Social Security Offset for educators and other government pensioners

Social Security Offset for educators and other government pensioners

Social Security

Two-thirds  Spousal Offset

Retirement planning is all about the surviving spouse.  In the first example a non-educator and an educator are compared as spouses of social security recipients.   Neither spouse has earned any social security benefits of their own.  Spouse “A” is a non-educator receiving a $3,000 monthly pension.   Spouse “B” is an educator receiving a $3,000 teacher’s (government) monthly pension.

Impact at beginning of retirement

  “A” non-educator “B” educator
Pension    
Spouse’s pension   $3,000 $3,000
Pension $2,000 $2,000
Spouse’s SS Pension $2,000 $2,000
Spousal’s SS benefit $   850 -0-
Total monthly income $7,850 $7,000

Impact on Surviving spouse

  “A” non-educator “B” educator
Pension    
Spouse’s pension   $3,000 $3,000
Pension $1,000 $1,000
Spouse’s SS Pension deceased deceased
Spousal’s SS benefit $   2,000 -0-
Total monthly income $6,000 $4,000

These and other issues affecting educators, both recognized and unrecognized, are addressed in each of our brief (9:45am through 12:00noon) brunch seminars to be held in your area.  As a participant in one of the recent CTPF Retirement Workshops, we invite you to be our guest at one of the seminars.  Please call us at 312 566-5400 for information on our next seminar.

Disclaimer: BEFORE ACTING ON THIS INFORMATION YOU SHOULD CONSULT WITH YOUR TAX ADVISOR !

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