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Old 03-28-2009, 07:03 AM
 
756 posts, read 1,991,695 times
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Quote:
Originally Posted by GLS View Post
I have no pension, but the government TAKES over 50% of everything I earn now.
If you and your business are in the 50% tax bracket, you are making a boatload more than any government employee (especially military) ever did!
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Old 03-28-2009, 07:22 AM
 
Location: Forests of Maine
30,727 posts, read 49,538,109 times
Reputation: 19162
Quote:
Originally Posted by usmcfamily View Post
If you and your business are in the 50% tax bracket, you are making a boatload more than any government employee (especially military) ever did!
A self-employed person automatically is paying 15% of his income to SS.

Depending on what your business is there may be lots of other taxes and fees too.

I do understand that self-employed folks do tend to pay more. [not always but generally].
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Old 03-28-2009, 07:49 AM
 
756 posts, read 1,991,695 times
Reputation: 627
Quote:
Originally Posted by forest beekeeper View Post
A self-employed person automatically is paying 15% of his income to SS.

Depending on what your business is there may be lots of other taxes and fees too.

I do understand that self-employed folks do tend to pay more. [not always but generally].
I know! My poor attempt at humor!
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Old 03-28-2009, 07:52 AM
 
Location: Central Maine
4,687 posts, read 5,545,734 times
Reputation: 4966
Quote:
Originally Posted by Robhu View Post
I retired from a public employee job with 30 years service and state pension.
I also had worked jobs where I payed into Social Security before and after my years at my life long job.
When it came time for SS to kick in (at 62) I was eligible for just a little over $500.00 a month.
I only get $242.00 a month from SS because of my other pension.
Yeah, that's the Windfall Elimination Provision that, on a federal level, only impacts Civil Service Retirement System (CSRS) retirees ... I think this is the only time that Social Security benefits are considered to be a "windfall"!

Quote:
The Windfall Elimination Provision primarily affects you if you earned a pension in any job where you did not pay Social Security taxes and you also worked in other jobs long enough to qualify for a Social Security retirement or disability benefit.
So, for federal employees under CSRS, if you work long enough for the full federal pension, AND you also work long enough in another job or jobs to qualify for SS retirement, your SS benefit is reduced ... 'cuz getting both the federal retirement and the Social Security retirement in full - even though you earned both - is somehow a "windfall."

There are many, many federal, state, and local government retirees who have had their SS retirement - a retirement they earned - permanently reduced because of this provision.
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Old 03-29-2009, 02:01 PM
 
48,516 posts, read 84,066,874 times
Reputation: 18051
Quote:
Originally Posted by forest beekeeper View Post
A self-employed person automatically is paying 15% of his income to SS.

Depending on what your business is there may be lots of other taxes and fees too.

I do understand that self-employed folks do tend to pay more. [not always but generally].
The self employed pays the entire 15% but he is not forced to do it. I know alot of self employed people who optout . State and local govwernment employees do not by law have to pay social security ;they have to vote as a group whether to or not. In most cases this was done a long time ago and the groupos has decided long before most empoloyees satrted working.
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Old 03-29-2009, 03:15 PM
 
Location: Forests of Maine
30,727 posts, read 49,538,109 times
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Quote:
Originally Posted by texdav View Post
The self employed pays the entire 15% but he is not forced to do it. I know alot of self employed people who optout . State and local govwernment employees do not by law have to pay social security ;they have to vote as a group whether to or not. In most cases this was done a long time ago and the groupos has decided long before most empoloyees satrted working.
Nobody is 'forced' to have a SS insurance policy. Most Americans have one, in each case it was applied for.

I have assisted folks filing their forms to opt out of SS. It happens.

If you believe that you have a better way, provided for you by your employer, or your church; that is a large part of making the claim that you wish to opt-out.

The other method of course is to have never applied in the first place.

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Old 03-30-2009, 01:59 PM
 
Location: Apple Valley Calif
7,475 posts, read 20,236,760 times
Reputation: 5616
If you work for 30 years under SS, and then work for the government, there is no SS reduction. I worked 26 years under SS before working for the government, so I get a slight reduction on SS. If I had wored four more years under SS, I would get no reduction at all...
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Old 04-01-2009, 10:28 AM
 
54 posts, read 171,455 times
Reputation: 45
Quote:
Originally Posted by forest beekeeper View Post
The military is changing over to a new method of calcuating it. Under their new system no body will get a dime before they are 50.

I retired after 20 years in the Navy, and I am getting 50% of my base-pay [as averaged from my last 3 years on Active duty]. Base-pay is about a third of my Active Duty take home pay. So my pension is closer to 1/6 of what my Active Duty take home pay was.
I think you are selling Military retirement a little short. I retired two years ago after 20 years under the High-3 system. My pension is 42k a year (gross pay). Using your math that means I was earning close to 240k a year (gross), which I was not. My gross pay was probably closer to 135k a year. I figured in base pay, housing and special pay.

There are discussions about changing the military retirement system but nothing is close to being public law.
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Old 04-01-2009, 10:53 AM
 
Location: Forests of Maine
30,727 posts, read 49,538,109 times
Reputation: 19162
Quote:
Originally Posted by pavejon View Post
I think you are selling Military retirement a little short. I retired two years ago after 20 years under the High-3 system. My pension is 42k a year (gross pay). Using your math that means I was earning close to 240k a year (gross), which I was not. My gross pay was probably closer to 135k a year. I figured in base pay, housing and special pay.
With 20-years of AD, your pension today is 50% of your base-pay, figured from the highest three years of base pay that you received.

I am not following how that is selling the DOD short.

If your AD base-pay formed a majority of your Gross Income; then the relationship between your AD pay and your retirement pay would be a closer relationship.

If your AD Gross Income was mostly the other pays and allowances; then the relationship between your AD pay and your retirement pay would be less.
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Old 04-01-2009, 04:39 PM
 
Location: home...finally, home .
8,241 posts, read 18,540,091 times
Reputation: 17780
There are many, many federal, state, and local government retirees who have had their SS retirement - a retirement they earned - permanently reduced because of this provision.

I know that this is not true in New York (luckily for me), but I have heard of it in other states. It really doesn't seem fair.
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