Just curious, is it a public utiliy?  Some public employees are exempt from social security taxes.  In Ohio we have PERS (Public employees retirement) and STR (State Teachers Retirement).  In addition to those, other members of the government are exempt such as congressmen.

Social Security is such a great program they exempted themselves.

Mike,
Unless your friend is classified as an independent contractor, his employer has no choice in the matter...he must pay the employer's share of the SS.

I just happen to have my EDD handbook for the state of California right here and there is no mention that utility or union members cannot collect benefits if they are laid off.  You cannot collect benefits if you are in a union and on strike.

And the State Teachers Retirement Fund for Ohio I thought was an pension program.  You get SS if your pension does not put you over the limit.  In CA, teachers cannot collect unemployment while school is not in session.  Same rules otherwise.

 

"Gorgeous hair is the best revenge."  Ivana Trump

Interesting...  It is a public utility.   

So...how does that work then?  When they retire, do they get Social Security benefits, or some other government pension?  I have never heard of this.

Mike McCann
MMC Engineering
Motto:  KISS
Motivation:  Don't ask

I don't know about the SS, but it did remind me of an utility employee tradition from many years back around here (southern US) for them to tell folks they "they get their power free" when some one would complian about their power bill.

Mike...I jumped the gun on the SS requirements.  Noting that your friend is an employee of a government agency, it's possible that neither he nor his employer has to contribute to SS...they apparently have their own retirement plan.

Hmmm..doesn't seem quite equitable, huh??

Another question...

If you first work for, say 20 years for a private firn, paying into SS, then work for another 20 before you retire with a public utility, do you still get SS retirement benefits based on you initial contributions, or are they lost due to the time lapse in SS payments?

Mike McCann
MMC Engineering
Motto:  KISS
Motivation:  Don't ask

You'll get social security checks but a reduced amount.

I don't know the formula, but the formula will take account the 20 years of paying into social security and the 20 years of not paying into the system.

The annual reports they send you will indicate the amount you will receive.

It's true that employees of some city owned utility companies, contribuite to a state plan, and not Social Securty. And it is true when you retire, if you contributed to both plans, you recieve Social Securty at a reduced amount.
The contribution to Social Securty is a sticking point, for some of my coworkers. They have a rule about 40 quarters.

I used to work for a railroad, and we did not pay SS.  However, the railroad had its own retirement program, and when I left after 4 years, eventually my credits were applied to SS.

SS had nothing to so with unemployment, which is a state-funded program.

We have a family friend that currently collects 3 pensions. Was in the Air Force for 20 yrs then worked for a phone/cable company with a pension plan. Retired a couple of years ago with SS, Federal and private company pensions. That is a sweet life.  

As mentioned, some 'government' workers do not pay into Social Security but into state or similar pension schemes.

If they only ever work for said govt agency then no, they aren't entitled to social security.

If they have also worked in private industry then they are entitled to Social Security based on that.

So, if you can work a few eligible quarters part time while at school, then work an applicable govt job till that's maxed out, and then work a few quarters in private or non exempt govt job (preferably at a nice high pay rate for the last few quarters to max out your social security) then you might just do OK.

Or something like that.  From memory, while you have to have worked 40 eligible quarters, the actual amount is you get is only based on the last few (can't remember how many, maybe a couple years worth or so).

If I remember correctly it's not based on the last X years/quarters, but the highest ones.  For a lot of people this will be the last ones, but it means if you work your last few years at reduced pay/hours (sort of 'easing in' to retirement) you aren't shooting yourself in the proverbial foot.

I want to say the payout is based on the best five years, but my memory on this point is only vaguely better than a guess.
 

You may be right thinking about it.

According to my most recent SS form, your bennies are an average over your entire time in the workforce.

Dan - Owner
http://www.Hi-TecDesigns.com

Quote (http://www.ssa.gov/pubs/10070.html):

Many people wonder how their benefit is figured. Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or "primary insurance amount" (PIA). This is how much you would receive at your full retirement age—65 or older, depending on your date of birth.

 

Oh, and as to the OP

Quote:

You are a government worker with a pension. If you also get or are eligible for a pension from work where you did not pay Social Security taxes (usually a government job), a different formula is applied to your average indexed monthly earnings. To find out how the Windfall Elimination Provision (WEP) affects your benefits, go to www.socialsecurity.gov/gpo-wep and use the WEP online calculator. You also can review the WEP fact sheet to find out how your benefit is figured. Or, you can contact Social Security and ask for Windfall Elimination Provision (Publication No. 05-10045).

If you work for Washington State, your pension is based on your last year or two income.

If you're a smart government employee and have political power, you convince the policy makers to double your salary a year before retirement because your pension will be doubled as well.

Hence, certain public officials in Washington State are getting huge pensions compared to the position they are in.

It ain't right. But it's politics.

Hmmm, this is at odds with what's stated on the SS bennies form I receive every quarter... :(

Dan - Owner
http://www.Hi-TecDesigns.com

"If you work for Washington State, your pension is based on your last year or two income.

If you're a smart government employee and have political power, you convince the policy makers to double your salary a year before retirement because your pension will be doubled as well.

Hence, certain public officials in Washington State are getting huge pensions compared to the position they are in.

It ain't right. But it's politics."

And the taxpayers are the ones being hosed. There are a lot of schemes going on to inflate the last year's salary, not just in your State.

One is taking an early retirement (if being offered) for a lump sum payment and get that payment applied to his/her last year's salary to inflate the pension benefits calculations. Another is collecting as many vacation days as possible then cash them in prior to retiring for an instant salary boost.