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State retirement fund vs SS benefits?


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A teacher is contributing to a teacher's state retirement fund. The state plan is in lieu of Social Security. While working the teacher is receiving her deceased husband's Social Security benefits. When this teacher retires, can she continue to collect her husband's SS benefits and collect her retirement benefit through the teacher's state retirement plan? The state is Texas. Cites would be helpful.

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Guest geekster

See the Social Security Administration's Publication No. 05-10007, A Law That Affects Spouse's or Widow(er)'s Benefits.

There is an offset. The off-set will reduce the amount of the Social Security benefit by two-thirds of the amount of her teacher pension.

Illinois, like Texas, is not part of the Social Security System.


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Guest Ralph Amadio

The question is more complex than the last explanation. Spouse benefits and pension recipients are treated differently and the calculation is based on the number of quarters of SS credit. Read both SS pubs, but be prepared to reread them several times. In addition, the local SSA offices often give varying interpretations that are not always correct. Any attempt at explaining the offset or cutback in spousal benefits should be caveated to the max. The best source seems to be well qualified legal counsel that specializes in SS matters and litigation.

This confusion is left over from the last (1983) attempt to save Social Security. The states took on the responsibility of providing their employees with benefits, and the fed looked at the benefits as a "cash cow" for SSA. Not a fair deal for public employees. The highly impacted are Teachers, firefighters and police officers-- No good deed goes unpunished.

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To geekster in particular and everyone else in general. Where can I find information on the States that have opted out of Social Security?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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