Reply
Contributor

Collecting SS Benefits - Can Employer Cut My Pay?

I'm in NJ and collecting SS benefits (full retirement age) while still continuing to work full time. Somehow my employer found out and now wants to cut my pay.

 

When I applied for benefits, SS said my employer would not be informed, so I don't know how this could have happened. Can they actually cut my salary?

Any advice would be appreciated. TIA.

0 Kudos
1,186 Views
5
Report
Gold Conversationalist

I'd sure like to hear the ongoing events in this issue.

 

Listen to GailL. She's very knowledgeable about SS.

 

 


@SusanS680647 wrote:

I'm in NJ and collecting SS benefits (full retirement age) while still continuing to work full time. Somehow my employer found out and now wants to cut my pay.

 

When I applied for benefits, SS said my employer would not be informed, so I don't know how this could have happened. Can they actually cut my salary?

Any advice would be appreciated. TIA.


 

0 Kudos
1,129 Views
0
Report
Honored Social Butterfly


@SusanS680647 wrote:

I'm in NJ and collecting SS benefits (full retirement age) while still continuing to work full time. Somehow my employer found out and now wants to cut my pay.

 

When I applied for benefits, SS said my employer would not be informed, so I don't know how this could have happened. Can they actually cut my salary?

Any advice would be appreciated. TIA.


What rationale did he give you ?

Because you specifically asked SSA (Social Security Administration) if he would be informed, you must have already thought something was up. 

 

SSA might have contacted him about your earnings - something in the past.   Perhaps an error was found in his reporting of your earnings, the amount that he withheld or what he matched as your employer.

 

The SSA does sometimes contact an employer if a person is receiving or has filed for Social Security Disability Benefits - but this is more about the type of work the person is doing. 

 

To contact the employer for full retirement age benefits and then the employer wanting to make an adjustment could mean there has been an error in your record on his part but more details would be needed to determine if this could be the case.

 

It's Always Something . . . . Roseanna Roseannadanna
0 Kudos
1,160 Views
3
Report
Contributor

His rationale is that I don't need as much money now that I have a second income.  He also brought a new hire on board that the company can't afford, so it may be about robbing Peter to pay Paul.

 

A co-worker told me his pay was cut 5 years ago when the boss brought on another hire he couldn't afford.  More of a pattern than age discrimination.

 

I asked SSA if he would be informed because I was hoping to avoid this scenario.  I had to apply for benefits to supplement my income because I haven't had a raise in 3 years.  Cost of living is up - my income isn't.

0 Kudos
1,113 Views
2
Report
Honored Social Butterfly


@SusanS680647 wrote:

His rationale is that I don't need as much money now that I have a second income.  He also brought a new hire on board that the company can't afford, so it may be about robbing Peter to pay Paul.

 

A co-worker told me his pay was cut 5 years ago when the boss brought on another hire he couldn't afford.  More of a pattern than age discrimination.

 

I asked SSA if he would be informed because I was hoping to avoid this scenario.  I had to apply for benefits to supplement my income because I haven't had a raise in 3 years.  Cost of living is up - my income isn't.


As I said, SSA does NOT inform employers that a person has filed for retirement benefits just because they are filing for them.  So, the employer must have found out some other way, perhaps through the office grapevine.  Have you discussed your intentions with the employer?

 

From the info you have provided, it sounds like he wants to get rid of you or protect the company from what you may decide to do.

Your employer cannot reduce your pay without some other type action.  

Like:

Your employer could reduce your hours and thus you would receive less pay.

Your employer could put you into a new job that pays less just because it is a less (whatever) position.

Your employer has every right to hire another person but the employment expense is up to the company - not your pay.

Your employer might think you are getting ready to fully retire (leave) or want to cut back on your hours.  The employer may just be protecting themselves from labor need issues in either of these situations.

 

Again, have you discussed your intentions with the employer.

 

It seems this isn't about Social Security as much as it is about Fair Labor Practices and whether or not you have a legitimate complaint about how you are being treated.  Why don't you contact the Labor Board in your state with your labor / pay complaint.

 

The cost of living continuously changes especially if your expenses are based on someone or something raising it and you are unable to adjust.  The choice is ours on staying with an employer that does not show us our worth in financial reward.  We adjust our lifestyle based on our income not the other way around.

 

The cost of living does not stop increasing just because we begin to get SS retirement benefits.  When beneficiaries do get a Cost of Living adjustment it is based on how the Federal Board of Labor Statistics figures it based on GDP - far from the actual escalating rent, taxes, transportation, food, medical cost, including meds, that may happen to us based on where we live, our health condition and how we can adjust.

 

At full retirement age, at least your SS benefit will not be reduced if you continue to work, depending upon your work pay.    However, if there is any way you could continue to work and not claim your retirement benefits until 70, your SS benefit would reap a big reward - about 8% higher for each year that you wait to draw the benefit.

 

If you feel that your employer is treating you illegally, you can contact your state Dept of Labor and file a complaint.  Discrimination complaints are handled by the EEOC - provide detailed proof either way to prove your case.

 

 

 

 

It's Always Something . . . . Roseanna Roseannadanna
0 Kudos
1,061 Views
0
Report
Gold Conversationalist

wow. my jaw drops.

 

This sounds like it's a small company. And not a great place to work. Sounds like a small business person who really can't run their company very well.

 

I'm not sure that you will have any realistic recourse. Other than to move on to a new and better employer. On the other hand, considering your age (of SS collecting age) you may be subjected to the problems anyone has looking for work at an older age (yes, some are exempt from this due to particular skills or talents, but most of us are subject to this).

My smartaleck self plays scenarios like "okay, boss, you can pay me less and then I will work accordingly. I'd like to take things easier!". But such scenarios probably won't accomplish the goal of keeping your current income.

 

The situation would be like a younger person winning a largish sum in a lottery (but not millions) and the employer saying "okay, you don't need this money as much (as I myself do!) so I will now pay you less for your same work. Fair enough?"

0 Kudos
1,079 Views
0
Report
cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 
Users
Announcements

Try the new AARP Perks browser tool! Get timely reminders about AARP resources, discounts, and other member benefits as you browse online. Install AARP Perks now.

AARP Perks

Members Can Play More

Membership unlocks free online games and puzzles including classic Atari Games. Join today for just $12 per year with Automatic Renewal.

AARP Membership

AARP Rewards

Activate AARP Rewards to earn points for games, quizzes and videos. Redeem for deals and discounts. Get started with AARP Rewards now!

AARP Rewards Badge

Music and Brain Health

From soft jazz to hard rock - discover music's mental, social and physical benefits. Learn more.

Music and Brain Health