The Savings Game: Answering questions about the Social Security Fairness Act
Q. I receive a survivor benefit based on my husband’s work under Social Security. I receive a pension from my work as a teacher, and I was not contributing to FICA. I contacted the Social Security Administration (SSA) to determine if I would be entitled to a larger benefit because of the repeal of the Government Pension Offset (GPO). The SSA representative told me that because I was receiving a survivor benefit based on my work record, I would not be entitled to a larger benefit. Is that correct?
A. No, it is not correct. Your survivor benefit is based on the record of earnings your husband received under Social Security. I would contact the SSA again. If you receive the same misinformation from a representative, ask to speak with a supervisor.
Q. I receive a pension from my career working under the Civil Service Retirement System (CSRS) with the federal government. My husband is deceased. He was receiving a Social Security benefit based on his work record. When he passed away, I asked Social Security if I was eligible for a survivor benefit. At that time, I was told that my pension was too high, and I was not entitled to any survivor benefit. Am I entitled to a benefit now that the previous regulations were repealed?
A. You should be entitled to a survivor benefit now. Previously, you would not be entitled to a benefit if two-thirds of your pension exceeded the survivor benefit. Under the Social Security Fairness Act, you should be eligible for a survivor benefit now. You should contact Social Security. There will likely be a waiting period until Social Security finalizes new procedures.
Q. I generally stay up to-date with financial information from reading the Wall Street Journal. I have not read anything about the change in Social Security regulations in the Journal. Do you know why?
A. No, I don’t. In fact, I have written to the Journal asking about its coverage of the Social Security Fairness Act and its implications. I have received no response.
Q. I have read that the repeal of the Windfall Elimination Provision and the Government Pension Offset is not warranted because it provides Social Security benefits to individuals receiving pensions without paying Social Security taxes. Do you agree?
A. I believe that there are sound arguments that justify the WEP and GPO provisions. Repealing these provisions provides Social Security benefits to some who receive pensions from work outside Social Security, without paying FICA taxes, and their Social Security benefits should not be computed the same way as workers who only worked under Social Security. For more information regarding why WEP and GPO provisions were in place, you can contact the Congressional Research Service.
Q. Because of the repeal of WEP and GPO, I should be receiving additional Social security benefits. When will I start receiving them? Do I have to apply for them?
A. The SSA has indicated that it is preparing procedures that will result in new benefits being paid, but to my knowledge it has not published a schedule yet. When I get further information, I will pass it along in this space. The SSA has indicated that individuals will not have to contact the agency to receive the benefits they are entitled to, but I would recommend that you contact the SSA if you believe it does not have all the information required to provide you with benefits you are entitled to.
Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.