How Will Teacher Benefits Dock SS Payment?

chisueMay 13, 2008

I posted on "Retirement", but hope someone here knows this.

DH volunteered and did a little paid subbing at our high school after he retired. The teacher's pension fund took a percentage of his pay (about $2K). He's not going to sub anymore. He wants out of the fund.

The fund says they will give him lump sum of $2K or lump sum of 'benefits': $4K -- but that 'benefits' may result in an adjustment of his SS benefits. (You should also know that MY SS benefits are tied to DH's.)

Talking to SS has been chase-your-tail so far. Any thoughts?

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feedingfrenzy

It's hard to know without more info. If your husband has "substantial earnings" as defined by SS (see link below), it seems that he can take the pension benefit without it affecting his SS benefit.

But for the money involved, it would be a good idea to consult with a lawyer who specializes in pension benefits law. This is a very complicated area and really requires the services of a specialist.

Here is a link that might be useful: Windfall Elimination Provision

    Bookmark   May 13, 2008 at 12:30PM
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chisue

Thanks, FF. Yes, DH did have 'substantial earings' for over 30 years. We'll try the SS again for an answer. YOUR answer may help show THEM the way!

I'm thinking that since we are only talking about $4K, we'll just take the 'benefit' and let the chips fall where they may. Oops, no, have to talk to our accountant too.

I got us into this discussion after comtemplating the sad state of underfunded pension funds. AMF (All My Fault)

    Bookmark   May 13, 2008 at 1:21PM
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