My wife turns 63 this June and is presently working at a high school in Ohio and has SERS as her retirement. Do to the social security windfall penalty (and not having enough substantial earnings years) her retirement will be enough that she will not receive her social security benefit. Also half of my Social security will not work to her benefit as well.
She thought about drawing Social Security while she is working but her salary earns enough past the early retirement limit to wipe out her social security benefit.
Is there any way she could defer her earnings for her school salary now and collect what she can from social security until she retires.
Thanks for any suggestions
If she has been working for an employer who opted out of SS and she does not have at least 40 quarters during which she had the minimum income from an employer (or self employment) that did collect SS tax, then she will have no SS benefit based on her working record.
The spouse does have a SS benefit and it will not be affected by her employment and pension. However, under the Government Pension Offset rules, she will likely be eligible for a very small or no spousal benefit. The reason for this is a spousal benefit is considered by SS to first be the worker’s benefit plus the spouse benefit that when combined equals the full spousal benefit. But she has no benefit so the spousal benefit must be reduced by 2/3 of your own pension…which usually is more than the reduced spousal benefit.