Social Security Combined With Teacher Retirement

[j415902a]

My wife is a teacher in a public school system in Georgia, and plans to retire at the end of the current school year.  The system she has always worked for (35 years) does not participate in Social Security, opting for Teachers Retirement System instead.  However, my wife worked regular jobs before she became a teacher, and accrued the full 40 credits necessary to claim social security benefits.  As a matter of fact, she has already been drawing SS benefits for the last year.

We have heard that there might be a possibility that her SS benefit would be reduced once she starts drawing her teacher's retirement.  But, when talking to the folks at the Teacher's Retirement System yesterday, they said as long as she has the required 40 credits there should be no reduction in her SS benefits.  Just looking for confirmation, one way or the other. Does anyone have knowledge of or experience with this situation?  Thanks.

[GailL1]

You are talking about two DIFFERENT things.’

1.  40 work credits is what one needs to be vested into the system - but that’s not what they use to figure any benefit

2.  It is the work history and the salary they make under the SS system that determines any benefit.

FROM THE SSA

Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings. If you do not have 35 years of earnings by the time you apply for retirement benefits, your benefit amount will be lower
than it would be if you worked 35 years. Years without work count as zeroes in the benefit calculation.

Now mind you, they are talking about COVERED earnings - meaning, those earnings to which one pays FICA (SS) taxes upon.  

The Windfall Elimination Provision in the Social Security system will reduce her benefits based on the number of years she worked under the SS system. 

She may be getting a SS benefit BUT if she has less than 30 years of working under the SS system and making contributions to it - then her benefit is being greatly reduced because she spent so many years working outside of the SS system and working under the government pension system.   Some links for you and your wife.

Social Security - How you become eligible for benefits 

Social Security - Windfall Elimination Provision (WEP) - How the WEP affects your benefits