Q: I am a retired federal employee collecting a civil service pension. Throughout my working life, I occasionally took a job where I paid into Social Security. I have 44 quarters. I understand that's normally enough to qualify for Social Security retirement benefits. I will be 62 later this year and could apply for my Social Security. But a former colleague told me not to bother because my government pension offsets any Social Security I might be due. Is this true?
A: No, it's not true. Nothing in the world prevents you from collecting retirement benefits on YOUR OWN Social Security record.
Your friend was mixing an apple with an orange when he told you about the government pension offset. That offset does keep you from getting any potential benefits on YOUR SPOUSE'S Social Security record. What the law actually says is an amount equal to two-thirds of your civil service pension must be deducted from any possible dependent husband's or dependent widower's benefits you might be due from your spouse.
As long as you have more than 40 quarters of Social Security coverage, you will definitely qualify for a Social Security retirement benefit. However, there is another law called the Windfall Elimination Provision, which I've explained many times in past columns that will reduce the amount of that benefit. But again, you will be eligible for a small Social Security benefit so you should make plans to apply for it a couple months before you turn 62.
Q: I have spent almost all my career working as a teacher in California. As I think you know, California teachers do not pay into Social Security. But I have worked a little bit on the side and now have 20 Social Security quarters. I am getting close to retirement and am wondering: Do you think it would be worth it to take other jobs to get the 40 quarters I need to qualify for Social Security?
A: Normally I advise folks in your situation to start practicing the phrase, "Welcome to Wal-Mart!" In other words, I generally tell people to take whatever job they can find to get the quarters they need to qualify for Social Security. After all, with anything less than 40 quarters, you won't get a nickel. But with 40 Social Security quarters, you will get something. As I alluded to in the first answer, it won't be much. But it will be something.
However, you are still 20 quarters shy of reaching that 40 quarter threshold. And the way the law works, you earn only four quarters per year. (You actually get one "quarter of coverage" for each $1,090 you earn, not to exceed four quarters in one year.) You would have to work for at least five years to get the extra 20 quarters you need.