Ask Larry

Can The State Of Massachusetts Take Away Or Reduce My Social Security Benefit?

I work for the MBTA, recently I have read articles about MBTA pension fund be converted into Massachusetts Teachers' Retirement System. MBTA pensioners pay into SS. I have only worked at the MBTA for 5 years. I have been paying into Social Security since age 16. I have over 47 Qtrs. Can the State of Mass legally, by converting the pension, take away or reduce my SS benefit that I have contributed too,over 40 Qtrs.in the private sector?

Hi,

Well, if you've always paid Social Security taxes on your earnings up to now, those credits can't be taken away from you. I suppose if your earnings stopped being subject to Social Security taxes after a conversion such as what you are referring to, it could have an impact on your Social Security benefit rate if and when you start receiving a pension based on the non-covered work. That would be due to the Windfall Elimination Provision (WEP). For more information about WEP and it's exceptions, refer to this Social Security publication: https://www.ssa.gov/pubs/EN-05-10045.pdf.

Best, Jerry

Posted: 
Jul 3 2017 - 11:35am
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.