Social Security Fact or Myth? The Answer

"I worked under Social Security for 20 years. Now I work for a school district that only pays Medicare taxes for employees. I heard that I won't get any Social Security when I retire because I will get a government pension!"

Answer: This is a myth.

Anyone who has earned 40 credits (roughly 10 years of work) under Social Security will be eligible for a retirement benefit as early as age 62.

It is true that the amount of their Social Security retirement benefit will be reduced if they receive a government pension based on work that was not covered by Social Security (i.e. no Social Security tax was withheld). This is because there is a different benefit formula called the Windfall Elimination Provision (WEP) used in these cases.

There are exemptions that can minimize the adverse effect of this WEP computation on government employees:

1. If you have at least 30 years of substantial earnings under Social Security (public or private employment), you will be completely exempt from WEP.
2. If you have between 21 and 29 years of substantial earnings under Social Security, your benefit rate will be increased for each year over 20 that qualifies as "substantial earnings" as defined by Social Security (see WEP Factsheet).
3. Even if you have 20 years or less of substantial earnings, any additional work you have that is covered under Social Security will increase your benefit.