• Social Security grace year & non-service month

    From Jenn@21:1/5 to All on Wed Sep 2 12:36:52 2015
    I worked Jan/Feb then retired end of Feb 2013 & cashed in annual/sick leave. I started receiving Social Security in March. My total earnings for the 2 months were over the annual limit. Now they say I have an overpayment but from what I have read I have
    a grace year the first year and special pay such as annual/sick does not count. Am I wrong?

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  • From Retired@21:1/5 to Jenn on Tue Sep 29 13:53:45 2015
    On 9/2/15 2:36 PM, Jenn wrote:
    I worked Jan/Feb then retired end of Feb 2013 & cashed in
    annual/sick leave. I started receiving Social Security in March. My
    total earnings for the 2 months were over the annual limit. Now
    they say I have an overpayment but from what I have read I have a
    grace year the first year and special pay such as annual/sick does
    not count. Am I wrong?


    Not sure if there is such a thing as a "Grace Year", but there can be
    a problem with what SS calls "special payments".

    They try to explain the issue at this web page

    http://www.socialsecurity.gov/pubs/EN-05-10063.pdf

    Basically vacation and sick pay for previous years should not affect
    your benefits. Here is the example they give at this webpage:

    "Example of a special payment
    This example shows how we apply a special
    payment under Social Security rules.
    Mr. DeSilva retired at age 62 in November
    2014 and began to receive Social Security
    benefits. In January 2015, Mr. DeSilva receives
    a check from his employer for $17,000 for his
    leftover vacation time. Because this is for
    vacation pay he earned before he retired, Social
    Security will consider it a special payment and
    will not count it toward the earnings limit
    for 2015."

    To correct this, you need to contact SS, either in person or by phone.

    Again, quoting:
    "If you get Social Security and your total
    yearly earnings exceed the limit and these
    earnings include a special payment, you should
    contact Social Security. Tell us you think you
    received a special payment. If we agree, we will
    not count the special payment as part of your
    total earnings for the year."

    Also, the notice you received should have info on how to appeal the "overpayment".

    Good luck........

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