On May 19th Rob Pepper from the Social Security Administration spoke to our members about Social Security and Medicare. There was a lot of focus on the "Windfall Elimination Provision." We ask Rob Pepper to explain why this is important for our members.
Pensions and Social Security Benefits
If you work for an employer who does not withhold Social Security taxes from your salary, such as the San Francisco Fire Department, the pension you get based on that work may reduce your Social Security benefits.
What is the Windfall Elimination Provision?
The Windfall Elimination Provision affects how the amount of your retirement benefit is calculated if you receive a pension from work where social security taxes were not taken out of your pay. A modified formula is used to calculate your benefit amount, resulting in a lower Social Security benefit than you would otherwise receive.
The Windfall Elimination Provision primarily affects you if you earned a pension in a job where you did not pay social security taxes and you also worked in other jobs long enough to qualify for Social Security or disability benefits.
Firefighters frequently are subject to the Windfall Elimination Provision because they have a government sponsored pension and often have other vocations or employment which can qualify them for Social Security benefits.
Assistance Awaits You
If you have questions about the Windfall Elimination Provision, or would like help with your investments - our CFS* Financial Advisors are here to help. To reach them, call (415) 674-4864 for Stephen Seewer or (415) 674-4845 for Dennis Adams.*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. SF Fire Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. For specific tax advice please consult a tax professional.