Ask Terry Questions Clawback cruelty

Clawback cruelty

By Terry Savage on July 07, 2024 |

Hi Terry!
Just got a call from SS He said they are going to cut my money by half because I never reported that I retired and never responded to the yearly letters I retired 6/20 and never received any notification of retirement form or any yearly letters???? I’m only getting $1000 a month. If they cut it by half, that’s at least 5 bills that I use the money for.
He told me to bring in all the firms from TRS and SURS for the last 4 years. If I did not know about the SS
Policy and never received any letters I am not at fault. It’s their mistake. Since they don’t follow procedures why should I be penalized, right? Please advise what to do before I go to the SS office. Thanks!

Terry Says

Whoa — you have been caught in the WEP — the Windfall Elimination Provision, which offsets public pensions and SS benefits for those who also qualify for SS, by virtue of other covered income.

First, have the meeting and get their calculations.  Then write back with an update, and I’ll try to get you some help to make sure their calculations are correct.  But one thing is sure — they can cut your benefit to the appropriate amount — but they cannot take it ALL away to make up for their previous overpayments.

Please write back and let me know what happens.

Recent Questions



a personal
finance question