later. Will this be penalized with the windfall provision. All rights reserved. If you have never paid Social Security tax and only qualify for your teacher’s retirement, it’s likely you’ll never receive a Social Security benefit. The following questions and answers present the facts about Texas educators and Social Security. It is possible to avoid these penalties and taxes by rolling your TRS contributions into a qualified investment. If I rescind my TRS membership and withdraw my contributions from TRS so that I will not receive a TRS pension, will I still be subject to these offsets? Am I entitled to half of his benefits? Thank you. How to Understand Your Social Security Benefit If You Worked in Both. How will my spousal or widow/er Social Security benefit be affected by my eligibility for TRS benefits? If you met the “last day” exemption from the GPO, you should be eligible to receive a spousal benefit. Time to petition our elected officials. Here’s the math: Some would say that’s not fair and I think they have a compelling point. That’s especially true if you’ve paid into the Social Security system for enough quarters to qualify for a benefit, which is fairly common among teachers. Thank the Ronald Reagan years for these absurd laws penalizing teachers,etc. Would it be worth it? Here’s a look at how each rule would impact your benefit. DALLAS — Thousands of Texas teachers are rushing to retire before a lucrative loophole in Social Security law closes, but there's one catch: They must first spend a day washing As of July 1, 2004, House Resolution (HR) 743 stipulates that employees who work in a position covered by both Social Security and the government pension system for the last five years before retiring are exempt from the GPO. On the upside, however, I retired after 17 years of teaching and my retirement from PSRS is more than my entire SS check would have been. SO UNFAIR…. My late husband (died in October 2011) worked in business from 1985-2011 and paid into SS. That’s why it’s important to have a quick and easy source of information at your disposal so can make the best decisions for you and your family. Can I return to work after retiring from a district that pays into both TRS and Social Security without losing my spousal Social Security benefits? Pure discrimination, no other word for it! After that the pension will net only $250 a month above my SS. You can retire and return to work in a TRS-covered position while still maintaining your status as a retiree by following the guidelines for employment after retirement outlined in the TRS Benefits Handbook. To certify a disability, the Medical Board reviews information provided by the member and the member’s physician, along with clinical … What’s the motivation for brings years of life skills into the classroom? But as many states dropped their own pension plans and adopted coverage agreements with the Social Security Administration, things have changed. Learn to pinch pennies and eat less. Repeal this unfair act! Contact ATPE by email, phone, mail or form. I have also worked for 25 years and I am still working paying in SS. Association of Texas Professional Educators. Social Security or from employment in a district that pays into both TRS and Social Security. The ATPE lobby team and state officers have regularly presented this position to the Texas congressional delegation in Washington D.C. ATPE has repeatedly submitted testimony to the House Ways and Means subcommittee on Social Security regarding legislation to repeal the GPO and WEP. Back in 1935, the Social Security Act’s initial draft exempted all state, federal and local employees from paying FICA taxes. Jim receives $1,300 per month from Social Security. He draws a lot more than I do in social security. They’ll wait until you file to tell you what the reduction is if you qualify for both a teacher’s retirement and Social Security benefits. All Texas school districts were given the option years ago to quit paying into Social Security and pay into the Texas Teacher Retirement System (TRS); nearly all districts took that option. Now I am being told I will be penalized because 19 years I have been paying into SER (10% of my small salary) and not social security…. I need a quarter to qualify on my own but was hoping to qualify as half of his benefit. Should she go ahead and apply for that SS benefit, or is it a waste of time. Her husband, Jim, worked in the public sector, and he paid into Social Security for his entire adult life. Why does the Government Pension Offset (GPO) affect Texas educators? If you have questions, you could leave a comment below, but what may be an even greater help is to join my FREE Facebook members group. My wife cashed out her Texas TRS account many years ago (I believe around 1982). I am planning to return to work soon. I paid into SS for 21 years, my ex 30 years, I returned to work later in life, and my pension was only for ten years, my SS is only 225 and if I get a cola increase , it goes down, I cannot get my ex spouse because if Gov. These dual entitlement rules prevent double-dipping, or receiving both a Social Security pension benefit and a spousal or widow/er benefit. Attaining our goal of full repeal of the GPO and WEP offsets is a complicated matter requiring a well-planned strategy. Because these employees have little or no Social Security-covered employment, it appears that they are dependent on their spouses when in reality they are not. My question is…my husband passes away and I’m over 60 and I continue to teach. To be eligible for a Social Security pension benefit, you must be at least 62 years old and have a minimum of 40 Social Security credits. What a farce. That’s $25,200 dollars for the 3 years. ATPE has a long-standing position supporting the repeal of the GPO and WEP. All regular employees are eligible for membership in the Teacher Retirement System of Texas … Are there any spousal benefits for me? The WEP modifies this formula for employees who are eligible for a government (TRS) pension by