HOME | ABOUT US | SS ANSWERS | SS BENEFIT APPLICATION | ASK YOUR QUESTION | SS OFFICE LOCATIONS
city offered a 457b deferred compensation..Will my Social Security benefits be subject to any reduction
Q) I just turned 62. I have 23 years employment paying into SS. I have 16 years working for a city police department that did not pay into social security. Instead the city offered a 457b deferred compensation program in which they contributed 4% of my base salary but no additional money for any overtime I earned. Will my SS benefits be subject to any reduction in benefits such as the windfall elimination provision?
A) Deferred compensation shouldn’t affect Social Security benefits. Generally, the Social Security Administration isn’t worried about payments that aren’t for work in the current period. Because deferred compensation typically is subject to Social Security tax withholding, choosing to defer pay shouldn’t reduce the benefits that eventually will be available when a person goes to collect benefits, either. Source: https://finance.zacks.com/deferred-compensation-affects-social-security-benefits-11598.html
According to the Social Security Administration – You can continue working and start receiving your retirement benefits. … You can get Social Security retirement benefits and work at the same time before your full retirement age. However your benefits will be reduced if you earn more than the yearly earnings limits. After you reach your full retirement age, SSA will recalculate your benefit amount to give you credit for any months you did not receive a benefit because of your earnings. They will send you a letter that explains any increase in your benefit amount.