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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I have been collecting Social Security since age 62. At age

Customer Question

I have been collecting Social Security since age 62. At age 65 I started to receive benefits from a former company's defined benefit plan. My Serp payments were deferred for 13 months to pay the FICA taxes on the Serp Value of $103,000 which was reported to Social Security. I just received a notice from SSA that I was overpaid by SS in the amount of $19,000 due to this Serp payment. I don't get this
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Customer: Just your opinion on this matter
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Submitted: 4 months ago.
Category: Social Security
Expert:  Lane replied 4 months ago.

Hi,

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First lets establish where we are in understanding ... Are you familiar with WEP (Windfall Elimination Provision).

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A Suppemental plan MAY (or may not) be subject to this reduction in social security benefits. But first please let me know what you are (what you think about this) and what you're beoing told is the reasoning , and we can go from there.

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If they've made a mistake (and it's possible) I can provide you with the applicable POMS (Program Operations Manual) which is many times what's seen as primary authority and can get the (many times) misguided individuals on Social Security's front lines to listen to your request for reconsideration.

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But again, please let me know all YOU know so we can be efficient here, and we'll go from there.

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One of the primary questions as it relates to SERPS is ... Wa the savings plan (1) separate from the retirement plan, and (2) yield only the amount the employee paid in (plus interest and dividends), rather than an amount calculated based upon certain conditions such as age, earnings, and length of service.

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I'll be here,

Lane

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I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS (Chartered Retirement Plans Speciaist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Customer: replied 4 months ago.
The SERPS payment was based on Salary and years of service. I paid FICA on the value of the SERP based on my salary the year I stopped working there/1996. The letter from SSA said You don't consider income from pension plans
Expert:  Lane replied 4 months ago.

First, we are not Social Security. You are using JustAnswer ... a web service that matches individuals with questions in the areas of tax law, social security law, retirement plans. etc (such as yours) with experts certified iun these fields, (such as me).

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You need to answer my question sothat I can help you.

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In social Security law you will see that SERPS can be treated in two different fashions

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(1) yield only the amount the employee paid in (plus interest and dividends),or (2) rather than an amount calculated based upon certain conditions such as age, earnings, and length of service.

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Which is yours ... the answer to your question turns on these facts

Customer: replied 4 months ago.
Number 2
Expert:  Lane replied 4 months ago.

And this was a true supplemental plan? ... (meaning that contributions were made on the portion of wages NOT subject to social security - on income over the social security wage base?)

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