Does my husband have to file retroactively to 2021 the COLA at 5.9% 2022 from social security?

Today’s Social Security article answers questions about whether the 2022 5.9% COLA applies to benefits claimed after December 2021, when a child’s benefit termination may increase a child’s benefits. another child and where the Exceptional Elimination Clause (WEP) may not apply. Larry Kotlikoff is a professor of economics at Boston University and founder and president of Economic Security Planning, Inc.

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Does my husband have to file retroactively to 2021 the COLA at 5.9% 2022 from social security?

Hi Larry, Our plan was for my husband to collect his Social Security retirement benefits at age 70 in June 2022. Is there any benefit to applying retroactively to last year in November or December to take advantage of the huge increase in the cost of living. He no longer works, therefore no benefit to be received based on current income.

I won’t be 70 until November of this year. When he applies, should I get a spousal benefit and can I get my own higher benefit when I am 70 and it will be higher? Thank you, Marcia

Hello Marcia, The answer to your first question is no. Your husband will receive a credit for the 5.9% increase in the cost of living (COLA) for 2022 whether he starts collecting benefits this year or retroactively last year.

And the answer to your second question is yes. Because you were born before 02/01/1954, you can file a restricted application for spousal benefits only when your husband starts his benefits, and then you can apply to switch to paying your retirement benefits at age 70. .

You and your husband might want to consider using my company’s software — Maximize my social security or MaxiFi Planner — to ensure that your household receives the highest lifetime benefits. Social Security calculators provided by other companies or nonprofits may provide appropriate suggestions if constructed with extreme care. Best, Larry

Will my daughter’s benefits be redistributed to my son when she turns 18?

Hello Larry, My two children are receiving survivor benefits from their father who passed away earlier this year. They are the only 2 survivors to receive benefits on his file. When my daughter turns 18, what will happen to her share of benefits? Will the funds be redistributed to my son? Thank you Cheryl

Hi Cheryl, I’m sorry for your loss. Your son’s benefit rate will not increase when your daughter’s benefit ends. The maximum rate of the surviving child’s benefit is equal to 75% of the principal amount of insurance (PIA) of the deceased worker. Up to two surviving children can still receive their full maximum benefit rate if they are the only survivors collecting benefits on a deceased worker’s file.

The only time the amount of the surviving child benefit is reduced below 75% of the worker’s AIP is if there are more than two eligible children, or at least two eligible children plus a surviving spouse who is collecting benefits. . In this case, they must share the family maximum (FMB

) amount that can be paid on the worker’s file.

So your son’s benefit rate will not increase when your daughter’s benefit ends, because he is apparently already collecting his maximum rate of 75% of his father’s AIP. The only times a child’s benefit increases when another child stops receiving benefits is if their benefit rates have been reduced due to FMB. Best, Larry

Is it correct that I would not have a WEP deduction if my pension ends before my Social Security payments start?

Hi Larry, I paid into both social security and an uncovered pension, Calstrs. The uncovered pension is in a cash balance plan which allows me to take the benefit in the form of a three to 10 year term annuity.

My local Social Security office told me that if I waited to start collecting Social Security until my Calstrs pension ended, I would not have a WEP reduction in my Social Security benefits. Is it correct?

For example, if I start collecting my five-year Calstrs pension at age 58 and don’t start collecting Social Security until age 65, will I still have a WEP deduction? Thanks Sean

Hi Sean, Yes it sounds like what they told you is correct based on your description. Basically, any Windfall Elimination Provision (WEP) reduction would only apply during the months you receive both Social Security retirement or disability benefits and an uncovered pension.

Sometimes, however, WEP may still apply even after a person stops receiving payments from their retirement plan if they receive a lump sum payment instead of a pension. In the case of lump sum payments, Social Security spreads the lump sum pro rata over several years.

However, if your pension is only payable for a set number of months or years and that period ends before you begin to receive your Social Security benefits, the WEP will not apply to your rate of benefits.

Keep in mind, however, that I’m basing my answer only on the limited information in your question. If there’s anything I’m not aware of regarding your retirement options, it could change how Social Security would treat your retirement for WEP purposes. Best, Larry