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Author: Leppert Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19346  
Subject: Re: Collecting Civil Service Retirement and S S Date: 3/21/2000 12:55 AM
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Yes, Erwin, you will be able to collect SS if you work to age 65 and pay into SS. But anyone receiving another government pension will have their SS "offset". Will it be worth it for you? Probably, but you will need to do the pencil work. The other thing you may want to consider is that you will then be eligible for Medicare. Here in NV, we have had many CA gov't employees move here and THEN realize they have no medical insurance locally. There is no Kaiser Permanente here in NV. Having your CA pension and health coverage & SS & Medicare gives you more options for your retirement plans.

Yes it seems unfair to have one's hard earned Social Security pension 'offset'. To me it is particularly unfair to widows/widowers, but that's another issue. Let's explore the reasoning before we jump to conclusions...the following is from the 1999 Federal Employees Almanac, pg. 152. Federal Employees News Digest is the publisher.1-800-989-3363

"Since the beginning of the SS program, lower-paid workers have received larger benefits in relation to their earnings than higher-paid workers. However because of the way benefits were computed, people covered by SS had their benefits computed as if they were long-tem, low-wage workers. These workers received the advantage of higher SS benefits in addition to their pensions from work not covered by SS. In 1983, the SS law was changed to eliminate this advantage."

Basically it works out to about 40% of your projected SS benefit for less than 20 yrs paying into SS. The book has a table and explanation and for those who love puzzles-have at it! I understand the reasoning, but personally I don't like it.
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