Where Would You Adjust If Your Retirement or Survivors Benefits Were Reduced?

@jimc222, I am not sure who you are directing you reply too. Are you replying to GaiL1? To the AARP powers to be? To all AARP Forum participants? At any rate, it appears you are receiving a government pension due to Non-covered Employment. In other words, you have not paid FICA taxes on your Earnings from Non-covered Employment. Moreover, your government Employer has not paid their share of FICA taxes as well. Both of those amounts are significant. For example, if you worked 30 years in Non-covered Employment and earned $1,500,000 during that time, you and your employer did not pay $186,000 in FICA taxes ($93,000 each). If you earned $2,000,000 during that time, you and your employer did not pay $248,000 in FICA taxes ($124,000 each). I think you understand the math. It is 6.2% (.062) of your earnings paid by both worker and employer. For purposes of simplicity, I have used average earnings. Of course, if your earnings were greater, you and your employer's FICA taxes would be greater as well. I did not include the Medicare Payroll Tax since you and your employer may have paid that tax (1.45% or .0145). It should be noted that if you were covered by the Civil Service Retirement System (CSRS) prior to January 1, 1987, you had the option of remaining covered by CSRS or opting into the SS program and the Federal Employees Retirement System. If you were not covered by the CSRS, but worked for a State or Local government entity that did not opt into the SS program (i.e., school districts (teachers), some police, some fire departments/districts, etc.) your retirement program includes a benefit that is equal to or greater than any SS Benefit based on such Non-covered Earnings. I suggest that you read Recommendations 6 and 7 of the National Commission on Social Security Reform (aka Greenspan Commission) that I included as a link in my reply to Gail1 dated June 29, 2025. FYI, the Greenspan Commission's recommendations were the basis for the 1983 Amendments to the SS Act of which many became effective in 1984. If you read recommendation 6, you will see the Greenspan Commission's reason for developing a "fair" SS Primary Insurance Amount (PIA) calculation for the folks who worked most of their careers in Non-covered Employment. Prior to the 1983 SS Amendments, those folks who worked the appropriate number of quarters in Covered Employment after separating from service in Non-covered Employment were being paid SS Benefits as if they were low paid workers (think minimum wage). The PIA formula paid most of their SS Benefit at the 90% Bend Point because the SS system did not have any record of their Non-covered Earnings. The 90% Bend Point is used to develop a SS benefit to keep beneficiaries above the poverty level. The 90% Bend Point was not there to provide a "windfall" (enrich) folks with Non-covered Earnings. FYI, most Workers in Covered Employment must work 35 years and can elect reduced SS benefits at age 62 unless disabled.

Additionally, if you elect to do so, there are provisions in the SS Act (Section 218 Agreements) that you should review as well. Many government entities have Section 218 Agreements with the SSA. Those entities may have determined that it is more efficient to provide a SS Benefit for their workers.However, some government entities do not elect to participate in the SS Benefit provisions (i.e., Old Age (aka Retirement), Survivor, and Disability Income) and provide equal or greater benefits at their State and Local taxpayers expense (i.e., state income taxes, property taxes, sales taxes, etc.).

Lastly, the SS program is not an investment. You do not have an account such as an IRA, 401 K, 403 B, etc.) wherein you makes contributions that earn interest/dividends. Our SS Benefit  is called an insurance benefit program which is closer in definition to welfare benefits such as unemployment compensation. It is not a pension wherein you have a contractual right or legal right pursuant to ERISA to a vested benefit. The Supreme Court has already established that ruling years ago. In short, our SS Benefits may be subject to change and even termination at the whims of Congress. The recent change (Fairness Act) now provides you a "windfall" since most of your SS benefit is calculated at the 90% Bend Point that for the last 40 years has been preserved for the low income folks to keep them above poverty (also think mothers and widows returning to the workforce). Even though the treasury pays you via the SS benefit program, you are receiving Workers' taxes paid over 35 years or more and not government money for the taking. I strongly support paying the appropriate SS Benefits to all Workers. However, in your case, I will guess that you will owe anywhere from $100,00 to $200,000 or more in FICA Payroll taxes based on Non-covered Earnings. BTW, you are required to pay federal income taxes on up to 85% of your SS Benefits because your taxable income exceeds the thresholds established by Congress.