Time public pension payouts
Public employees who receive pensions based on work where they did not pay FICA taxes are subject to offset rules that can reduce or eliminate their Social Security benefits. But the offsets don’t kick in until the clients begin collecting a non-covered pension. Sometimes it may make sense to delay a pension and collect Social Security benefits first. In other cases, the Social Security annual cost-of-living adjustment may be greater than any inflation factor added to their pension. The result is that the Social Security benefit outpaces the pension income and a small benefit may be payable in later years. But it is up to the client to contact the Social Security Administration to start the benefit.