social security & military pension

My scenario for retirement worked out well but not by design. It just happened that way. In 1957 President Eisenhower enacted legislation that resulted in military personnel having to contribute a part of their pay into Social Security. The military operated on the physical year calendar at that time so on October 1st 1957 military personnel started paying into Social Security.

I Joined the regular Navy in January of 1957 and retired in 1988 on the PDRL (Permanent Disabled Retired List). Not long after my military retirement a retired friend working in a state DVOP (Disabled Veteran Outreach Program) called and informed me about a job opening at the Naval Aviation Depot (NADEP) that was earmarked for disabled Viet-Nam era Veterans. I applied for and was accepted for the position and went on to become a Journeyman Aircraft Mechanic. I accepted that position as a FERs employee and paid into Social Security. One of the requirements that must be met to retire from DoD is to have more than 5 years service at age 62. So at age 63 after more than 10 years service I retired from my DoD job and shortly thereafter went on reduced (less than age 65) Social Security Retirement. My Social Security has not been penalized for any military or DoD connections because it is based solely on the amount paid into it. So I’m sort of a quad dipper as I get Military - VA - DoD - and SSA checks.

Anyone with prior military service that opted to take civilian government employment under the CSRS system and has questions about that system and how it will effect future retirement plans can go to the web page below. Even if you only worked for the government for a few years under that system it will effect your Social Security, especially when trying to get the 35 years required to start dropping off the lower earning years.

www.opm.gov/retire/

FastEagle

There's a fairly easy way to figure out how many years it would take to break even on taking early SS. Take the total reduced amount you would get in a three year period (62-65) then divide it by the dollar figure that you give up in one month. That figure is the number of months it will take to break even. In my case, it's about 13 years.

A little known fact. The SS law allows you to participate in a "do-over" when you turn 65. If you have the funds to pay back all of the first three years in a lump sum, you can then select to receive the full amount again. You only have to repay what was given. There are no interest or penality involved.

Hi all,
The extra Social Security credits for military service are automatically figured in for service between 1957 and 2001.

How You Get Credit For Special Extra Earnings


The information that follows applies only to active duty military service earnings from 1957 through 2001. Here's how the special extra earnings are credited on your record:

If your active military service occurred

* From 1957 through 1967, we will add the extra credits to your record when you apply for Social Security benefits.

* From 1968 through 2001, you do not need to do anything to receive these extra credits. The credits were automatically added to your record.

* After 2001, there are no special extra earnings credits for military service.

Service in 1957 Through 1977

You are credited with $300 in additional earnings for each calendar quarter in which you received active duty basic pay.

Service in 1978 through 2001

For every $300 in active duty basic pay, you are credited with an additional $100 in earnings up to a maximum of $1,200 a year. If you enlisted after September 7, 1980, and didn't complete at least 24 months of active duty or your full tour, you may not be able to receive the additional earnings. Check with Social Security for details.


In depth info can be found at :

www.socialsecurity.gov/retire2/military.htm

Hope this helps.

Sorry for the confusion. The $100 "credit" was never paid to anyone. One way or another it was added to the record of earnings. The reasoning was that military people were so poorly paid that they deserved something extra (my first pay check in 1962 was $92 and that was for a month). It just meant that you appear to have earned more money than you actually earned for the purpose of computing your SS pay. It happens automatically.

Glenn

Since 1957, if you had military service earnings for active duty (including active duty for training), you paid Social Security taxes on those earnings. Since 1988, inactive duty service in the Armed Forces reserves (such as weekend drills) has also been covered by Social Security.

Under certain circumstances, special extra earnings for your military service from 1957 through 2001 can be credited to your record for Social Security purposes. These extra earnings credits may help you qualify for Social Security or increase the amount of your Social Security benefit.

Special extra earnings credits are granted for periods of active duty or active duty for training. Special extra earnings credits are not granted for inactive duty training.

If your active military service occurred

From 1957 through 1967, we will add the extra credits to your record when you apply for Social Security benefits.
From 1968 through 2001, you do not need to do anything to receive these extra credits. The credits were automatically added to your record.
After 2001, there are no special extra earnings credits for military service.

cdrcos wrote:

One other thing -- if you draw SS at 62 instead of 65 (or later) you get a slightly less amount per month. But if you do the math, and add 36 months of "a little less money per month" and then figure out how long it takes you to overcome the "deficit bucks you'd get waiting" -- it's a very long time, forget exactly but about six or seven years before you actually show more money in total. So, if you're still around after age seventy, or so, then you get some minimal amount of actual dollars extra...

When I went to "retirement training" : about a year ago, they told us the break-even point for coming out ahead money-wise by drawing at 62 is 78 years. Before that you are coming out ahead, but if you live longer than 78, you would be losing money drawing early.

Life's a crap shoot! ???

I was going to wait till full at 66...THEN Obama got elected and I saw the light, suggest ALL draw ASAP!!!!

I ran the numbers front to back side to side and top to bottom. Here was my approach:

Knowing my state of health and knowing how long the ins companies etc think I am gonna live it about 76 - 78. I built my model around that. I am ahead of the game if I die before 78 and if I don't I start losing money, not much, but as stated life is a crap shoot...

Political outlook + your state of current health + your break even point = when it time to draw.

Were I you or anyone else if Obama gets elected, I would draw ASAP. Its very difficult for the govt to withdraw or delay an entitlement you are getting. If you not getting it, then delaying it for a few months or even years is easy to do.