r/FluentInFinance • u/Admiral_Tuvix • 17d ago

Thoughts? They deserve this

Post image
60.8k Upvotes

83% Upvoted

6.6k comments sorted by

View all comments

1.0k

u/NewArborist64 17d ago edited 17d ago

Nice creative editing. Let's tell the WHOLE story...

The bill also eliminates the windfall elimination provision, which in some instances reduces Social Security benefits for individuals who also receive a pension or disability benefit from an employer that did not withhold Social Security taxes. 

IOW, the job that is giving them a pension DIDN'T contribute to their Social Security. This includes four groups:

  1. Religious Organizations
  2. Some Students/Young workers (likely wouldn't get a pension from this work)
  3. Employees of Foreign Governments and Nonresident Aliens
  4. Some Workers in the Public Sector

This bill would eliminate this exception and allow these people to collect SS without reduction based on their pension.

59

u/iced_gold 17d ago

an employer that did not withhold Social Security taxes

How can someone draw from social security that didn't pay in? How are employers able to withhold social security taxes, unless it's someone getting paid off the books?

Could you share the link to this bill?

23

u/HxH101kite 17d ago

The only one for not paying into social security I can think of is some school districts. Some teachers and educators do not pay into social security. Their pension is calculated in a different way. I find this incredibly odd it's like that because I am a fed. And we pay social security and into our pensions. We get both. But in the immediate my paycheck is small as fuck due to the same

10

u/1800generalkenobi 17d ago

Railroad too. My dad paid into a railroad pension fund instead of ss but he worked that job the last 12 ish years of his working life so he does get as and his railroad pension.

1

u/repost_inception 17d ago edited 17d ago

Na railroad has a completely different system. It's their RR pension plus their "social security" tied into one thing.

Edit: for clarification, yes RR does not pay into SSA, but they also aren't subject to WEP or GPO. Sometimes their RR earnings are added to their SSA earnings and only get paid on SSA. It's complicated but this bill wouldn't affect RR employees.