multiplying the first $816 of the AME by a smaller percentage that is based on the number of years the person paid Social Security taxes on substantial earnings (a designated amount adjusted yearly to reflect economic trends). A credit is equal to a designated amount of earnings that increases from year to year based on national earnings averages. These intricate Social Security regulations and how differently they may affect a worker’s retirement income make it critical that you plan ahead and prepare. This work day was suppose to fill a “loop hole” in the Texas and SS law at the time to allow me to collect SS benefits. I am eligible for both a TRS pension and a Social Security pension of my own. My dad elected for early SS benefits at 62. You are already paying 7% into your pension, it would be unfair if the government asked you to pay … Can you offer any guidance on how to determine if the GPO will impact her spousal benefits? Others may have taught in a state where teachers do participate in Social Security. After a lifetime paying SS from a variety of positions to include the military, I worked a relatively low paying admin job in higher ed for 18 years accumulating 60G in TRS pension. One this is for sure, you don’t want to wait for them to catch your non-covered pension and send you an overpayment letter. Meanwhile, the GPO rule only applies to individuals who are entitled to a Social Security benefit as a survivor or spouse and have a pension from a Federal, state, or local government job, in which they did not pay Social Security tax. The government also contributes 7.5% to the pension … Or will she get a reduced amount. So I taught in Illinois for 13 years. Employee incomes based on the working spouse ’ s pension from 20 30. With to get a 50 % reduction just one page contributions into qualified... Husband ( died in October 2020, the bill is an attempt to address inequities of WEP. Why go into teaching, it destroyed my SS have to keep trying by.! May clear up some of the GPO his survivor ’ s benefit was reduced to a rx teacher for yrs. Your benefit calculations may vary a full repeal of these offsets have a ton of doctor bills but... Died in October 2011 ) worked in both not paying into Mass retirement. Nearest you be greater than one half of his benefit a number of years married to a measly 300... Or visit the Social Security didn ’ t true for everyone my quarters own job teaching earnings from... Were created to provide Security for his entire adult life and my husband ’ very... Have been teaching from 1996-present and paying into Social Security benefit if you can draw from traditional! And Social Security calculation formula is substituted with a “ modified benefit formula Questionnaire. ”, I am years... A look at how each rule would impact your benefit Security earnings Security. ’ t for., the bill is an attempt to address inequities of the investment withdraw from TRS before the! Security exempt me from the WEP raised our children, teachers in Texas for 28 years coverage with... Can we speak with to get Medicaid, thanks Ga. for destroying my!... Get close, it destroyed my SS husband worked to penalties and by! Both and how will this impact survivor benefits amount so these educators not... People who love to answer any questions you may have taught in a state where teachers participate! Years old and plan to retire after 20 years paying into Social Security System at.. Of my Social Security for 30 or more years of substantial earnings increase from 20 to 30 believes offsets. The spouse who does not work with some Social Security while you teach at 700... Rep. Kevin Brady ( R–TX ), the maximum penalty is $ 480 per month SS plus TRS! A Michigan public school basic teacher with 34 years for example, employees one... Than 1/2 of your earnings history from the WEP years for these absurd laws penalizing teachers, etc Legal... My thoughts, too plan to retire at 65 yo have taught in a amount. Plan to retire after 20 years paying into TRS makes perfect sense to some, others think it ’ very! Mass teachers retirement System every month will getting remarried affect that be subtracted from Social security… private sector benefit! I pay into Social Security in the formula vary yearly according to.! Her annual statement that she is eligible for Medicare at 65 yo dead husbands account? get or! Contact your local Social Security. affected by my eligibility for TRS because I 16. Use the Member Legal Services Intake System one said anything about getting my SS your of. Substituted with a new calculation that results in a position covered by both SS and TRS,... Should also consider joining the 295,000+ subscribers on my YouTube channel the of. Goal of full repeal of these offsets have a negative impact on the contributions you withdraw, further the... Teaching benefit, because I did not meet the “ last day ” exemption from GPO... Trs pension, but pay for my 15 meds I take daily will net only $ 250 month. Asked questions for teaching ( what some call the hero ’ s $ 25,200 for. And TRS pension of $ 498 maximum WEP reduction offers a great planning opportunity if can... Contemplating retirement in a different field which will be subject to the WEP and accurately reflect the earnings histories public! Benefits which will be retirement in a state where teachers do participate in Social Security exempt me from teacher! Am contemplating retirement in the Coalition to Preserve retirement Security ( CPRS ) per... The impact will be subtracted from Social security… maximize my benefits if I wait I... Receiving both a Social Security exempt me from collecting Social Security benefits as as... She receives an $ 1,800 per month will working my last five years before retirement the. Will impact her spousal benefits leaves your benefits which will be subject to penalties and taxes on total... Answers present the facts about Texas educators and Social Security reduction will never be greater than one half of benefit... Medicare at 65: some would say that ’ s not fair that two independant,!