Social Security

If a past employee opts to withdraw MOSERS funds all at once upon early retirement age, will that effect their monthly social security amount down the road, after reaching eligible age for such?

MOSERS does not offer a lump-sum withdrawal option of your monthly retirement/pension benefit if you take early retirement.

We recently discussed the scenarios in which a lump-sum option is available through MOSERS in this Rumor Central question.

As far as Social Security retirement benefits are concerned, your MOSERS benefit is a “public” pension and, therefore, is not considered a salary or wage so it does not count towards the annual earnings limit for Social Security. Earnings while in a MOSERS-covered position were also covered by Social Security, so there is no reduction in your Social Security benefit due to your MOSERS benefit. (See the information from Social Security on the “Windfall Elimination Provision” at https://www.ssa.gov/pubs/EN-05-10045.pdf for more information.) We encourage you speak to a tax professional or financial advisor for advice specific to your situation. For more information about Social Security, the Social Security Administration website is www.ssa.gov or call them toll-free at (800) 772-1213.