RT Journal Article
SR Electronic
T1 Social Security Benefits for Employees in Jobs Not<br/>Covered by Social Security
JF The Journal of Retirement
FD Institutional Investor Journals
SP 23
OP 34
DO 10.3905/jor.2014.2.1.023
VO 2
IS 1
A1 William Meyer
A1 William Reichenstein
YR 2014
UL https://pm-research.com/content/2/1/23.abstract
AB This article’s aim is to help the more than 6 million people with a pension from work that is not covered by Social Security decide when they, or they and their spouse, should claim Social Security benefits. When there is a noncovered pension, Social Security benefits will likely be reduced, if not eliminated, by the windfall elimination provision (WEP) or government pension offset (GPO). One of the authors’ examples illustrates a present-value-maximizing claiming strategy for a married couple. For convenience, assume that the higher-primary insurance amount (PIA) spouse is the husband and that he will predecease his wife. The key issue is whether his delaying his retirement benefits would meaningfully affect his wife’s survivor benefits. If so, he should base his starting date on the age he would be when she is expected to die (i.e., defer if she has a long life expectancy). If her survivor benefits will not increase meaningfully, then each spouse should base the claiming decision on his or her own life expectancy.TOPICS:Social security, legal/regulatory/public policy, retirement