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Old 05-07-2013, 01:46 PM
 
Location: Lakeland, Florida
6,682 posts, read 11,908,175 times
Reputation: 7904

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I Need some advice and any info people can give on this subject, because I have a problem that came out of nowhere. It is devastating. I am a Federal Retiree and have been for some time now. Just last year at age 62 I was eligible for Social Security. I was told by the Federal Pension office that part of my pension would end at age 62. Reason being a was eligible for SS. So I took it, There were penalities imposed on my SS because I receive a Federal Pension, even though I was penalized on the pension. By the elimination of part of it. What all that said.

Last Week May 1st I was on my online banking. I saw that my Federal Civil Service Payment was some 80% less than its normal payment. I was never notified of another reduction. I called them and its so difficult to get thru to the Pension office in DC. I was told they could find no reason for it, since my penalities were imposed and finalized a year before. However they did tell me the reduction, will now be my new monthly payment for the rest of my life. Other than COL raises when the Gov't gives them.

I'm at a loss a very severe loss of income at an age where I cannot recoup this. I might add since I get a SS payment which is not much. I am under restrictions by them until age 66, to be able to only earn a very minimum amount of money thru employment. Or my SS is reduced for every dollar earned over a set limit. This is a catastrophe for me. Especially with no warning which I feel needs to be addressed in itself.

I now have to make major changes in my life that I should not be making. A pension is just that it is income for the remainder of ones life. A set amount of money or at least that is what I always thought retirement income was.

I'm finding my pension reduction seems to be about equal to what my SS payment is now. So unless I am notified of the reason for this reduction. I am at a loss. I have made several calls to the pension dept and have no answer. THey seem very disinterested period.

I do not have a lavish lifestyle but I have to make future plans and fast. With half my income gone and never to return. I Can't go out and work full time indefinitely at this age, and full time employment will take away my SS. What to do, I currently work part time about 16 hours a week. Thanks.

Some 6 weeks ago I had to replace my 12 year old vehicle. So since I was living in my normal budget scheme of life. I bought a new lower cost KIa because that is what I could afford. If I had known I was having such a severe pension reduction. Then this vehicle would not have been bought. I just don't get how the Federal Gov't can reduce a long term retirement pension, and not even bother to notify the person.
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Old 05-07-2013, 02:32 PM
 
Location: NC
6,081 posts, read 7,042,221 times
Reputation: 12054
If no one gets back to you, try contacting the office of your local congressman and asking them to help expedite things.
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Old 05-07-2013, 03:47 PM
 
12,445 posts, read 14,574,540 times
Reputation: 14146
I'm real sorry the gov did that to you...it's good that you posted about it so that others will know they are not alone....other than that I could only say it's absolute b@llsh!t, and it shouldn't be allowed.
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Old 05-07-2013, 04:34 PM
 
Location: California
29,614 posts, read 31,937,404 times
Reputation: 24750
Sounds like you've been caught in that SS/Government Pension Windfall Provision/Offset fiasco? http://www.ssa.gov/pubs/EN-05-10045.pdf
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Old 05-07-2013, 11:50 PM
 
Location: Lakeland, Florida
6,682 posts, read 11,908,175 times
Reputation: 7904
Quote:
Originally Posted by luv4horses View Post
If no one gets back to you, try contacting the office of your local congressman and asking them to help expedite things.

I have decided to go that route. Thank you
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Old 05-07-2013, 11:53 PM
 
Location: Lakeland, Florida
6,682 posts, read 11,908,175 times
Reputation: 7904
Quote:
Originally Posted by Ceece View Post
Sounds like you've been caught in that SS/Government Pension Windfall Provision/Offset fiasco? http://www.ssa.gov/pubs/EN-05-10045.pdf

I asked about it. Yet I was told by the employee from the Pension office. That I had already been penalized and had both the Pension and SS reduced a year and a half ago. So I don't know what it is all about. It would be nice if the Pension people would have notified me, before doing this. Which they never have. Its a nightmare and I'm sure others are and have gone thru this. We just never hear about them, until we meet someone in this miserable position.
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Old 05-07-2013, 11:54 PM
 
Location: Lakeland, Florida
6,682 posts, read 11,908,175 times
Reputation: 7904
Quote:
Originally Posted by purehuman View Post
I'm real sorry the gov did that to you...it's good that you posted about it so that others will know they are not alone....other than that I could only say it's absolute b@llsh!t, and it shouldn't be allowed.

Thank you for you kind words.
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Old 05-08-2013, 02:54 AM
 
24,750 posts, read 26,817,884 times
Reputation: 22758
I know this won't be comforting, but the Social Security windfall provision is in place because SS replaces a higher percentage of your income if you were a low earner your whole life. However, if you're a government worker who didn't pay into SS for a number of years, but earned an average or above average income for all those years, then you really weren't a low earner...but your low SS contributions make you look like you were. The SS windfall provision is designed to take that into account. Most people don't get pensions at all any more, and that's especially true for people on the low end of the income scale, which is why SS pays a higher % of their earnings in benefits.

I know this sounds harsh, but it sounds like you weren't paying attention....this kind of info has been out for a while.
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Old 05-08-2013, 03:42 AM
 
64,713 posts, read 66,206,532 times
Reputation: 43118
i was going to say the same thing. they did not just slash your pension , that is how things can work in lots of jobs. railroad pensions and teachers are just some of them.

like mystical said the fact you didn't pay attention all these years as to how your pension works does not mean you were wronged.

many jobs pay little into social security as they take up the slack with their own programs . you cannot expect to get a pension , pay little in to ss and walk away with full benefits from both.
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Old 05-08-2013, 05:55 AM
 
Location: Wouldn't you like to know?
9,113 posts, read 15,306,834 times
Reputation: 3661
Also, this is also a good lesson on why you should live below your means through out your life....

Thank you for showing people what can happen if you do not prepare for later life w/a plan B.
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