Social Security in the Twenty-First Century
It appears that the Social Security trust fund will be emptied in 2034, a year earlier than the previous forecast, with 77% of payments being paid at that time. What should you do if you want to save your Social Security retirement pension from being slashed by 23% once your reach 62 years old?
Between now and 2034, a lot may happen. Social Security reforms that affect retirees and those nearing retirement age are unlikely to have a significant impact. Kijakaz, the acting Social Security commissioner, has stated that Social Security must be strengthened for future generations. According to the trustees, legislators should promptly address the trust fund shortages to implement required adjustments gradually.
- Also Read: Splitting a Pension in a Divorce? Federal Workers Face Unique Hurdles in Court
- Also Read: Why More Federal Employees Are Reconsidering Survivor Benefit Elections in 2025
- Also Read: How CSRS Retirees Are Planning for Health Care Costs They Didn’t See Coming
Inflationary Adjustments
The Federal Employees Retirement System’s minimum retirement age is 56 and six months. Those who retire before 62 will not get a COLA on their pensions or unique supplement benefits. Would a COLA-eligible special bonus be paid if you worked after reaching the minimum retirement age?
Retiree COLA and current employee pay adjustments are distributed in January each year. Those under the age of 62 who choose an early, unreduced retirement are eligible for a FERS supplement, which serves as a temporary income supplement. At the same time, they wait to become eligible for Social Security retirement payments at the age of 62. COLAs do not affect it. If your post-retirement earnings go beyond a certain yearly threshold, your benefits may be decreased.
Special Provisions
How to know when you’ll start getting questions from the Office of Personnel Management (OPM) about how much money you make when you’ve retired early under CSRS?
Due to specific arrangements for federal firefighters, you have not been subject to the earnings cap up until now. After retirement, these benefits are available even if your post-retirement income is less than your minimum retirement age (MRA).
Upon reaching your full retirement age (FRA), OPM will send you a survey to determine how much money you have made (after July 2022 until Dec. 31, 2022). As a result, your supplement will be lowered by $1.00 for every $2.00 that your salaries exceed the 2022 limit of $19,560. Reductions will begin with your July 1, 2023 retirement check, which will be paid on Aug. 1, 2023.
Premiums for Medicare Part B
Do you have to pay a portion of your OPM federal pension to Medicare if you cannot use your Social Security Retirement check to pay for Medicare Part B?
As long as you’re not eligible for Social Security, you can request that your Part B premiums be withdrawn from your annuity. Make a note of your desire to receive a discount by calling 800-MEDICARE. OPM must be notified when the Centers for Medicare and Medicaid Services (CMS) submit withholding requests. If you or the Social Security Administration (SSA) request that the agency withholds your premiums, this cannot be done by the agency.
Contact Information:
Email: [email protected]
Phone: 6023128944
Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in thesuburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!
