Ask Larry

Can I Calm Down About Accepting My New Job?

Hi,
I've just taken a job with a school district as a custodian after 42 years paying into social security mostly in manufacturing management. I am now going into their retirement at 57 and don't plan on working much past 62 and am only now beginning to understand some of this "WEP" biz and it seems like when it's all said and done because I spent 30+ earning more than their minimum SS earning to qualify to keep some (looks like 90%). Am I heading int the right direction here and I can calm down a little in accepting this new job (no pressure, alone at night). Any help/thoughts much appreciated. Thanks....Keith

Hi Keith,

Yes, assuming that you have at least 30 years of Social Security covered work that's defined as substantial based on the Windfall Elimination Provision (WEP) rules, then receipt of a pension from a job where you don't pay Social Security taxes won't have any effect on your Social Security retirement benefit rate (https://www.ssa.gov/pubs/EN-05-10045.pdf).

Best, Jerry

Posted: 
Feb 28 2018 - 9:31am
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