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As someone who's never married, I never have thought much of this spousal benefits deal. And I'm sure there's much I don't understand about it.
If people are married and work they should get their OWN Soc Sec. And if one spouse doesn't work, then just like the couple lived off one salary before, they can be supplemented by one person's Soc Sec. in retirement.
file and suspend is great for singles too . you can file and suspend anytime after fra and at any point demand a lump sum check .
need a roof, major illness , want to take a world cruise ?
just ask for a retro check going bck to your fra . as a single if you don't do this at fra you have no claim to any past money .
So we are both over FRA and have delayed because of income which would have taxed SS
IF my husband does file and suspend over the phone this week and I file restricted application for spousal only will we be effected by any changes new law might bring?
The debt limit deal includes a provision to end the option to File and Suspend. It can be found under the section addressing "Closure of Unintended Loopholes".
Personally, I don't believe the statute, as written, is clear regarding for whom the various provisions, i.e. dual entitlement, deemed filing and the "file and suspension" apply. Those younger than 62? All new claimants filing 180 days after the enactment?
I just don't see the closing of the parenthesis--so what is inclusive to that remark??
Nevertheless, the summary found on the House website suggests the "file and suspend" prohibition will be effective for ALL "benefits payable" beginning six months after enactment of the statute.
I can't say I'm surprised. I think if I go back and check my old posts I will find that I predicted that this would happen.
This section re the LOOPHOLES CLOSINGS seems to say it applies to only a special section/age-related not to anyone who was/is FRA so it seems to apply more to anyone planning to do this rather than someone doing it now...am I misinterpreting it?
Subtitle C: Protecting Social Security Benefits Sec. 831. Closure of unintended loopholes
Closes several loopholes in Social Security’s rules about deemed filing, dual entitlement, and benefit suspension in order to prevent individuals from obtaining larger benefits than Congress intended. (Effective for individuals who attain age 62 after 2015, with respect to dual entitlement and deemed filing; and effective for benefits payable beginning 6 months after enactment, with respect to benefit suspension).
It does hit close to home as far as promises made to not change SS for those close to retirement but will the proposed law only be for future recipients o will it be retroactive as the PBS article states?
Last edited by loves2read; 10-28-2015 at 05:28 AM..
So we are both over FRA and have delayed because of income which would have taxed SS
IF my husband does file and suspend over the phone this week and I file restricted application for spousal only will we be effected by any changes new law might bring?
yes , it will stop all checks unless the suspend is lifted .
So I retired more than 10 yrs ago as teacher whose pension was not SS indexed...
My SS benefit when/if I apply for it will have the offset or windfall penalty applied...(I never remember which is which) and there is nothing to be done about my personal SS.
My spousal benefit I was able to protect by a provision then in effect that allowed me to work for district making deductions for and paying into SS and teacher retirement plan. By working half a day at clerical tasks I capped my teacher retirement with SS and was eligible under provisions then in place to receive full spousal benefit without any offset penalty or windfall penalty...
I have not applied for spousal benefits--my husband hasn't file for his SS so far.
Will this change eliminate my loophole protection so that my spousal would be reduced by my teacher's pension is--as my personal SS would if I were receiving it?
This section re the LOOPHOLES CLOSINGS seems to say it applies to only a special section/age-related not to anyone who was/is FRA so it seems to apply more to anyone planning to do this rather than someone doing it now...am I misinterpreting it?
Subtitle C: Protecting Social Security Benefits Sec. 831. Closure of unintended loopholes
Closes several loopholes in Social Security’s rules about deemed filing, dual entitlement, and benefit suspension in order to prevent individuals from obtaining larger benefits than Congress intended. (Effective for individuals who attain age 62 after 2015, with respect to dual entitlement and deemed filing; and effective for benefits payable beginning 6 months after enactment, with respect to benefit suspension).
It does hit close to home as far as promises made to not change SS for those close to retirement but will the proposed law only be for future recipients o will it be retroactive as the PBS article states?
That is an odd way to phrase it as the original law is supposed to reflect what Congress intended. But if I understand correctly, intent was to allow you to get basically the same money using a different payout but it turned out that there was a particular set of hoops to jump through that resulted in getting more money. They are going to fix that.
What does the phrase "effective for benefits payable 6 mo after enactment" actually mean in reality?
That this law becomes effective for new applicants 6 mo after it is passed...
In order words, this is a heads'up notification period?
Or it interrupts any benefits being received under a file/suspend strategy?
I think there is ambiguous slant to how that can be interpreted...and to me it reads that it will only prevent NEW applicants who attain 62 AFTER 2015 from choosing file/suspend or other strategies to increase benefits...
Why else put that qualifier in to begin with??
Closes several loopholes in Social Security’s rules about deemed filing, dual entitlement, and benefit suspension in order to prevent individuals from obtaining larger benefits than Congress intended. (Effective for individuals who attain age 62 after 2015, with respect to dual entitlement and deemed filing; and effective for benefits payable beginning 6 months after enactment, with respect to benefit suspension).
My take on this after reading the above is that spousal strategies will convert to the way that SSA used to compute a spousal benefit (taking 1/2 of the primary worker's FRA amount, then subtracting the spouse's full FRA amount and reducing it for age and adding it to the spouse's own reduced retirement amount) will only be in effect for those who are 62 beginning 1/2016. That means that SSA is just going back to the way it was always computed- before the FRA "loophole" came into effect.
The file and suspend strategy will go into effect 6 months after enactment of the the bill- so early to mid 2016, regardless of when you filed for this strategy. The primary worker will have to "unsuspend" in order for their spouse to continue collecting on their record. Of course, the primary worker will receive DRC's up to the point this happens- so from FRA to the 6 month timeframe.
I think there is ambiguous slant to how that can be interpreted...and to me it reads that it will only prevent NEW applicants who attain 62 AFTER 2015 from choosing file/suspend or other strategies to increase benefits...
Why else put that qualifier in to begin with??
This interpretation says the dual entitlement, i.e. restricted application, change affects people now under 62 but the benefit suspension change affects everyone:
Quote:
The new rules affecting dual entitlement affect people who turn 62 after 2015. Rules eliminating benefit suspension will take effect 6 months after the new law is approved. Edward Lorenzen, senior adviser for the Committee for a Responsible Federal Budget, says that the changes will affect 2 strategies, known as "file-and-suspend" and "filing a restricted application." These are often implemented by higher-earning couples.
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