Posted on Sunday, 29th November 2015 by Dennis DampPrint This Post
On November 2, 2015 the President signed H.R.-1314, the “Bipartisan Budget Act of 2015,” that impacts some Social Security filing options. There are major changes for those planning to file and suspend their Social Security payments or for those who planned to file a “restricted” application. These filing strategies allowed couples to increase their lifetime total payout.
Under the new law the File and Suspend option will no longer be permitted within 6 months of the bills signing. If you are at full retirement age and planning to file and suspend you have to apply before May 2, 2016. My wife and I were planning to file and suspend this February. We will be in the last group that will be allowed to take advantage of this strategy.
Filing and suspending permits the higher earning spouse, at their full retirement age, to file for benefits and then immediately suspend them. The lower earning spouse then applies for and collects a higher spousal benefit. The lower earning spouse increases their monthly payment up to half of their spouse’s benefit and the person suspending their benefit increases their benefit 8% a year for those born after 1943 or later. The partner that suspends their payment until age 70 would receive 132% of the monthly benefit for delaying collecting benefits for 48 months.
Another option many used was for one person to file a “restricted” application at full retirement age to collect a spousal benefit while their benefit continues to grow. This option will no longer be available for anyone turning 62 starting in 2016 and you must apply for and claim all benefits that you are eligible for. If you will be 62 or older in 2015 you will still be able to file a restricted application and only collect a spousal benefit.
Other changes include initiatives to reduce fraud through the expansion of their Cooperative Disability Investigation Units and by implementing new and stronger penalties.
Retiree Employment Update
Employers looking to recruit federal retirees and those soon to retire post job vacancies on our Jobs Center. Recently Adams Consulting Group LLC in New York City posted two opening, one for a HR Payroll & Benefits Manager and another for Senior Accountant. Both pay 6 figure salaries. Visit our Jobs Board for complete details.
Private companies, contractors, and state government departments use our Jobs Board to hire skilled federal retirees for part and full time positions nationwide. Many opportunities exist for those looking to supplement their retirement income or to start a second career. We provide this free job listing service to companies that are seeking to hire experienced retired federal workers.
Government Executive Magazine published its final print issue this December. I’ve been a loyal subscriber and reader for over 30 years and thankfully it will continue to be available online and through their email newsletter service. I sent Tom Shoop, Executive Vice President, a note congratulating him on their transition to digital and thanked him for the services they continue to provide. Upon receipt of the final print edition I immediately visited their newsletter subscription page to sign up for the digital version plus several other offerings. They offer four digital publications including Government Executive, Nextgov, Defense One, and Route Fifty and many other newsletters focusing on target audiences for technology, government careers, and other related areas.
They continue to provide a wealth of information for anything and everything federal and I often mention Tammy Flanagan’s retirement planning articles on our web site and in my retirement planning column. To avoid missing an issue visit their subscription page and sign up for newsletters of interest.
Helpful Retirement Planning Tools Distribute these FREE tools to others that are planning their retirement
- Retirement Planning Guide
- Master Retiree Contact List (Important contact numbers and information)
- How to be Financially Prepared When You Retire
- How to be Emotionally and Physically Prepared When You Retire
- 2016 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
- Survivor’s Guide
- Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)
Visit our other informative sites
The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION
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