Social Security Delimma

[Hayden Frys Mustache]

I found out this weekend that my MIL has only accrued 28 quarters of SS, largely because she spent her entire career teaching in Illinois, which somehow has exempted itself from social security tax. She's 71 and would need another 12 credits/3 years of earnings to scoop social security. She's in good health and her mom is 97, so living another 25 years is not out of the question.

I haven't seen the actual statement yet, but I'm wondering if there are any social security experts out there that would have any idea about whether it would be beneficial to find a way to get the 12 additional credits (just over $6k in earnings per year) and any advice about how to get the extra 12 quarters. Most of the work would have been odd jobs performed in the 70s, so would be on the very low end of the benefit spectrum. I see there are various progressive ways SS helps those on the low-earning side, so I'm thinking it would be worth our while to get her eligible to benefits.  She has no interest in working, but she does have children and grandchildren that could "pay" for childcare, piano lessons, etc.

Thanks for your help!

[marion10]

If she gets enough credits, she might be subject to Public Pension Offset. Google it- she will probably not get the full SS benefit and her teachers benefit.

[terran]

Was she ever married? I'm not certain, but I think she could qualify for spousal benefits regardless of how many credits she has herself.

She should qualify if her spouse died while they were married or if she was married for at least 10 years before divorcing and never remarried.

[Hayden Frys Mustache]

Was she ever married? I'm not certain, but I think she could qualify for spousal benefits regardless of how many credits she has herself.

She should qualify if her spouse died while they were married or if she was married for at least 10 years before divorcing and never remarried.

Yes, married 40+ years and her DH elected the 50%. Would her benefit increase if she got to 40 credits?

[Villanelle]

Is she collecting a pension from the IL teaching job?

[secondcor521]

Was she ever married? I'm not certain, but I think she could qualify for spousal benefits regardless of how many credits she has herself.

She should qualify if her spouse died while they were married or if she was married for at least 10 years before divorcing and never remarried.

Yes, married 40+ years and her DH elected the 50%. Would her benefit increase if she got to 40 credits?

In typical circumstances, she'll get the greater of half of her husband's benefit or her own benefit.  She won't get both.

So if she's getting $1,000 a month based on her husband's record, she can do nothing and continue to get that.  Or she can go through the hassle of getting the additional 12 credits.  Then if her own earnings record with the additional 12 credits of earnings shows she's entitled to $800 a month on her own record, she would get the greater of $1,000 or $800, which would mean she would get $1,000.  In other words, she would get no increased benefit.

If her own earnings record with the additional 12 credits of earnings shows she's entitled to $1,100 a month, she would get the greater of $1,000 or $1,100, which would mean she would get $1,100.  In other words, she would only get a modest increase.

If you learn the formulas, you could do some rough calculations to figure out how much her own benefit would be if she were to get the full 40 credits.

Also note that in order to accumulate those Social Security credits, generally someone would have to be paying FICA taxes on that income.  The FICA taxes would be $918 on $6K of income.

[Cranky]

Again, does she receive a state pension for teaching? If so, she probably can’t claim SS because of the offset.

My dh gets a pension from Ohio, and although he had 40 SS quarters *before* that, he doesn’t get SS. He paid into the state pension fund, not SS after that.

[Psychstache]

Again, does she receive a state pension for teaching? If so, she probably can’t claim SS because of the offset.

My dh gets a pension from Ohio, and although he had 40 SS quarters *before* that, he doesn’t get SS. He paid into the state pension fund, not SS after that.

+1. This is not uncommon as many states have teachers paying into defined benefit plans for across the state in leiu of SS. You need to find out the terms of her state's DB plan.

Also, be sure to read up on the WEP:

https://www.ssa.gov/benefits/retirement/planner/wep.html

[Sibley]

Illinois teachers pensions that I know of: IMRF or TRS. More likely TRS.

https://www.imrf.org/
https://www.trsil.org/

[fuzzy math]

WEP - Windfall Elimination Provision. Even if she did get the additional 12 credits the SS payment is going to be offset due to receiving a pension. It sucks.
Also what 71 yr old wants to work another 3 years? This sounds like something good in theory but unless she's destitute i can't imagine her wanting to go back for what might amount to a couple hundred extra dollars a month at most.

Also what is the DH at 50% thing? is he sharing her pension or is she drawing off his record?

[Hayden Frys Mustache]

Thanks for the food for thought everyone, good to know some background, this helps tremendously

[Cassie]

I am similar to your Mil and because of WEP only receive 398/month from SS. You are also prevented from drawing SS due to a spouse. I forgot the acronym for that provision.

[Catbert]

Windfall Elimination Provision and Government Pension Offset.  Google both of them.  Assuming she gets a decent amount from her state pension (when she didn't pay into SS) she will end up getting little if any SS either from her earning or her husbands.

[partgypsy]

My mother had the same situation, was a teacher in Il. Was offset by what her pension was. She worked more than your mother (paid into ss to extent she was eligible for soc sec). So, it's (probably) not worth it for her to work more, but worth asking social security. My mother got 550/mo soc security. And when my dad, her ex passed, her SOC sec went up  (maybe she started collecting his benefits?, Or recalculated based on when he filed, which was at 77 vs her 63?). Schedule her with a sit down appt at social security to walk her through this. They are the experts, not us on these rules.  Also look at the forms at ssa.gov