Rete

We just returned from the SSA office to file for Jim's retirement benefits. Seems that he will lose a substantial part of his US social security benefits because he is getting old age benefits from the Canadian government. Doesn't mean squat that he worked in both countries and paid into both systems. Not allowed to collect full from both. Full from one and partial from the other. It sucks.

Bob

Ouch, that blows chunks....cheeky buggers...

Giantaxe

Yep, it totally sucks. I think it's a reduction of 50c for each dollar of another "government" pension, including those from foreign governments. The so-called "windfall" provision that bites people who have paid into multiple public pension systems. This also bites a large number of US citizens who, for example, have a public teacher's, police etc pension. There are various draft bills in Congress to address this, but the cost of fixing it is so large that I hold out little hope it will get addressed.

ian-mstm

Are you able to choose the path that gives you the better deal financially? Is this just a US thing? I don't recall my folks having to cut their pension payments when they were collecting from both the UK and Canada. I'm going to be in the same position as Jim in less than 10 years... yikes!

Ian

Bob

UK doesn't care, it's a US only issue...apparently it's not that new of a thing though.

Wonder what the government will say if you send them a bill for reimbursement of all that tax that's been paid in

Giantaxe

This is a US social security provision:

http://www.afscme.org/retirees/1721.cfm

AmerLisa

Why do you have to tell them?

Brit3964

So much for the much-vaunted "Freedom and Liberty" bit. Kinda goes against all that the US stands for, ie earn as much as you like, no limits blah, blah Yeah right!

Giantaxe

I presume it'll show up on your tax return.

AmerLisa

You have to show Social Security your tax return?

ian-mstm

I read the link. Is the assumption that a pension from another country is treated the same as a "public-service job that is not covered by Social Security"? Or am I missing something?

Ian

Giantaxe

If you look on the applicable material on the UK/US Social Security

Giantaxe

If some of it is taxable.

I also wonder whether the US and UK social security administrations exchange information given there is a social security agreement between the two countries.

Brit3964

Quite possibly.

lapin_windstar

Are retirement benefits means-tested?